The tech world is abuzz with the latest developments in the ongoing saga between Apple and regulatory authorities. The United States Department of Justice (DOJ), along with 16 states and the District of Columbia, has taken a bold step byfiling an antitrust lawsuit against Apple.
At the heart of the matter lies the accusation that Apple has violated antitrust laws through practices aimed at maintaining its stronghold over the smartphone market. The lawsuit, spanning a comprehensive 88 pages, outlines a series of grievances against Apple, targeting its efforts to stifle competition and preserve its dominance.
At the heart of the matter lies the accusation that Apple has violated antitrust laws through practices aimed at maintaining its stronghold over the smartphone market.
This isn’t Apple’s first brush with the legal system; just recently, the company wasbanned from selling the Apple Watch Series 9 and Watch Ultra 2in the US because of a patent dispute, leading the company to disable the blood oxygen sensor in its popular smartwatches. The new lawsuit represents the federal government’s most significant challenge yet to the California-based tech giant, but what does it mean for consumers? Here are five potential changes Apple might have to make if the DOJ succeeds in its endeavors.
Apple Watch ban: Everything you need to know
What Apple’s ITC ban means for current Apple Watch owners, and how we got here.
1Opening up to competing applications
New apps could be coming to the App Store
One of the central allegations leveled against Apple is its purported suppression of competing applications. The government contends that Apple’s policies prevent other companies from offering applications that could rival Apple’s own products, such as its digital wallet. According to the lawsuit, this limitation not only stifles innovation but also hampers consumer choice, ultimately resulting in higher prices and less variety in the marketplace.
The lawsuit challenges Apple’s monopoly over digital wallets by accusing the company of thwarting the development of alternatives.Apple Wallet, the proprietary app for contactless payments, enjoys exclusive access to the Near Field Communication (NFC) chip in iPhones, effectively sidelining potential competitors.
So, could iPhone users soon have access toGoogle Wallet? That is yet to be seen, but if the DOJ prevails, Apple may be compelled to open up its platform to third-party digital wallet providers, fostering greater competition and innovation in this space.
2Facilitating interoperability
That means making Apple compatible with other brands
Apple’s tight control over its ecosystem has long been a point of contention. Critics argue that by restricting compatibility with devices and services from other manufacturers, Apple creates an uneven playing field. The government’s lawsuit takes aim at this practice, particularly highlighting Apple’s efforts to hinder messaging across different smartphone operating systems and its reluctance to collaborate with competing smartwatch brands.
If proven true, Apple could have to alter the hardware of its devices, or it might have to share information about the iPhone with other smartwatch competitors to ensure compatibility across brands.
What that entails for Apple is unclear. For example, the DOJ alleges that Apple intentionally made the iPhone incompatible with all smartwatches other than the Apple Watch. If proven true, Apple could have to alter the hardware of its devices, or it might have to share information about the iPhone with other smartwatch competitors to ensure compatibility across brands. That would be a theoretical benefit to consumers, but Apple would likely argue that optimizing the iPhone for non-Apple devices dilutes the quality of its own brand.
Another potential change could be forcing Apple to bring iMessage to other platforms, such as Android, or at the very least increase interoperability with other messaging services, such asRCS, whichApple has already saidwill be integrated into the Messages app in 2024.
3Allowing game streaming apps
Cloud gaming services coming to Apple?
Another contentious issue raised in the lawsuit is Apple’s refusal to permit game streaming apps on its devices. Streaming apps have the potential to transform the iPhone into a versatile gaming platform, offering users access to a vast array of titles. In 2020, Apple allowed game streaming apps, but only ifevery game in the catalog was reviewedby the App Store team. More recently, when Apple announced App Store changes in the EU, the company also said it’d allow game streaming apps worldwide. However, no streaming apps are currently available.
Major changes coming to iPhone’s App Store and what that means for you
Third-party app stores and streaming apps are coming to the iPhone, but US users will likely be disappointed.
By blocking such apps, Apple not only limits consumer choice but also undermines the iPhone’s appeal as a gaming device, according to the DOJ. Regardless of what happens with the DOJ, it appears gamers will eventually get access to services similar toXbox Game Pass UltimateorGoogle Stadiaon their Apple devices based on recent changes by Apple. However, it’s curious this remains part of the suit.
4Fostering super apps
One app to rule them all
The concept of “super apps,” which integrate multiple functionalities within a single application, has gained traction in recent years. However, Apple has been accused of impeding their development in a bid to safeguard its own interests. By preventing competitors from creating super apps that could rival its ecosystem, Apple effectively maintains its dominance. Should the DOJ succeed, Apple may be compelled to relax its restrictions, allowing for a more diverse and competitive app landscape.
It’s likely only a matter of time before we start seeing services offering text messaging, video calling, game streaming, location sharing, and mobile payments all in a single app.
Also called “everything apps,” super apps like WeChat and LINE are already massively popular across Asia. It’s likely only a matter of time before we start seeing services offering text messaging, video calling, game streaming, location sharing, and mobile payments all in a single app.
5Reevaluating security vs compatibility
Apple’s security protocols will have to change
One of the key arguments in Apple’s defense has been its commitment to user privacy and security. The company contends that its stringent policies are necessary to protect consumers from malware and fraud. However, the government aims to challenge this narrative by demonstrating how Apple’s practices actually undermine competition and harm consumers. As the case unfolds, Apple may find itself at a crossroads, forced to strike a balance between security concerns and the need for greater compatibility with rival products and services.
The resolution of this case will shape the future landscape of innovation, competition, and consumer choice in the digital age.
Ideally, opening the door for competition shouldn’t result in a glut of poor-quality, unsecured apps. At a minimum, consumers can expect an email from Apple about updates to their privacy and security policies. The outcome of this lawsuit has far-reaching implications not only for Apple but also for the broader tech industry. If the DOJ succeeds in its efforts to rein in Apple’s perceived anticompetitive practices, it could set a precedent for future regulatory actions against other tech giants. Ultimately, the resolution of this case will shape the future landscape of innovation, competition, and consumer choice in the digital age.
iOS 17.4 adds virtual card numbers for Apple Cash. Here’s how to use it
As of iOS 17.4, Apple’s Venmo alternative now offers you a way to use your Apple Cash even in places where Apple Pay isn’t accepted.
