The US Department of Justice (DOJ) is in the “late stages” of an investigation into Apple and could soon file a “sweeping” antitrust case against the iPhone maker. The investigation, as reported by The New York Times, focuses on the company’s control over hardware and software services and how its “walled garden” approach has made it harder for competitors to compete and for customers to switch to competing products.
The investigators have looked into how the Apple Watch works better with iPhones than with other brands, as well as how Apple limits competitors’ access to its iMessage service.They also examined Apple’s payment system for the iPhone, which prevents other financial firms from offering similar services.
According to sources, the investigation into Apple’s practices is not yet confirmed as senior DOJ officials are still reviewing the results. Apple has reportedly had several meetings with the DOJ, as recently as December, but it has not yet had a final meeting where it can defend its practices. However, sources say that the DOJ could move ahead with the antitrust lawsuit against the iPhone maker as soon as the first half of this year.
Citing sources familiar with the matter, the report notes that executives from Beeper and Tile, two companies that have had disputes with Apple in the past, have talked with investigators from the Department of Justice (DOJ). The DOJ has also reportedly held discussions with representatives from banking and payment apps regarding Apple’s practice of blocking competitors from using tap-to-pay on the iPhone. In addition, Meta, a social media company, allegedly encouraged the DOJ to investigate Apple’s App Tracking Transparency (ATT) privacy tool in its meetings.
Apple has previously stated that its practices comply with antitrust laws. In 2020, Tim Cook, Apple’s CEO, appeared before a congressional antitrust committee and testified that their phones have redefined the industry by offering an effortless user experience, simple design, and a high-quality ecosystem. “Apple does not have a dominant market share in any market where we do business,” Cook said at the time. “That is not just true for iPhone; it is true for any product category.”
Last year, the DOJ sued Google, accusing the company of monopolising internet search in the antitrust case. Apple was one of the key players in the hearing, and its executives – Eddy Cue and John Giannandrea – were called in as witnesses as the case revolved around the deals made between the two companies for Google Search.
The investigators have looked into how the Apple Watch works better with iPhones than with other brands, as well as how Apple limits competitors’ access to its iMessage service.They also examined Apple’s payment system for the iPhone, which prevents other financial firms from offering similar services.
According to sources, the investigation into Apple’s practices is not yet confirmed as senior DOJ officials are still reviewing the results. Apple has reportedly had several meetings with the DOJ, as recently as December, but it has not yet had a final meeting where it can defend its practices. However, sources say that the DOJ could move ahead with the antitrust lawsuit against the iPhone maker as soon as the first half of this year.
Citing sources familiar with the matter, the report notes that executives from Beeper and Tile, two companies that have had disputes with Apple in the past, have talked with investigators from the Department of Justice (DOJ). The DOJ has also reportedly held discussions with representatives from banking and payment apps regarding Apple’s practice of blocking competitors from using tap-to-pay on the iPhone. In addition, Meta, a social media company, allegedly encouraged the DOJ to investigate Apple’s App Tracking Transparency (ATT) privacy tool in its meetings.
Apple has previously stated that its practices comply with antitrust laws. In 2020, Tim Cook, Apple’s CEO, appeared before a congressional antitrust committee and testified that their phones have redefined the industry by offering an effortless user experience, simple design, and a high-quality ecosystem. “Apple does not have a dominant market share in any market where we do business,” Cook said at the time. “That is not just true for iPhone; it is true for any product category.”
Last year, the DOJ sued Google, accusing the company of monopolising internet search in the antitrust case. Apple was one of the key players in the hearing, and its executives – Eddy Cue and John Giannandrea – were called in as witnesses as the case revolved around the deals made between the two companies for Google Search.