The American Department of Justice is considering filing an expanded antitrust lawsuit against Apple Inc. According to sources familiar with the matter, the lawsuit may be filed as early as the first half of 2024. The investigation, which began in 2019, is nearing its end and aims to determine whether Apple employed unfair tactics to protect the dominant position of the iPhone in the market. Initially focused on the smartphone market, officials have also examined other segments in which Apple competes, including wearable technologies.
One of the main issues is the allegation that the integration of Apple Watch with iPhones gives the company an unfair competitive advantage over smartwatches from other manufacturers. The controversial topic also involves Apple’s Tap to Pay technology, which allows users to make payments by simply tapping their Apple device on the merchant’s iPhone. Discussions with banks and payment app providers revolve around the alleged denial by Apple to make this technology available to companies competing with its own mobile payment system. This restriction has also caught the attention of antitrust officials in the European Union.
The Department of Justice has also examined the ban on cloud gaming services in the App Store and the integration between iPhones and the AirTag tracking device. The higher level of integration offered by Apple is being analyzed in comparison to the integration offered by competitors.
During the course of the investigation, representatives of the Department of Justice have met with Apple representatives multiple times. Another meeting is planned before the potential filing of the antitrust lawsuit. The solutions that will be adopted may also be influenced by the ongoing antitrust proceedings in the European Union, especially regarding the App Store and Tap to Pay technology.
In order to avoid facing an antitrust fine from the EU, Apple has reportedly offered to implement certain changes in its business practices related to Tap to Pay. The outcome of the investigation could have significant consequences for Apple’s practices in the mobile market and the company’s ability to maintain its dominant position.
Frequently Asked Questions (FAQ)
1. When does the Department of Justice anticipate filing an antitrust lawsuit against Apple?
The Department of Justice anticipates that the antitrust lawsuit against Apple may be filed as early as the first half of 2024.
2. What are the allegations against Apple in the antitrust case?
The main allegations against Apple involve unfair competitive advantage through the integration of Apple Watch with iPhones and the refusal to make the Tap to Pay technology available to other competing firms.
3. What consequences could the outcome of this investigation have for Apple?
The outcome of this investigation could have significant consequences for Apple’s practices in the mobile market and the company’s ability to maintain its dominant position.
Definitions
Antitrust Lawsuit
A lawsuit filed by organizations or institutions claiming that a company has acted unfairly or monopolistically, violating antitrust laws.
Integration
The process of combining different technologies, devices, or software to provide better performance, efficiency, or functionality.
Source
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