The U.S. Justice Department is reportedly nearing the final stages of an investigation into Apple, with the possibility of filing a comprehensive antitrust lawsuit targeting the company’s strategies to maintain iPhone dominance, as early as the first half of this year.
This information comes from three individuals with knowledge of the matter, reports the New York Times.
The focus of the investigation is on how Apple has leveraged its control over iPhone’s hardware and software, making it challenging for consumers to switch away from its devices and for competitors to offer similar services.
Key areas under scrutiny include the compatibility of the Apple Watch with iPhones, exclusion of competitors from iMessage, and restrictions on Apple’s payment system for the iPhone.
Senior leaders in the Justice Department’s antitrust division are currently reviewing the investigation’s findings. Although officials have met with Apple, including a meeting in December, no final decision has been made regarding the filing of a lawsuit or its contents. Apple has yet to have a conclusive meeting with the Justice Department before any potential lawsuit filing.
The potential lawsuit against Apple could be more expansive than previous challenges, targeting its business model that integrates the iPhone with other devices and services like the Apple Watch and Apple Pay. Rivals have claimed they are denied access to key Apple features like the Siri virtual assistant, arguing these practices are anticompetitive.
The investigation, which began in 2019, has expanded to cover a broader range of Apple’s business interests than previously reported. It includes scrutiny of Apple’s restrictions on cloud gaming apps in the App Store, conversations with companies like Tile and Beeper about competition with Apple products, and discussions with banks and payment apps about iPhone’s tap-to-pay function limitations.
The investigation also examines Apple’s App Tracking Transparency tool and its impact on advertisers, with companies like Meta expressing concerns about its anticompetitive nature. The Justice Department’s last lawsuit against Apple was in 2012, related to digital book pricing, resulting in a $450 million settlement.
Separately, EU antitrust chief Margrethe Vestager will meet with Apple CEO Tim Cook in the U.S. next week, plus also with executives from Alphabet, Broadcom, Nvidia and OpenAI, reports Reuters. European regulators are expected to enforce new rules under the Digital Markets Act, while the EU is also continuing its investigation into Apple’s App Store fees.
