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U.S. sues Apple, accusing it of maintaining an iPhone monopoly

nytimes.com

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Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#41

How do you think Apple will differentiate their case from United States v. Microsoft Corp. , where Microsoft was implicated for almost identical monopoly misconduct? The complaint literally says verbatim, "But after launching the iPhone, Apple began stifling the development of cross-platform technologies on the iPhone, just as Microsoft tried to stifle cross-platform technologies on Windows."

One of the big factors was that Microsoft were doing things like paying OEMs to not include other browsers. This was also the crux of the issue in Epic v Google recently.

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#42
post #18

As an iPhone user I am willing (and believe I am) paying Apple a premium for a well curated and reviewed App Store (vs android). I just wish they would stop “double dipping “ and charging far in excess of their costs (and in excess of reasonable profit) to the app sellers.

You should be allowed to stay inside Apple's walled garden while the rest of users should be allowed to leave it whenever they want (at the very minimum at their own risk).

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#43

> The Justice Department, which began its investigation into Apple in 2019, chose to build a broader and more ambitious case than any other regulator has brought against the company. As I was reading the specific charges detailed in the article, I was thinking this case seems like a stretch and will be difficult to prove. Apple will argue that security and/or performance reasons drove their decisions related to brows…

The US government has let its definition for monopolistic behavior slip so much over the last few decades I don't think you could successfully prosecute for anything short of sending thugs to break your competitors' kneecaps. The days when the DOJ would prosecute a company for including a web browser with an OS are long gone.

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#44
Apple has about 60% of the smartphone market in the US, and about 25% globally. That's a pretty big stretch to call it a monopoly. There are many non-apple phone options that many consumers easily avail themselves of. And at least one other OS choice as well. All of these are fully supported by the entire ecosystem of telcos.

Seems like bullying to score political points to me.

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#45

How do you think Apple will differentiate their case from United States v. Microsoft Corp. , where Microsoft was implicated for almost identical monopoly misconduct? The complaint literally says verbatim, "But after launching the iPhone, Apple began stifling the development of cross-platform technologies on the iPhone, just as Microsoft tried to stifle cross-platform technologies on Windows."

iOS started out closed and stayed that way for various reasons. Windows OS started with the ability of users to make various choices. One of those choices had to do with web browsers. MS's crime was "the legal and technical restrictions it put on the abilities of PC manufacturers (OEMs) and users to uninstall Internet Explorer and use other programs."

https://en.wikipedia.org/wiki/United_States_v._Microsoft_Cor....

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#46
post #6

IANAL but it's baffling to me that this one took so long. This has been the clearest-cut abuse of monopoly in tech for a long time. Why did they waste time trying to convince judges that "free" could be monopoly pricing, when this was in broad daylight?

Isn't part of the problem how US anti-monopoly law is worded requiring proof of "consumer harm" which is normally measured in increased costs? In the case of Apple's monopoly, its not clear how you would measure that let alone prove it to a court.

Here is a recent example of consumer harm posted to HN: https://news.ycombinator.com/item?id=39773736

> I am curious though, why is the iOS version €4.99 but the Android version is free ? I've seen this a lot actually and have always wondered, I figured it might just be Apple's annual developer license fee but not sure.

Apple users are being forced to pay more for equivalent software because of Apple's tax.

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#47
post #31

How do you think Apple will differentiate their case from United States v. Microsoft Corp. , where Microsoft was implicated for almost identical monopoly misconduct? The complaint literally says verbatim, "But after launching the iPhone, Apple began stifling the development of cross-platform technologies on the iPhone, just as Microsoft tried to stifle cross-platform technologies on Windows."

yes safari is preinstalled but on an iphone you aren't allowed to install another browser (in this jurisdiction) so there's technically no precedent yet

Nit: you can install other browsers, but not other browser engines.

It might prove to be a significant difference in terms of how it affects competitors as a product.

Re: U.S. sues Apple, accusing it of maintaining an iPhone monopoly

#50

How do you think Apple will differentiate their case from United States v. Microsoft Corp. , where Microsoft was implicated for almost identical monopoly misconduct? The complaint literally says verbatim, "But after launching the iPhone, Apple began stifling the development of cross-platform technologies on the iPhone, just as Microsoft tried to stifle cross-platform technologies on Windows."

Is Apple even a monopoly though? In the Microsoft case Microsoft had 90+% of desktop market share. (And propped Apple up to create even a semblance of competition.) They were accused of leveraging that position to prevent manufacturers etc from getting out of line.

Apple, on the other hand shares the market with Android. Globally it's a minority share. Yes, in the US, Apple has a bigger market share than it has globally, but Android is a real competitor even there. So I'd suggest the two situations are quite different.

If it's not a monopoly (which would be fine by itself anyway), it's hard to make the case that they are leveraging that monopoly in unhallowed ways.

All that said, clearly the DOJ think they have a case, and I imagine they've spent a LOT of man-hours thinking about it and forming an argument. More than the no-time-at-all I've spent thinking about it.

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