 Technology |
Technology |
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DOJ poses Apple's biggest antirust challenge |
Apple is set to face its biggest antitrust challenge yet as the Department of Justice (DOJ) targets the tech giant's alleged control of the smartphone market. |
Apple faced a high-profile antitrust challenge a few years ago by video game company Epic Games over the company's app store rules, and the tech giant mostly prevailed against the challenge. The wide-ranging claims posed in the government's latest complaint, however, will put Apple's rules to the test again over its control in the app market.
The complaint argues that Apple's creation of the iPhone ecosystem has given the company dominance over the market for smartphones, which are now ubiquitous across U.S. households. Apple is accused of creating services and products that only work best when used with Apple-run systems, using a "playbook" to maintain dominance across technologies ranging from its app store and messaging platform to smartwatches and digital wallets.
"It is the most significant challenge they've faced so far," said William Kovacic, former chair of the Federal Trade Commission (FTC).
Kovacic said the Epic Games case dealt with "crucial issues" involving the Apple system — and gave a glimpse into possible Apple defenses and brought to light materials through the discovery process — but the case filed against Apple by the DOJ and 16 states attorneys general last week is more important.
"The scope is broader; the range of behavior addressed is more expansive. And in some ways, there's greater significance to having the force of the government of the United States behind the case," he said.
The DOJ complaint makes five major allegations about Apple's conduct. Prosecutors argue the company blocked "super apps" that could transcend its own applications, suppressed mobile cloud streaming services, excluded cross-platform messaging apps, limited function of third-party smartwatches with Apple devices and hindered the use of third-party digital wallets.
Beyond the existing implementations of the alleged anticompetitive "playbook," the complaint alleges Apple has "every incentive" to follow that same pattern in the future as it expands.
The wide-ranging complaint could lead to impacts across industries based on how the lawsuit plays out, said Henry Hauser, a lawyer at Perkins Coie. Hauser previously worked as a trial attorney in the DOJ's antitrust division and as an attorney at the FTC's technology enforcement division.
"This would affect so many different markets — financial services, media, entertainment, gaming, telecommunications," Hauser said.
Apple has pushed back strongly on the allegations laid out in the DOJ's complaint and argued it would in effect create less competition.
"If successful, [this lawsuit] would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect," Apple said in a statement. Read more in a full report at TheHill.com. |
Welcome to The Hill's Technology newsletter, we're Rebecca Klar and Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley. |
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How policy will be impacting the tech sector now and in the future: |
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Amazon is getting rid of its "Just Walk Out" self-service technology at Amazon Fresh stores in the United States. The company told The Hill on Wednesday it is replacing the technology at stores that lets customers grab items and leave without waiting in a checkout line by tracking what they picked up with sensors and cameras. Instead, it will offer the "Amazon Dash Cart," which allows shoppers to "grab an item off the shelf, … |
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| Microsoft could have stopped Chinese hackers from accessing email accounts linked to U.S. government officials, a Biden-appointed review board said in a scathing report released Tuesday. The report, conducted by the Cyber Safety Review Board (CSRB), found "operational and strategic decisions" led to hackers in China breaching the officials' emails in July. The report outlined the company's failure in the breach and made recommendations … |
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Billionaire investor Steve Cohen said Wednesday the increase of artificial intelligence (AI) technology will help bring forward the four-day workweek. "My belief is a four-day workweek is coming," Cohen, the owner of the New York Mets, said Wednesday on CNBC's "Squawk Box." Cohen said that "between the advent of AI" and generally hearing "people are just not as productive on Fridays," the shorter workweek feels inevitable. … |
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The Federal Communications Commission (FCC) will vote later this month on restoring net neutrality rules that were rescinded under former President Trump, the agency's chair said Wednesday. If approved, the proposal would restore the Obama-era rules that barred broadband providers from blocking or throttling internet traffic to some websites and speeding up access to others that pay extra. "The pandemic proved once and for … |
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News we've flagged from the intersection of tech and other topics: |
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Facebook launches TikTok-like video player |
Facebook is launching a full-screen, vertical video player — much like the format made popular by TikTok — for Reels, Facebook Live and long form videos, The Verge reported. |
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AWS lays off hundreds of workers |
Amazon Web Services (AWS), the e-commerce giant's cloud computing arm, is laying off hundreds of workers in its stores technology and sales and marketing divisions, CNBC reported. |
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Branch out with other reads on The Hill: |
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Scathing federal report rips Microsoft for shoddy security, insincerity in response to Chinese hack |
BOSTON (AP) — In a scathing indictment of Microsoft corporate security and transparency, a Biden administration-appointed review board issued a report Tuesday saying "a cascade of errors" by the tech giant let state-backed Chinese cyber operators break into email accounts of senior U.S. officials … |
NEW YORK (AP) — Elon Musk’s X, the platform formerly known as Twitter, has named a new head of safety nine months after the last executive to hold the position departed from the social media company. X said that company veteran Kylie McRoberts will oversee the global safety team. The platform … |
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Two key stories on The Hill right now: |
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This is the first story in a series, “Fighting ‘Forever Chemicals’: Women face pervasive PFAS risks.” Jessian Choy had worn … Read more |
| Two brothers pleaded guilty in federal court Wednesday for their roles in a $22 million insider trading scheme connected to the company that took former … Read more |
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