Analysis-Apple antitrust suit mirrors strategy that beat Microsoft, but tech industry has changed

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The U.S. government's antitrust lawsuit against Apple draws on the watershed 1998 case that broke Microsoft's stranglehold on desktop software, but that may ...

- The U.S. government's antitrust lawsuit against Apple draws on the watershed 1998 case that broke Microsoft's stranglehold on desktop software, but that may prove to be an imperfect blueprint for addressing smartphone competition.

The government accused Apple of suppressing technologies that would have increased competition among smartphones in five areas: so-called "super apps," cloud streamed gaming apps, messaging apps, smartwatches and digital wallets. By comparison, Microsoft was accused of abusing its market dominance to impede users from freely installing software on computers using the company’s operating system.

“The fundamental assumption DOJ seems to have is that Apple must cooperate with its rivals to allow rivals to compete with Apple," Ross said. "That has antitrust law backwards."Microsoft was forced to open its operating system because it controlled 95% of desktop operating systems in the 1990s.

Microsoft "clearly was a monopolist and there were no effective competitors in the PC operating system space," Ross said. On the other hand, Android “is very popular, especially in the rest of the world, and is a very effective competitor with iOS.”

 

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