According to a Bloomberg News story on Wednesday, the U.S. Department of Justice (DOJ) is preparing to sue Apple. The lawsuit, expected to be filed as soon as Thursday, alleges that Apple violated antitrust laws by restricting competitors’ access to the iPhone’s hardware and software capabilities.
Republican and Democratic agreement on a few issues has been to take action against Big Tech. During the Trump administration, the Justice Department and Federal Trade Commission (FTC) launched investigations into Google, Facebook, Apple, and Amazon. These investigations concluded in 2021.
Requests for response from Reuters were not immediately answered by Apple or a DOJ representative.
It’s unclear what the allegations would center on. However, hardware manufacturers, such as Tile, a company that makes smart trackers, have long complained to Apple about limiting their ability to use the iPhone’s sensors while creating rival goods with more access.
Some years after Tile had been selling a comparable product, Apple entered the market with AirTags. These tags, which can be attached to objects like vehicle keys, aid customers in locating them when lost.
In a similar vein, Apple has limited user access to the iPhone’s contactless payment chip. The only way to add credit cards to the iPhone is through Apple Pay, which is a proprietary service.
For a considerable time now, Apple has asserted that it restricts third-party developers’ access to specific user data and components of the iPhone’s hardware. Moreover, this limitation is implemented due to security and privacy concerns.
The iPhone manufacturer has also come under fire for its exclusive iMessage service. The company has drawn criticism from some quarters for its practice of reducing the size of photographs and videos in messages sent to and from Android phones. However, it continues to implement this practice despite the backlash. Google has been promoting a new messaging system called RCS in an effort to enhance messaging across various device types. Apple announced this system last year.
According to a report from Bloomberg News, Apple representatives met with Justice Department officials late in February. Their aim was to convince the government not to bring an antitrust lawsuit against the company that makes iPhones.
According to Bloomberg, the Justice Department has filed three antitrust lawsuits against Apple in the last fourteen years. However, this is the first time the iPhone manufacturer is charged with unlawfully retaining its dominating position.
Apple and Epic Games, the company behind the “Fortnite” video game, are engaged in a legal battle over antitrust issues.
Earlier in the day, Elon Musk’s X, Microsoft (MSFT.O), Match Group (MTCH.O), Meta Platforms, and Epic Games joined Epic Games in protesting Apple’s disregard for a court-ordered injunction. They criticized Apple’s handling of payments within its lucrative App Store.
The companies responsible for popular apps in the App Store alleged that Apple was in “clear violation” of the injunction issued in September 2021. They claimed that Apple’s actions made it impossible for customers to find cheaper ways to pay for digital content. Consequently, this restriction hindered fair competition in the marketplace.
Since Democratic President Joe Biden assumed office, the Justice Department has filed two lawsuits against Alphabet’s Google. Initially, the lawsuit was related to the search engine company’s operations under Republican Donald Trump. Subsequently, another lawsuit was filed concerning advertising technology. During the Trump administration, the FTC filed a complaint against Facebook, and Biden’s FTC has continued to pursue the case.
Apple’s stock fell 1.5% to $175.97 during Wednesday’s extended session.
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