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DOJ vs. Apple: Antitrust Lawsuit Lacks Bite, Bloomberg Analysis Suggests

Daniel Kim Views  

Criticism has emerged, labeling the antitrust lawsuit filed against Apple by the U.S. Department of Justice as “outdated.” While it’s true that Apple restricts competitors with its closed ecosystem, proving that its monopoly has harmed consumers is challenging.

블룸버그 '美 법무부 애플 상대 소송 시대착오적'
An offline Apple store in Gangnam District, Seoul. Photo provided by Apple

On the 24th, a Bloomberg correspondent specializing in Apple, Mark Gurman, claimed in a newsletter, “The Department of Justice is missing more urgent issues by focusing on outdated matters in the Apple lawsuit.” He added, “Apple is a very oppressive company to suppliers and developers behind its friendly image and does not welcome openness or competition,” but “the Department’s lawsuit mainly relies on old claims, pointing out problems that Apple has already solved.”

Bloomberg saw it challenging for the U.S. Department of Justice to prove that Apple has harmed consumers. Fundamentally, consumers have the freedom to choose Android devices over iPhones. The Department’s points have already been resolved or contradicted. The Department of Justice cited Apple’s obstruction of “Super App” development, blocking streaming game services, and the monopoly of iMessage as reasons for the lawsuit. However, Apple had already abolished the first two policies in January and announced last year that it would introduce RCS within the year. Bloomberg evaluated the Department of Justice’s claim to prevent “monopoly” as ironic, saying, “The emergence of super apps that only large corporations can create harms small developers.”

Some of the arguments the Department of Justice put forward were considered “completely reasonable.” These include that the Apple Watch works best only on iPhones and that Apple blocked support for contactless payment apps using NFC other than Apple Pay.

Bloomberg also thought the U.S. Department of Justice should have focused more on the Apple App Store issue. The possibility of winning the lawsuit seems low due to the dispersion of firepower. Bloomberg wrote, “The fee structure, app review process, and developer guidelines are outdated systems rooted in the Steve Jobs era, which is 20 years ago and need a checkup,” and “Apple has an almost unlimited budget for lawyers and lobbyists, and CEO Tim Cook does not want a settlement, so a lawsuit does not seem like the best method.”

Daniel Kim
content@viewusglobal.com

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