US Department of Justice Takes Legal Action Against Apple for Alleged Anti-Competitive Practices in Smartphone and Smartwatch Industries

6 months ago 1372

The US Department of Justice has filed a lawsuit against Apple for allegedly impeding competition in the smartphone and smartwatch industries. This marks the second legal action against a major US tech company, following the ongoing case against Google.

The lawsuit is centered around five key allegations. The Justice Department claims that Apple's restrictions on 'super apps' - which combine various mini apps in one platform - limit competition, as these apps could reduce users' reliance on Apple's ecosystem if allowed. Apple's requirement for these mini apps to be listed separately in the App Store is seen as anti-competitive behavior.

Furthermore, cloud gaming providers are unable to develop iOS apps due to App Store rules, forcing them to operate through web browsers and putting them at a disadvantage compared to app-based services. This restriction hinders user experience for gamers who are unable to access certain games on their iPhones.

The lawsuit also takes issue with Apple's iMessage exclusivity, as other messaging apps cannot send or receive text messages and users are locked into using Apple's Messages client with iMessage. This creates a barrier for users looking to switch to alternative messaging platforms.

Apple's alleged ban on smartwatches from replying to messages is also under scrutiny, as it limits competition in the smartwatch market and favors Apple's own Apple Watch. By restricting the capabilities of third-party smartwatches in conjunction with iPhones, Apple is said to be stifling innovation and competition.

Additionally, Apple's refusal to allow payment methods from other companies to utilize the NFC chip in the Apple Watch is seen as an anti-competitive practice, as it limits competition in the mobile payment sector. This lawsuit could be the beginning of a lengthy legal battle against Apple, similar to the ongoing case against Google over alleged market dominance in advertising.