The US Department of Justice is preparing to file an antitrust lawsuit against Apple Inc. as early as March, according to anonymous sources familiar with the case. The lawsuit is based on allegations that Apple has imposed limitations on its iPhones and iPads through software and hardware measures, effectively hindering competition from rivals. This echoes concerns raised by companies like Spotify, Tile, and Beeper, who have accused Apple of creating unfair advantages for itself. While the Justice Department and Apple lawyers have already had discussions about a potential suit, the timing for filing could still be subject to change as senior officials within the agency have yet to sign off on the complaint. The DOJ has been investigating Apple since 2019 but opted to prioritize its cases against Google.
If an antitrust lawsuit against Apple were to proceed, it would mark the fourth case pursued by US antitrust enforcers as part of the Biden administration's crackdown on tech giants. This move follows similar actions against Meta Platforms Inc and Amazon.com Inc. Both the Justice Department and Apple declined to comment on the matter.
Interestingly, on Tuesday, the Supreme Court denied appeals by Apple and Epic Games Inc., effectively concluding an antitrust lawsuit over Apple's App Store. The trial judge in that case ruled that Apple's App Store rules did not violate federal antitrust laws but found the company's restrictions on developer communications to be a violation of California state antitrust law. The decision by the Supreme Court had been awaited by the Justice Department before it moved forward with its own actions in the matter.
Additionally, European regulators have been closely monitoring Apple's activities as the bloc prepares to enforce new digital gatekeeper rules from March 7. These rules aim to prevent major tech firms from prioritizing their own services over those of competitors and require companies to allow users to download apps from alternative platforms. Apple's App Store has been designated as falling under these regulations, although the company is currently appealing the decision.
In response to the Supreme Court's decision, Apple announced that it will permit developers to use alternative payment systems while imposing a 27% fee on most digital purchases or a 12% fee on subscriptions. Epic Games, however, plans to contest Apple's proposed remedy, arguing that it is insufficient and will effectively prevent developers from lowering consumer prices.
As reported earlier by The New York Times, the imminent antitrust suit by the Justice Department against Apple signals the culmination of years of investigation and legal efforts, further highlighting the government's growing scrutiny of the tech industry's dominant players.