US Antitrust Charges Loom Over Apple as the Next Potential Big Tech Target

US Antitrust Charges Loom Over Apple as the Next Potential Big Tech Target

Apple Inc., the world’s most valuable company, is reportedly on the brink of facing a massive antitrust lawsuit from the U.S Department of Justice (DOJ), according to The New York Times. A potential lawsuit could mark a turning point in Apple’s 48-year history, as significant as the return of Steve Jobs or the invention of the iPhone.

The DOJ’s investigation, which is in its final stages, is scrutinizing Apple’s tightly controlled ecosystem that has turned it into a $2.8 trillion behemoth. The probe reportedly focuses on the seamless integration between the iPhone and Apple Watch, the company’s digital payment system, and Apple’s use of green text bubbles to differentiate Android text messages from iMessage communications.

Despite the popularity of Apple’s products among consumers, the tech giant has attracted criticism from app makers, rivals, and policymakers who accuse the company of locking users into its ecosystem and forcing competitors to accept restrictive terms to reach Apple’s users.

Apple’s shares have slipped amidst these reports, marking a rocky start to 2024. Moreover, the company is also grappling with the fallout from a court order to face a private antitrust lawsuit by payment card issuers, who accuse Apple of thwarting competition.

US Antitrust Charges Loom Over Apple as the Next Potential Big Tech Target

In addition to these challenges, Apple is currently fighting a ban on sales of the latest version of its smartwatch after it allegedly infringed on a rival company’s patent. A US appeals court granted Apple a temporary reprieve last month and blocked the ban while the legal process plays out.

Apple also faced heat on Capitol Hill over its decision to shut down an app called Beeper, which allowed Android devices to text iPhone users through iMessage. A bipartisan group of lawmakers asked the DOJ last month to investigate whether the move violated antitrust law.

As regulatory pressure mounts, the outcome of these legal battles will have far-reaching implications for Apple and the broader tech industry. While the probe is in its final stages and top DOJ leaders are in the process of examining its findings, no final decision on whether to file a suit has been made.

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