antitrust for the US Department of Justice, during a news conference at the Department of Justice in Washington, DC, US, on Thursday, March 21, 2024. The US Justice Department and 16 attorneys general sued Apple Inc., accusing the iPhone maker of violating antitrust laws by blocking rivals from accessing hardware and software features on its popular devices. Photographer: Nathan Howard/Bloomberg, you’ll see that it is based on five key points.
Apple limits “super apps” such as WeChat that perform many daily functions including social media, payments, banking, video messaging and so on.Apple uses APIs and other critical access points in the smartphone ecosystem to control the behavior and innovation of third parties to insulate itself from competition.
The thing that I found most interesting about this case is that Apple is not being sued for one particular practice. Rather, it is being sued for the way it runs its smartphone business, including the operating system, iMessage, App Store, payments and wearables. This is a complete assault on Apple’s most profitable business unit, which generated nearly $200 billion in revenue for the company last year .
It’s worth noting that when the DoJ’s lawsuit was announced, Apple CEO Tim Cook wasn’t spending time at HQ on damage control. Instead, he was in China opening a brand new store in Shanghai, where Apple has to play much more by the rules because it has much stiffer competition. Apple doesn’t charge for in-app purchases there like it does in the U.S.
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