Antitrust lawsuit alleges smartphone “monopoly” illegally maintained
THE UNITED STATES Department of Justice has filed an antitrust lawsuit against Apple for monopolization or attempted monopolization of smartphone markets in violation of Section 2 of the Sherman Act.
The DoJ lawsuit alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on developers and “withholding critical access points” from them. It claims Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers.
In particular, it accuses Apple of:
>Blocking “innovative Super Apps” —apps with broad functionality that would make it easier for consumers to switch between competing platforms. > Suppressing cloud–streaming apps and services that would allow users to enjoy games or apps “without having to pay for expensive hardware.”
> Making cross–platform messaging lower quality, less innovative, and less secure than its own platform, so that users “have to keep buying iPhones.” > Limiting the functionality of third– party devices so that Apple Watch buyers “face substantial costs if they do not keep buying iPhones.”
> Preventing third–party apps from offering tap–to–pay functionality, “inhibiting the creation of cross– platform third–party digital wallets.” Apple’s anticompetitive conduct, the DoJ says, extends to web browsers, video comms, entertainment, news subscriptions, advertising, automotive services, location services, and more.
Observers question whether any of this, or even all of it taken together, is illegal. The New York Times says Apple “plans to emphasize that competition laws permit it to adopt policies or designs that its competitors oppose, particularly when those designs make using an iPhone a better experience.” Antitrust lawyer Colin Kass, quoted by the NYT, adds: “Can the antitrust laws force a company to redesign its product to make it
