The US Department of Justice has filed a case against Apple for violating antitrust laws. More specifically, the case revolves around how Apple has used its locked-down iPhone ecosystem to build a monopoly.
As The Verge reports, the DOJ alleges that Apple blocks “super” apps, suppresses mobile cloud streaming services, blocks cross-platform messaging apps, limits third-party digital wallets, and even limits how well third-party smartwatches work on its platforms. This is the third time that the DOJ has sued Apple for antitrust violations in the past 14 years, and if you’re wondering why it was filed in New Jersey, there’s a good explanation for that.
During a press conference announcing the lawsuit, Deputy AG Lisa Monaco said Apple’s efforts “smothered an entire industry.” A response to the lawsuit from Apple spokesperson Fred Sainz says, “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets.”
The DOJ’s complaint “…made an even stronger case than I thought that they could,” said Vanderbilt Law School professor Rebecca Haw Allensworth. She continued on, saying, “They told a very coherent story about how Apple is making its product, the iPhone and the products on it – the apps — less useful for consumers in the name of maintaining their dominance.”
This case is likely to have a widespread impact, and given how long the DOJ’s case against Microsoft in the ’90s lasted, it could be a while before we see a resolution. It’s likely the DOJ’s antitrust case against Apple will probably drag out for years, but there’s one upside to that. In the interim, enforcers will be keeping an eye on how Europe is handling the DMA and what kind of rules and enforcement mechanisms are working to inject competition in digital markets. A court order in US v. Apple could be as far as three years down the line or more, even before factoring in appeals — it’s possible that in the midst of its ongoing troubles with European regulators, Apple reads the writing on the wall and changes its behavior on its own. “We’re not holding our breath for that,” says Bonta. “We’re bringing the litigation.”
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