Poll of the Day > the us department of justice sues apple over iPhone monopoly

(+) Yeah! (+)

https://www.cnbc.com/2024/03/21/doj-sues-apple-over-iphone-monopoly.html

The Department of Justice sued Apple on Thursday, saying its iPhone ecosystem is a monopoly that drove its astronomical valuation at the expense of consumers, developers and rival phone makers.

The government has not ruled out breaking up one of the largest companies in the world, with a Justice Department official saying on a briefing call that structural relief was on the table if the U.S. were to win.

The lawsuit claims Apples anti-competitive practices extend beyond the iPhone and Apple Watch businesses, citing Apples advertising, browser, FaceTime and news offerings.

Each step in Apples course of conduct built and reinforced the moat around its smartphone monopoly, according to the suit, filed by the DOJ and 16 attorneys general in New Jersey federal court.

Apple shares fell more than 4% during trading Thursday. A breakup of Apple if successful would be one of only a handful of breakups under the Sherman Act. The DOJ has considered using it in other antitrust cases, but has not done so since the breakup of the Bell System in 1982.

The Justice Department said in a release that to keep consumers buying iPhones, Apple moved to block cross-platform messaging apps, limited third-party wallet and smartwatch compatibility, and disrupted non-App Store programs and cloud streaming services.

The challenge represents a significant risk to Apples walled-garden business model. The company says that complying with regulations costs it money, could prevent it from introducing new products or services, and could hurt customer demand.

The lawsuit could force Apple to make changes in some of its most valuable businesses: The iPhone, in which Apple reported more than $200 billion in sales in 2023, the Apple Watch, part of the companys $40 billion wearables business, and its profitable services line, which reported $85 billion in revenue.

U.S. Attorney General Merrick Garland said at a news conference that the Supreme Court defines monopoly power as the power to control prices or exclude competition.

As set out in our complaint, Apple has that power in the smartphone market,
Garland said. If left unchallenged. Apple will only continue to strengthen its smartphone monopoly.

there's more, i can't be assed to copy/paste/format it

I don't think there is a "smartphone" monopoly given that Android exists and is #1 in mobile market share by a huge margin.

https://gs.statcounter.com/os-market-share/mobile/worldwide

Sure, Apple is #1 in hardware for mobile phones, but it isn't like they are killing competition.

https://www.counterpointresearch.com/insights/global-smartphone-share/

Still under 25%.

ConfusedTorchic posted...

The Justice Department said in a release that to keep consumers buying iPhones, Apple moved to block cross-platform messaging apps, limited third-party wallet and smartwatch compatibility, and disrupted non-App Store programs and cloud streaming services.

this is the reason

I sorta get where theyre coming from, but thats the reason I like Apple products. I like that everything works smoothly, that theres not a thousand different kinds of phones and watches and headphones and browsers and app stores and blah blah blah. I like the ease of messaging on iMessage and calling someone on FaceTime and using my Apple Wallet at the store - not having to worry about downloading WhatsApp or telegram or zoom or Skype or every business individual apps to scan codes to pay for things. I like that I can pick up an iPhone or Macbook anywhere and it works and looks and feels like mine. Forcing them be more competitor friendly is not what I want.

i can understand why ppl dont like those things, but I know a lot who do.

It's not like most people dont have androids anyway, or that 80% of computers are Macs.

you can actually just replace "apple" with "android" or "samsung" in your post and it would be the goddamn exact same lmao

ConfusedTorchic posted...

this is the reason

It is really just the business model of computers back in the 70's that Apple never grew out of. It is one of the reasons I don't like using them, if you use one product, you have to use ALL their products. Nothing is going to work smoothly together unless everything you buy is an Apple product.

But I still don't think it is worth trying to sue them over, I just don't spend my money on their stuff. "Monopoly" implies I have no choice but to spend my money on their stuff.

ConfusedTorchic posted...

you can actually just replace "apple" with "android" or "samsung" in your post and it would be the goddamn exact same lmao

Yes and?
i like the Apple feel and aesthetic more. Others prefer Android. Samsung isnt the one being sued.

Iphones are over priced trash used as a status symbol. Never understood it.
Dikitain posted...

I don't think there is a "smartphone" monopoly given that Android exists and is #1 in mobile market share by a huge margin.

https://gs.statcounter.com/os-market-share/mobile/worldwide

Sure, Apple is #1 in hardware for mobile phones, but it isn't like they are killing competition.

https://www.counterpointresearch.com/insights/global-smartphone-share/

Still under 25%.

In the us apple is around 60%, world wide android is dominant because it's basically all you can get in "poorer" countries.

Having been said I don't understand why the government is suing. My only guess is retaliation because apple won't give a backdoor to law enforcement?

it's probably a lot more mundane than that tbh

i bet it's just they aren't allowed to put their own apps on there for various whatevers, and some higher up people are likely apple-only

Apple has monopolistic tendencies, but the smart phone market is pretty healthy with many alternatives. It does not have the oppressive monopoly power that you find in other industries.