via Project DisCo After months of speculation and a four-year investigation, the Department of Justice’s (DoJ) Antitrust Division, alongside multiple state & district attorneys general, filed a lawsuit against Apple. In its suit, the DoJ is accusing the company of violating antitrust laws by blocking rivals from accessing hardware and software features of its iPhone. This is the most recent example of U.S. authorities taking a more interventionist approach to innovative markets, following other digital sector lawsuits by the DoJ and the FTC last fall.
This lawsuit marks the third time the DoJ has targeted Apple in the last 15 years. However, it is the first instance where the DoJ alleges that the company is maintaining a monopoly position illegally. Here, the DoJ contends that Apple has leveraged its products to ensure the iPhone keeps its position in the device market. Some of the alleged conduct include the Apple Watch’s performance with iPhones and other smartphones, Apple’s limits for its iMessage service with other devices, and Apple’s payments system on the App Store.
These features have been a key differentiator of the iOS ecosystem for consumers: a managed, integrated, seamless experience that “just works.” Consumers that prefer more open ecosystems have alternatives to choose between, which compete against the more curated iOS environment. Depending on what consumers most desire, they choose between ecosystems, trading off different attributes depending on their needs.
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