Apple is on the verge of becoming the latest major technology company to confront antitrust allegations in the United States. DOJ is wrapping up its antitrust inquiry into Apple, focusing on the company's enclosed ecosystem.
Wrapping up Antitrust Inquiry into Apple
The US Department of Justice (DOJ) is reportedly gearing up to file an extensive antitrust lawsuit against Apple within the next six months, as indicated by recent reports from The New York Times.
Engadget reported that the DOJ's investigation is said to be in its final stages, honing in on Apple's control over both hardware and software services.
The focus centers on the perceived impact of Apple's "walled garden" strategy, which is alleged to create obstacles for competitors and hinder customers from transitioning to alternative products.
According to sources familiar with the ongoing discussions, the investigation has broadened beyond its initial scope. It now encompasses various aspects, including a closer examination of the interconnectedness between the Apple Watch and iPhone services compared to rival wearables.
Additionally, the inquiry delves into allegations of how Apple's practices restrict competing platforms from accessing iMessage.
Encouraging DOJ
Representatives from Beeper, entangled in a public dispute with Apple last year over the iPhone maker's blocking of iMessage integration on Android, reportedly engaged in discussions with investigators.
Tile, a longstanding producer of Bluetooth trackers predating the AirTag, is also said to have met with the DOJ. The agency is reported to have held conversations with representatives from banking and payment apps regarding Apple's practice of preventing rivals from utilizing tap-to-pay on the iPhone.
Furthermore, Meta is reported to have participated in discussions with investigators, actively encouraging the DOJ to scrutinize Apple's App Tracking Transparency (ATT) privacy tool during these meetings.
Launched in 2021, ATT allows users to restrict advertisers' data collection, with Meta expressing concerns in 2022 that it could incur a $10 billion cost that year due to this feature.
According to The New York Times, investigators have delved into Apple's share of digital purchases made on the iPhone, a matter that Spotify, Epic Games, and Match Group, a dating corporation, have vocally raised concerns about in recent years.
At present, the federal government is actively engaged in addressing antitrust matters involving major tech companies. DOJ is actively pursuing dual antitrust cases against Google, one focused on search and the other on advertising.
Amidst the current landscape of antitrust concerns, The Verge reported that Apple is not the sole Big Tech company in the spotlight.
Amazon faced a substantial antitrust lawsuit filed by the Federal Trade Commission (FTC) last year, and in December, Google reached a settlement of $700 million to resolve antitrust charges.
Meanwhile, Microsoft continues to undergo scrutiny from the FTC concerning its acquisition deal with Activision Blizzard.
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