Apple antitrust suit mirrors strategy that beat Microsoft, but tech industry has changed
The US government has filed an antitrust lawsuit against Apple, accusing it of unlawfully monopolizing the smartphone market through restrictions on app developers, which allegedly forces consumers to pay higher prices and curbs choice and innovation. The Department of Justice, along with 15 state governments, claims Apple’s practices harm competition in areas such as “super apps,” cloud streamed gaming apps, messaging apps, smartwatches, and digital wallets. Apple counters that the government’s accusations are factually and legally incorrect. Legal experts note differences between this case and the 1998 case against Microsoft, highlighting that Apple’s market share and competition dynamics, particularly with Android, make the case more challenging for the government. In 2021, a federal judge ruled in favor of Apple in an antitrust case brought by Epic Games, finding that Epic failed to prove Apple users were “locked-in” to their iPhones. The lawsuit reflects the DOJ and the Biden Administration’s Federal Trade Commission’s willingness to pursue significant antitrust cases.
