US Justice Department Sues Apple Accusing It Of Having A Monopoly

This has been coming for a while, and I am sure that Apple has been preparing for this day. Which is the day that Apple gets sued by the US Justice Department. Here’s what they’re being sued for:

  • Blocking Innovative Super Apps. Apple has disrupted the growth of apps with broad functionality that would make it easier for consumers to switch between competing smartphone platforms.
  • Suppressing Mobile Cloud Streaming Services. Apple has blocked the development of cloud-streaming apps and services that would allow consumers to enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware.
  • Excluding Cross-Platform Messaging Apps. Apple has made the quality of cross-platform messaging worse, less innovative, and less secure for users so that its customers have to keep buying iPhones.
  • Diminishing the Functionality of Non-Apple Smartwatches. Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones.
  • Limiting Third Party Digital Wallets. Apple has prevented third-party apps from offering tap-to-pay functionality, inhibiting the creation of cross-platform third-party digital wallets.

The thing is that while I am not a lawyer, some of this stuff seems suspect to me. While other stuff on this list is typical Apple. The actual lawsuit that you can read here is 88 pages long. So this will take a while to unpack. In the meantime, I have a comment from Ted Miracco, CEO, Approov:

 “The new DOJ Antitrust lawsuit against Apple alleges that Apple has crossed the line to anti-competitive behavior, locking customers and developers into the iPhone and locking competitors out. The DOJ  states that as a result Apple is now stalling the advancement of the smartphone marketplace – “smothering innovation” according to Lisa Monaco – Dep. Attorney General.

    “Specifically, Apple’s efforts to bundle security with the AppStore marketplace has stifled competition in cybersecurity for mobile apps. This practice reinforces their claims that only Apple can provide security and perpetuates and reinforces the monopoly.

    “Further, this DOJ action is part of a global effort to roll back anti-competitive monopolies on  a global basis. 

    “The Department of Justice, EU and UK are all pursuing antitrust actions against Apple and are all also highlighting that for Apple to think that they alone can provide security for the mobile ecosystem is unrealistic.

    “An important element of the DOJ action is the balance between Apple’s role in setting security standards and the rights of developers to choose independent, potentially more flexible and cost-effective security and payments solutions. 

    “Apple’s stance has drawn scrutiny because developers need more freedom in selecting security and payment solutions that adhere to reputable security standards such as those set by the OWASP Foundation, without being subject to Apple’s “heavy taxes.” Independent security and payments vendors can offer robust protection against a range of threats, aligning with external standards and allowing developers to bypass platform-imposed fees, like Apple’s controversial core technology fee (CTF). The European Commission’s fine and the broader implications of the Digital Markets Act underscore the importance of allowing developers the freedom to implement independent security that can meet or exceed recognized standards.

    “Impacts on Consumers: Apple users may have a false sense of security when it comes to malware and other cyberattacks. The high number of zero-days patched by Apple over the last year is substantial, and indicates that Apple users are attractive targets for advanced threat actors. Because Apple devices are often used by high-profile business users, government officials, and celebrities, the Apple ecosystem is an especially tempting target for attackers interested in stealing sensitive data or disrupting the operations or specific organizations.  It is important for all mobile users to recognize that Apple devices have been targeted by malware and other cyberattacks in the past, and they will continue to be targeted and exploited in the future, as none of these devices or applications is truly hack proof today.”

It will be interesting to see how this plays out as I easily see this fight going on for years and ending up at the Supreme Court. I don’t know who is going to win this fight, but it will be one hell of a fight that you should get your popcorn ready for.

2 Responses to “US Justice Department Sues Apple Accusing It Of Having A Monopoly”

  1. […] Automatic wants to create its own messaging app. Thus this fits in with that ambition. And given Apple’s current issues with the US Justice Department, I guess they felt that the time was right to jump into this market as it might get a lot more […]

  2. […] Senator Elizabeth Warren is known for being pretty outspoken. But there are times where she gets it completely wrong because she doesn’t understand the facts or she doesn’t see the big picture. This is one of those times. Below is a Tweet that Warren put out in support of the Apple anti-trust lawsuit that the DoJ has filed: […]

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