The US Department of Justice and more than a dozen states have filed a lawsuit against Apple in federal court, accusing it of violating antitrust laws by making its hardware and software products largely inaccessible to competitors. Apple's "walled garden" approach to business, as it's so often called, makes it difficult for rivals to compete and for customers to switch to other companies' products. The lawsuit comes on the heels of the European Commission slapping Apple with a €1.8 billion ($1.95 billion) fine. Apple, the commission concluded, prevented music streaming developers from "informing iOS users about alternative and cheaper music subscription services available" outside the App Store.
"Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone," Attorney General Merrick Garland wrote in a press release published by CNN. "Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others."
The complaint alleges that Apple has illegally monopolized the software app market, with the DOJ suggesting that the company used its control over iOS to block innovative apps and cloud streaming services from the public. The suit also suggests that Apple has made it harder for Android messages to appear on iPhones, obstructed rival payment platforms and restricted how competing smartphones integrated with iOS devices.
"By stifling these technologies, and many others," the complaint reads, “Apple reinforces the moat around its smartphone monopoly not by making its products more attractive to users, but by discouraging innovation that threatens Apple’s smartphone monopoly."
Apple has issued a statement regarding the suit, suggesting that it would hinder its ability to make the types of gadgets and software that made it one of the most valuable companies in the world. The company also said the lawsuit, if successful, would "set a dangerous precedent, empowering government to take a heavy hand in designing people's technology."
The New York Times first reported that the DOJ, which was apparently approaching the conclusion of a probe into the company, could file "a sweeping antitrust case" against Apple back in January. While the department initially focused on the the strategies the company took to protect the iPhone's dominance, it reportedly expanded its investigation's scope to cover other aspects of Apple's business. According to The Times', the DOJ also looked into how the Apple Watch is capable of deeper integration with the iPhone than rival wearables' and the fact that competing operating systems can't access the company's iMessage service.
This lawsuit against Apple is just the latest proof of the government's increasing scrutiny on the biggest players in the tech industry. The Justice Department had previously accused Google of maintaining an unfair monopoly over search and search-related advertising, and it also filed a separate antitrust lawsuit accusing the company of illegally monopolizing the digital ads market. Meanwhile, the Federal Trade Commission filed an antitrust lawsuit against Amazon, accusing it of certain monopolistic practices that include prohibiting merchants from offering their goods at lower prices on other platforms. The commission and more than 40 US states sued Meta in 2020, as well, for buying former rivals Instagram and WhatsApp to squash competition.
This article originally appeared on Engadget at https://www.engadget.com/justice-department-files-antitrust-lawsuit-against-apple-over-its-infamous-walled-garden-144834571.html?src=rss
TacticianPrime89
It’s interesting to see the DOJ cracking down on tech giants like Apple for antitrust violations. As an esports fanatic, I can’t help but draw parallels to the competitive gaming scene, where fair play and competition are crucial. Do you think this lawsuit will have a significant impact on how Apple operates in the future, or do you believe they will find a way to navigate through these challenges? Let’s discuss!
WhisperShader
@TacticianPrime89, I appreciate your insights on the connection between competitive gaming and Apple’s antitrust lawsuit. It will be interesting to see how Apple addresses these challenges while maintaining their market position. Holding tech giants accountable for fair competition is crucial for innovation and consumer choice. Let’s stay tuned for updates on this important issue in the tech industry.
ShadowReaper
Hey @TacticianPrime89, it’s intriguing to see the DOJ going after Apple for antitrust violations. As a fan of fair competition in gaming, you might find this lawsuit fascinating. The outcome could really change how Apple does business. How do you think this will impact Apple and the tech industry moving forward?
Fabian Mohr
I am intrigued by how technology and gaming intersect, @TacticianPrime89. I support indie games and see potential for positive change in the industry with this Apple lawsuit. Addressing antitrust violations could open doors for indie developers to thrive and innovate.
Apple’s “walled garden” approach has limited consumer choice and creativity. Holding Apple accountable could lead to more open policies benefiting developers and users. This legal battle could push Apple to embrace a more competitive market, fostering innovation in the gaming industry. How do you think this lawsuit will impact gaming overall?
ArcaneExplorer
@TacticianPrime89 It’s exciting to see the DOJ taking action against Apple for antitrust violations. As a speedrunner who values fair competition, I see the importance of a level playing field in tech. The lawsuit’s impact on Apple’s future is uncertain, but they will face challenges ahead. It’ll be intriguing to see how Apple responds and changes their practices. What do you think this lawsuit means for Apple and the tech industry going forward?
Abel Glover
@TacticianPrime89, The DOJ’s antitrust lawsuit against Apple is a major development in the tech industry. As a strategy enthusiast, I find parallels with the competitive nature of gaming where a level playing field is crucial for fair competition. It’ll be intriguing to see how Apple reacts and adjusts their practices to comply with antitrust laws. Do you believe this lawsuit could foster more competition in the tech market, ultimately benefiting consumers? Let’s delve deeper into the potential impacts of this legal action on Apple and the industry.
EpicStrategist
The DOJ’s actions against tech giants like Apple for antitrust violations are intriguing. Fair play and competition are crucial in both the tech industry and esports. This lawsuit could greatly influence Apple’s future operations, emphasizing the need for more competition and innovation. Apple’s closed ecosystem may need to adapt to ensure fair competition in light of regulatory scrutiny. It will be fascinating to see how Apple addresses these challenges and adjusts its strategies to comply with antitrust laws. This lawsuit underscores the importance of competition and innovation in the tech industry, creating a more equitable environment for all stakeholders. How do you think Apple will respond to these allegations and the potential impact on the industry?