Today, the U.S. Department of Justice sued Apple, claiming that the company maintains an illegal monopoly on the smartphone market by locking out customers, jacking up prices, selectively imposing contractual restrictions on developers, and withholding access to key features to prevent competition.
The U.S. Department of Justice and the 16 state and district attorneys who filed the lawsuit against it said, “Apple has used its monopoly power to extract money from consumers, developers, content creators, artists, publishers, small businesses, and merchants. More money”.
In case you were wondering – yes, green bubbles were mentioned. In fact, suppressing the quality of messaging between iPhones and competing platforms is one of the key points of the case.
It also includes limiting the functionality of third-party smartwatches on iPhone, making it difficult for Apple Watch owners to switch from iPhone, and preventing third-party developers from creating competing digital wallets for iOS with tap-to-pay capabilities. Ironically, Apple was recently forced to allow such third-party digital wallet functionality on iPhones in the EU through the EU’s newly implemented Digital Markets Act, but Apple being Apple, it only opened this feature in the EU, and Not open elsewhere.
Apple has also been accused of “disrupting” so-called “super apps” (think China’s WeChat/WeChat and you get the idea that the apps we’re talking about are messaging apps, payment apps, shopping apps, and even others center of the application) all at the same time). Apple is said to have done this on purpose because it realized that allowing such apps would reduce “iOS stickiness” and make it easier for users to switch to competing devices.
Another point is that Apple has been limiting the availability of cloud streaming apps for content like games by making unreasonable requests (e.g. each game should be submitted individually to Apple for the usual review process, even if it is a streaming game) . This is allegedly done so that people will no longer be able to run any games on the very cheap hardware, thus reducing the need to upgrade to a new iPhone every few years.
Jonathan Kanter, head of the U.S. Department of Justice’s antitrust division, said:
Over the years, Apple has responded to competitive threats by imposing a series of “whack-a-mole” contract rules and restrictions that have allowed it to charge higher prices to consumers and higher fees to developers and creators. and curb competing substitute technologies from rivals.
The Justice Department asked the U.S. District Court for the District of New Jersey to prevent Apple from “using its control over app distribution to undermine cross-platform technologies such as super apps and cloud streaming apps” and from using “private APIs to undermine” messaging , smart watches and digital wallets,” and “exploiting the terms and conditions of contracts with developers, accessory manufacturers, consumers or others to obtain, maintain, expand or consolidate monopolies.”
Apple responded through spokesman Fred Sainz, who said:
This lawsuit threatens our identity and the principles that make Apple products stand out in a fiercely competitive marketplace. If successful, it will hinder our ability to create the technology that people expect Apple to deliver – the intersection of hardware, software and services. It would also set a dangerous precedent that would allow governments to take drastic measures when designing human technology. We believe the lawsuit is wrongful on both facts and law, and we will vigorously defend it.
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