XPost: sac.politics, alt.society.liberalism   
   From: StendeJood@nospam.net   
      
   On Fri, 22 Mar 2024 08:21:06 -0000 (UTC), useapen wrote:   
      
   > The Department of Justice sued Apple   
   >  on Thursday, saying its iPhone ecosystem is a monopoly that drove its   
   > “astronomical valuation” at the expense of consumers, developers and rival   
   > phone makers.   
   >   
   > The government has not ruled out breaking up one of the largest companies   
   > in the world, with a Justice Department official saying on a briefing call   
   > that structural relief was on the table if the U.S. were to win.   
   >   
   > The lawsuit claims Apple’s anti-competitive practices extend beyond the   
   > iPhone and Apple Watch businesses, citing Apple’s advertising, browser,   
   > FaceTime and news offerings.   
   >   
   > “Each step in Apple’s course of conduct built and reinforced the moat   
   > around its smartphone monopoly,” according to the suit, filed by the DOJ   
   > and 16 attorneys general in New Jersey federal court.   
   >   
   > Apple shares fell more than 4% during trading Thursday. A breakup of Apple   
   > if successful would be one of only a handful of breakups under the Sherman   
   > Act. The DOJ has considered using it in other antitrust cases, but has not   
   > done so since the breakup of the Bell System in 1982.   
   >   
   > The Justice Department said in a release that to keep consumers buying   
   > iPhones, Apple moved to block cross-platform messaging apps, limited   
   > third-party wallet and smartwatch compatibility, and disrupted non-App   
   > Store programs and cloud streaming services.   
   >   
   > The challenge represents a significant risk to Apple’s walled-garden   
   > business model. The company says that complying with regulations costs it   
   > money, could prevent it from introducing new products or services, and   
   > could hurt customer demand.   
   >   
   > The lawsuit could force Apple to make changes in some of its most valuable   
   > businesses: The iPhone, in which Apple reported more than $200 billion in   
   > sales in 2023, the Apple Watch, part of the company’s $40 billion   
   > wearables business, and its profitable services line, which reported $85   
   > billion in revenue.   
   >   
   > U.S. Attorney General Merrick Garland said at a news conference that the   
   > Supreme Court defines monopoly power as “the power to control prices or   
   > exclude competition.”   
   >   
   > “As set out in our complaint, Apple has that power in the smartphone   
   > market,” Garland said. “If left unchallenged. Apple will only continue to   
   > strengthen its smartphone monopoly.”   
   >   
   > Apple said in a statement that it disagreed with the premise of the   
   > lawsuit and that it would defend against it.   
   >   
   > “This lawsuit threatens who we are and the principles that set Apple   
   > products apart in fiercely competitive markets. If successful, it would   
   > hinder our ability to create the kind of technology people expect from   
   > Apple—where hardware, software, and services intersect,” an Apple   
   > spokesperson told CNBC. “It would also set a dangerous precedent,   
   > empowering government to take a heavy hand in designing people’s   
   > technology.”   
   >   
   > The lawsuit follows years of investigations into Apple’s business   
   > practices and two prior DOJ cases against Apple: One over e-book prices   
   > and another over allegations that it colluded with other technology   
   > companies to depress salaries.   
   >   
   > “This anticompetitive behavior is designed to maintain Apple’s monopoly   
   > power while extracting as much revenue as possible,” the complaint said.   
   >   
   > iMessage, Apple Watch and cloud gaming   
   > The complaint highlights comments from CEO Tim Cook and other executives.   
   > Some users have asked Apple to improve Android-to-iPhone messaging.   
   > Developers have gone as far as creating apps that can circumvent the   
   > platform limitations, only to be shut down by Apple.   
   >   
   > Prosecutors highlighted one exchange between Cook and a consumer.   
   >   
   > “Not to make it personal but I can’t send my mom certain videos,” the   
   > complaint says one user told Cook, referring to a 2022 interview at a Vox   
   > Media event.   
   >   
   > “Buy your mom an iPhone,” Cook responded.   
   >   
   > The DOJ is also focusing on Apple’s smartwatch, Apple Watch, saying the   
   > company designed it to only work with iPhones, and not Android devices.   
   > The company’s decision means that “users who purchase the Apple Watch face   
   > substantial out-of-pocket costs if they do not keep buying iPhones,”   
   > according to the complaint.   
   >   
   > The Justice Department said Apple has fought cloud streaming services on   
   > its App Store platform, blocking consumer access to high-quality video   
   > games on iPhones, echoing complaints from Microsoft and Facebook parent   
   > Meta.   
   >   
   > Garland said the DOJ is also looking at changing policies around Apple   
   > Wallet, the company’s app for phone-based credit cards and payments.   
   >   
   > “When an iPhone user puts a credit or debit card in Apple Wallet, Apple   
   > inserts itself into the process that would otherwise occur directly   
   > between the user and the card issuer,” Garland said.   
   >   
   > Apple has faced several significant antitrust challenges more recently,   
   > largely focused on its control over the iPhone App Store. It mostly won in   
   > a civil suit against Epic Games in 2021, although it made concessions   
   > during the trial and had to make some changes to its policies under   
   > California law.   
   >   
   > “Today’s lawsuit seeks to hold Apple accountable and ensure it cannot   
   > deploy the same, unlawful playbook in other vital markets,” the U.S.   
   > government said in the release.   
   >   
   > Jonathan Kanter, assistant attorney general for antitrust, argued during   
   > the Thursday news conference that Apple benefited from previous DOJ   
   > antitrust actions against Microsoft.   
   >   
   > “Apple itself was a significant beneficiary of that case,” Kanter said.   
   > “And the remedy paved the way for Apple to launch iTunes, iPod, eventually   
   > the iPhone, free from anti-competitive restrictions, excessive fees and   
   > retaliation.”   
   >   
   > The company is currently jockeying with the European Commission over   
   > whether it’s complying with the new EU Digital Markets Act, which forces   
   > Apple to open up the iPhone app store to rivals such as Microsoft or Epic   
   > Games. Apple plans to charge big companies that eschew its app store 50   
   > cents per download.   
   >   
   > Apple was fined $2 billion by the EU over a dispute with Spotify   
   >  about whether the music streaming service can link to its website and   
   > account system inside of its app.   
   >   
   > Apple had 64% of the market share for U.S. smartphones in the last quarter   
   > of 2023, versus 18% for Samsung, according to Counterpoint Research.   
   >   
   > Apple isn’t the only big tech company facing government scrutiny. The DOJ   
   > filed an antitrust case against Google in 2020 over its dominant search   
   > position and in another year over its advertising business. The DOJ also   
      
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