The US Department of Justice Investigating Apple’s Antitrust Practices
The US Department of Justice is currently in the final stage of investigating Apple, and there are expectations that an extensive antitrust lawsuit will be filed in the first half of this year, targeting Apple’s iPhone dominance. The investigation is focused on Apple’s control over its hardware and software, which complicates the process for consumers to switch away from Apple devices and hinders competition from other companies.
The investigation is particularly looking into Apple’s handling of the Apple Watch’s compatibility with the iPhone, as well as the exclusion of competitors from the iMessage service and the iPhone payment system, which blocks similar services from other financial companies. The leaders of the antimonopoly department within the US Department of Justice are reviewing the investigation’s findings, but a final decision on filing a claim and its specific content has not been made yet. Apple has not yet had a final meeting with the Department of Justice, where they could present their position before a lawsuit is filed.
If a lawsuit is filed, it would be the most significant federal antimonopoly claim against Apple, the world’s most valuable technological company. In the past five years, American regulators have filed claims against the four largest tech companies, including Google, Amazon, and Meta, accusing them of monopolistic practices.
Apple defends its business practices, asserting that they do not violate antimonopoly legislation, and emphasizes the seamless user experience created by the integration of iPhone hardware and software. However, the company is facing increasing regulatory pressure both domestically and internationally, particularly in Europe, where regulators are expected to demand that Apple allow third-party application stores.
Apple is encountering this rising regulatory pressure amidst a slowdown in its business. Last year, the company reported a 2.8% decrease in annual revenue, amounting to $383 billion. This was the first decline in the company’s revenue since 2019.
The Department of Justice’s investigation also encompasses other aspects of Apple’s business, such as the blocking of cloud gaming services in the App Store and restrictions on third-party companies’ access to iPhone geolocation services. The most recent lawsuit against Apple was filed in 2012, accusing the company of colluding with book publishers to increase the prices of digital books, resulting in a $450 million fine.