What you should know
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- The U.S. Department of Justice is reportedly preparing to file an antitrust lawsuit against Apple, accusing the company of violating antitrust laws by restricting competitors’ access to certain iPhone hardware and software features.
- The lawsuit focuses on practices such as Apple’s control over iMessage, the preferential integration of the Apple Watch with iPhones, and the exclusion of third-party firms from Apple’s mobile payment system, which are alleged to stifle competition.
- In response to similar concerns in the EU, the Digital Markets Act (DMA) has mandated Apple to allow third-party in-app payment platforms, third-party financial firms to access the iPhone’s mobile-payment system, and support for non-WebKit-powered mobile browsers in the 27 EU countries.
- Despite efforts to comply with various regulations, including reducing its cut from third-party payment transactions and allowing a single link to third-party payment platforms, Apple faces criticism from developers and tech companies for its restrictive practices and the fees it imposes.
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Full Story
Oh boy, the DOJ’s gearing up for a showdown, and Apple’s in the crosshairs. Could be as early as tomorrow, they say. This isn’t just any lawsuit, though. It’s about Apple allegedly playing gatekeeper, keeping its rivals at bay from the iPhone’s goodies – both hardware and software.
Bloomberg spilled the beans first on Wednesday. And yeah, Apple’s danced with the DOJ in court before, but this time? It’s a whole different tune. They’re accused of some pretty underhanded tactics to keep the iPhone king of the hill.
Remember back in January? The whispers were already floating around that the DOJ had Apple in its sights. The beef? Apple’s been making it tough for any other tech to square up against the iPhone. The New York Times threw in some examples like the whole iMessage lockdown, the Apple Watch playing favorites, and Apple’s mobile payment system giving the cold shoulder to third-party competitors.
But here’s a twist – the EU’s been poking around in this too. They passed the Digital Markets Act (DMA), throwing some new rules Apple’s way. Now, in the EU at least, Apple’s gotta play nice, letting third-party payment platforms and financial firms get a piece of the iPhone action. They even have to open up to non-WebKit browsers. Last month, Bloomberg caught wind that Apple tried to sweet-talk the DOJ out of suing. Looks like that didn’t go as planned, huh?
Developers got a small win, being able to link to third-party payments in their apps. But Apple’s still taking a slice, albeit a slightly thinner one. Epic’s not having it, though. They’re calling foul on the fees and the one-link rule, pushing for Apple to be held in contempt. And it’s not just Epic. Giants like Microsoft, Meta, X, and Match are all throwing shade at Apple for keeping tight reins on app payment info.
Despite the looming legal storm, Apple’s stock was actually doing pretty alright, bouncing back up in a booming tech market. But then, the Bloomberg report hit, and bam – their shares took a dive in after-hours trading.
So, what’s next? Guess we’ll find out soon enough. But one thing’s for sure – it’s never dull in the tech world.
