Uncle Sam, 15 US states launch antitrust war on Apple
- Reference: 1711033640
- News link: https://www.theregister.co.uk/2024/03/21/doj_15_states_sue_apple/
- Source link:
The DoJ, joined by 15 states and Washington, DC, filed its case in a New Jersey federal court today. According to the [1]complaint [PDF], Apple has built a moat around its platforms that it uses to maintain a monopoly that ultimately harms consumers by allowing it to charge higher prices without fear users will be chased away.
"Over many years, Apple has repeatedly responded to competitive threats like this one by making it harder or more expensive for its users and developers to leave than by making it more attractive for them to stay," the complaint alleges.
[2]
Apple has been charged with four counts of violating the Sherman Antitrust Act and two state-level antitrust violations in New Jersey and Wisconsin.
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In a press conference announcing the complaint, DoJ officials claimed the Apple case was on the same scale as the Standard Oil and Microsoft monopoly battles, the latter of which prosecutors say helped Apple grow into the commanding position it has.
"When Apple began developing mobile consumer devices, it did so against the backdrop of United States v. Microsoft," the complaint states. "In the absence of the [Microsoft] consent decree …it would have been more difficult for Apple to achieve this success and ultimately launch the iPhone."
[5]No App Store needed: Apple caves, will allow sideloading in EU
[6]Apple's had it with Epic's app store shenanigans, terminates dev account
[7]Google formally accuses monopolist Microsoft of trapping people in its cloud
[8]What a surprise! Apple found a way to deliver browser engine and app store choice
[9]EU-turn! Now Apple says it won't banish Home Screen web apps in Europe
In terms of particular claims, the DoJ [10]alleges Apple maintains its monopoly power by doing things like blocking super apps that would ease user dependence on Apple hardware, suppressing mobile cloud streaming services, making it harder for third-party accessories (eg, non-Apple Watch smartwatches) to work with iPhones, limiting the use of third-party digital wallets from accessing functions like tap-to-pay, and otherwise locking down devices to force users to stick with Apple.
One of the most egregious examples that US Attorney General Merrick Garland called out was Apple’s refusal to make messaging between iPhones and Android devices work smoothly, as exemplified by the [11]Beeper Mini affair earlier this year.
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"[Apple’s] anticompetitive conduct makes it more difficult for iPhone users to message with users of non-Apple products," Garland said. Instead of doing so by improving its own products, Apple "does this by diminishing the functioning of its own messaging app and third-party apps."
Garland pointed out that this, and other issues raised in the complaint (like forcing iPhone users to share credit card info with Apple to use tap-to-pay) creates security risks for Apple customers.
"Apple has maintained its monopoly not by having a superior product," Garland said, but by being exclusionary.
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Apple has yet to respond to questions from The Register for this story. ®
Get our [14]Tech Resources
[1] https://regmedia.co.uk/2024/03/21/apple-doj-antitrust-2024.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/oses&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZfxnpEHegN1th4caYXat@gAAAUo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/oses&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfxnpEHegN1th4caYXat@gAAAUo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/oses&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZfxnpEHegN1th4caYXat@gAAAUo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/03/12/apple_update_eu_devs_can_distribute_from_websites/
[6] https://www.theregister.com/2024/03/07/epic_apple_developer_account/
[7] https://www.theregister.com/2023/06/21/google_ftc_microsoft_anticompetitive_cloud/
[8] https://www.theregister.com/2024/03/06/ios_17_4_eu_compliance/
[9] https://www.theregister.com/2024/03/02/apple_reverses_pwa_decision/
[10] https://www.justice.gov/opa/pr/justice-department-sues-apple-monopolizing-smartphone-markets
[11] https://www.theregister.com/2024/02/13/fcc_apple_beeper_mini/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/oses&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfxnpEHegN1th4caYXat@gAAAUo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/oses&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZfxnpEHegN1th4caYXat@gAAAUo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
Not quite the same thing. Apple's market share in smartphones is no where near Microsoft's market share in personal computer OS's. By excluding Chrome from the iPhones and iPads, Apple may be doing us a favor in preventing Google using its monopoly power from making Chrome the only option for web browsing.
My kids disagree
RE: not quite the same thing
Doesn't matter in the eyes of Sherman anti-trust; market penetration does not excuse non-competitive or lock-in practices.
Invalidate their patents
Might force them to actually start innovating again..
Prove
But can they prove it?
I very much doubt it. Apple is arguing that its closed-ecosystem makes if safer for its users. Which is demonstrably true if you compare it with Android's Wild-West application landscape.
OTOH both Apple and Android could be far safer if the platform owners took their job of vetting applications more seriously. Apple disallowing NFC access is a good example. If they vetted wallet applications more stringently the risk of financial fraud would still be limited. However, both Google and Apple seem to rely on automated checks which are easily fooled.
Good
Good. Fkkk Apple and the greedy toad Cook who is ruining the company [even if the shareholders like the extra riches for now].
-Apple user of nearly 30 years use, but still desire change. Play the game, be fair and with good products you still can make a good success. A bit like keeping your wife/girlfriend/partner with love and confidence rather than with a raised fist, emotional blackmail and added difficulties.
As I've said before, I like a number of Apple products, but I absolutely cannot stand the way the company does business. My only real problem with this, is unless Biden wins a second term, and maybe even then, the DOJ is likely to drop out of the case as soon as there's a change in administrations. Same might happen for some of the states if there's a new Governor elected. Apple just needs to delay things until the political winds change.
Oh the fanboys at Macrumours are screeching and probably the smell of wet knickers is already so strong.
A lot were "fu-- the EU" and pull out of the market when the EU took a look at the loved Apple. Now Biden is doing it its obviously the fault of the doddery old fart blah blah... How Jobs would close the company down in retaliation if they lost etc etc.. Pretty sure the shareholders would shit bricks and lawsuits if the board tried that game.
As an Apple user, this is overdue. They need a good kicking and learn how to innovate and even sometimes play nice. They managed it in the past.
AI, way behind. Apple car, money pit, iPhone dev - barely and the designs are meh, MacOS buggier and buggier due to shit QA, emoji fascination and wrong priorities, PadOS a joke for what the tablet could do. ..... need I whinge on?
---Apple user, circa 30 years of use and continuing.
edit: and next in my RSS feed was Fanboy John Gruber, with Cook's pole metaphorically in his mouth, pumping away in shock defence. Same broken record with the EU monitoring. Got to justify his cosy chats with the Big Apple every so often... slurp slurp...
And I did not order any popcorn today, damn.
Popcorn at the ready
This is long overdue, the tech industry in general has been at it for years. Apple, MS and Google are all anti-competitive where they are strongest, all the while being hypocrites and criticising each other for it
This is way, way overdue. Absolutely screw the DoJ for coming after MS just for bundling IE with Windows when Apple has been doing far, far worse far, far longer. Stop treating them with kid gloves and gut them already.