The Justice Department is in the late stages of an investigation into Apple and could file a sweeping antitrust case taking aim at the company’s strategies to protect the dominance of the iPhone as soon as the first half of this year, said three people with knowledge of the matter.
The agency is focused on how Apple has used its control over its hardware and software to make it more difficult for consumers to ditch the company’s devices, as well as for rivals to compete, said the people, who spoke anonymously because the investigation was active.
Specifically, investigators have examined how the Apple Watch works better with the iPhone than with other brands, as well as how Apple locks competitors out of its iMessage service. They have also scrutinized Apple’s payments system for the iPhone, which blocks other financial firms from offering similar services, these people said.
Senior leaders in the Justice Department’s antitrust division are reviewing the results of the investigation so far, said two of the people. The agency’s officials have met with Apple multiple times, including in December, to discuss the investigation. No final decision has been made about whether a lawsuit should be filed or what it should include, and Apple has not had a final meeting with the Justice Department in which it can make its case to the government before a lawsuit is filed.
The Justice Department is closing in on what would be the most consequential federal antitrust lawsuit challenging Apple, which is the most valuable tech company in the world. If the lawsuit is filed, American regulators will have sued four of the biggest tech companies for monopolistic business practices in less than five years. The Justice Department is currently facing off against Google in two antitrust cases, focused on its search and ad tech businesses, while the Federal Trade Commission has sued Amazon and Meta for stifling competition.
The Apple suit would likely be even more expansive than previous challenges to the company, attacking its powerful business model that draws together the iPhone with devices like the Apple Watch and services like Apple Pay to attract and keep consumers loyal to its products. Rivals have said that they have been denied access to key Apple features, like Siri virtual assistant, prompting them to argue the practices are anticompetitive.
A spokesman for the Justice Department declined to comment for this article. Apple also declined to comment.
The company has previously said that its practices do not violate antitrust law. In defending its business practices against critics in the past, Apple said that its “approach has always been to grow the pie” and “create more opportunities not just for our business, but for artists, creators, entrepreneurs and every ‘crazy one’ with a big idea.”
The company prides itself on the way the iPhone integrates hardware and software to create a seamless customer experience. In 2020, Tim Cook, Apple’s chief executive, said during testimony before a Congressional antitrust committee that the company redefined mobile phones with “its effortless user experience, its simplicity of design and a high-quality ecosystem.” He added that Apple competed against Samsung, LG, Google and other smartphone makers, which offer a different approach.
“Apple does not have a dominant market share in any market where we do business,” Mr. Cook said at the time. “That is not just true for iPhone; it is true for any product category. “
The case would add to the growing regulatory pressure both domestically and abroad cutting into Apple’s business, currently valued at $2.83 trillion.
Source : https://dnyuz.com/2024/01/05/u-s-moves-closer-to-filing-sweeping-antitrust-case-against-apple
