Why US justice department is considering antitrust suit against Apple
The United States (US) Department of Justice might soon file an antitrust case against Apple. It alleges that the tech giant is making it difficult for consumers to switch devices and for rival manufacturers to compete. This information comes from The New York Times, which cited anonymous sources, as the investigation is still underway. Apple has met with the department multiple times to discuss the investigation. Moreover, the company denied the accusations and asserted its business practices are legal.
What are the key areas of investigation?
The Department of Justice (DOJ) is looking into various aspects of Apple's business, such as the Apple Watch's compatibility with iPhones, the exclusion of competitors from the iMessage platform, and Apple's mobile payment system hindering competition from other financial firms.
Apple's defense and CEO's previous response
In response to the accusations by the DOJ, Apple reportedly claimed that its business practices do not violate antitrust law. The company said its goal was to "grow the pie" and create more opportunities for everyone, including artists, creators, and entrepreneurs. To recall, during testimony before a congressional antitrust committee in 2022, Apple CEO Tim Cook claimed, "Apple does not have a dominant market share in any market where we do business."
iPhone continues to dominate amid declining market share
As the DOJ's investigation into Apple's practices intensifies, the company's business has been experiencing a decline. Last fiscal year, Apple reported revenue of $383 billion, marking a 2.8% annual decline and its first fiscal year decline since 2019. However, the iPhone continues to dominate the premium phone market, with a global market share of 71% for phones priced at $600 and up.
