DOJ on the verge of filing antitrust suit against Apple
Sometime during the first half of this year, the Justice Department could file an antitrust case against Apple for using its stranglehold over iPhone hardware and software to make it harder for consumers to stop using Apple devices, make it tough for rival manufacturers to compete against Apple, and allow the iPhone to keep dominating the market for premium phones. Those who spoke with The New York Times did so anonymously because the investigation is still ongoing.
Some of the things that the DOJ is investigating include how the Apple Watch works better with the iPhone than with other brands, and how competitors are locked out of the iMessage messaging platform. Additionally, investigators are examining how Apple's mobile payments system blocks other financial firms from competing with Apple in this arena. Apple has supposedly met with the DOJ several times to talk about the investigation and no final decision has been made by regulators about filing a suit.
If Apple is sued by the DOJ, it will join Google, which is battling the Justice Department in two antitrust cases related to its search and advertising businesses. Amazon and Meta are being sued by the Federal Trade Commission (FTC) for trying to stop competition.
The U.S. Justice Department could soon file an antitrust case against Apple
Apple faces the possibility of the biggest legal challenge to its business plan with competitors complaining that they were unable to get access to digital assistant Siri. Apple's rivals say that their inability to access Siri is a sign that Apple's business strategies are anticompetitive. Apple said that its business practices do not violate antitrust law. The tech giant 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 comment touches on the iconic Apple ad called "The Crazy Ones" which starred "misfits and trouble makers" like Muhammad Ali, John Lennon (and Yoko Ono), Albert Einstein, Amelia Earhart, Jim Henson and Pablo Picasso." The beginning of the ad says, "Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes… the ones who see things differently — they're not fond of rules…"
And the last line, which never fails to leave a tear in many viewers' eyes, says, "And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do."
But we digress. Back in 2020 during testimony before a congressional antitrust committee, Apple CEO Tim Cook said, "Apple does not have a dominant market share in any market where we do business. That is not just true for iPhone; it is true for any product category."
As the DOJ ratchets up the investigation on Apple, the company's business has been declining. Last fiscal year the company reported revenue of $383 billion, a 2.8% annual decline and its first decline during a fiscal year since 2019. While sales of iPhones, iPads, and Macs declined, as we recently told you, the iPhone still led the way last year among premium phones priced at $600 and up with a global market share reaching 71% of such phones.
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