Apple Denies Antitrust Violations in Response to DOJ Lawsuit
The US Department of Justice (DOJ) recently filed an antitrust lawsuit against Apple, accusing the tech giant of violating Section 2 of the Sherman Antitrust Act in five ways. Apple has publicly refuted all the claims, stating they are either inaccurate or misunderstand how their business operates.
Market Share Dispute
A central point of contention is how market share is defined. The DOJ claims Apple holds over 65% of the US market based on revenue. Apple counters that based on unit sales, they represent less than half the market.
Breakdown of DOJ Claims and Apple’s Responses
Contracts and Commissions: The DOJ alleges Apple restricts functionality for developers and limits access to APIs, hindering non-Apple apps. Apple argues these rules exist to protect users and don’t apply outside their platform. The DOJ’s issue with the 30% App Store commission is countered by Apple stating most developers don’t pay it, and many qualify for a reduced rate.
Super Apps: The DOJ claims Apple prevents “super apps” with broad functionality from existing on iOS. Apple refutes this, listing successful super apps like Facebook and WeChat already available.
Cloud Streaming Services: The DOJ argues Apple restricts cloud streaming services like game streaming. Apple maintains it allows such services and has even made changes to its guidelines to further support them.
Cross-Platform Messaging Apps: The DOJ views Apple’s control of SMS messaging as anticompetitive. Apple claims users haven’t expressed a desire for SMS outside of Messages, and popular Android platforms like WhatsApp don’t offer it either. Apple also highlights the upcoming adoption of RCS for improved Android-to-iPhone messaging.
Non-Apple Smartwatch Functionality: The DOJ alleges Apple restricts the functionality of non-Apple smartwatches. Apple argues the vast number of models and operating systems make broad compatibility technically difficult.
Digital Wallets: The DOJ claims Apple limits access to digital wallet technologies. Apple states its focus is on user security and offers APIs for third-party tap-to-pay functionality.
Switching to Android: The DOJ suggests Apple uses anticompetitive tactics to lock users into its ecosystem. Apple counters by highlighting its user-friendly data transfer options for switching to Android, and suggests customer satisfaction may be the reason users stay with Apple.
Comparison to Microsoft: The DOJ compared Apple’s practices to Microsoft’s historical antitrust case. Apple refutes the relevance of this comparison due to significant differences in market share.
Looking Ahead
This lawsuit is in its early stages, and appeals could extend for years. Both sides have made strong arguments, and the courts will ultimately decide whether Apple’s practices violate antitrust laws