Apple is Expected to Face the Antitrust Lawsuit in the US Department of Justice
The New York Times has recently revealed that the US Department of Justice (DOJ) is finalizing its paperwork to file an antitrust lawsuit against the tech giant Apple. The main idea of the investigation revolves around Apple’s closed ecosystem, which is alleged multiple times to have followed anti-competition tactics to dominate the competitors. The critics have criticized the company multiple times stuck the audience in its locked ecosystem by narrowing down the choices for them. This anti-trust filing can significantly impact the reputation of the company as other giants, including Google and Amazon, suffered the same a bit ago.
Basis of Antitrust Lawsuit
Apple is one of the most valuable tech companies in the world, with total assets worth $2.7 trillion. The company has launched its ecosystem to make sure that users can have the best experience in it. However, this policy is always subject to controversy as critics often allege Apple for following anti-competitive practices. Thus, it dominates the competitors providing the same sort of products and services, resulting in a limited number of choices for users. Based on these reasons, the DOJ has announced the investigation. Also, the filing of this lawsuit is per the recommendation of the worthy US government to take down the unnecessary power of tech giants.
Current Situation
As per the New York Times, the DOJ has finalized its preparations to draft a potential anti-trust application against Apple. The primary focus of the application is Apple’s closed ecosystem, as it is alleged for anti-competitive practices. The lawsuit is expected to be filed by the end of 2023. However, it is necessary to confirm that the DOJ has not announced anything officially so far, and all the data is public through the help of third-party resources.
The Core of DOJ Investigation on Apple
As detailed previously, Apple has launched its own ecosystem with the App Store as the primary platform to get all the apps. The store will be focused first as it is the only way for iOS users to download their desired applications. Additionally, the company charges a massive 30% commission on all app sales and in-app purchases which is quite a significant sum for small app developers and companies. The charges also include that Apple manipulates the search algorithms to favor its own apps and services over the competitors to overcome them.
Furthermore, the DOJ will also look into Apple’s strategies used for blocking messages from other platforms than iMessage. The investigation will also confirm if iPhones are working better with Apple’s gadgets as compared to their performance with the ones manufactured by the other company. Above all, the tech giant is accused of preventing iPhone users from using third-party financial providers to make payments.
Consequences
In case the DOJ’s investigation is confirmed and Apple is found guilty of following all these anti-competitive practices, it results in significant penalties. Moreover, the company has to change its marketing strategies to avoid future allegations.
