Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at a recent filing by the United States Department of Justice against Apple over their targeting of crypto apps with unfair rules.
U.S. DOJ Lawsuit
A civil antitrust lawsuit has been filed against Apple in the United States but the Department of Justice (DOJ) and 16 state and district attorneys general. The suit accuses the technology giant of monopolising or attempting to monopolize smartphone markets in violation of Section 2 of the Sherman Act.
Given that Apple is a publicly traded company with its headquarters in California, and has generated significant revenues in fiscal year 2023, the company has surpassed that of many countries’ gross domestic products.
The lawsuit, which was filed in the US District Court for the District of New Jersey, notes how Apple is accused of illegally controlling the smartphone market by imposing restrictive contracts on developers and limiting their access to essential points.
The potential monopoly prevents the development of crypto apps, products, and services that could reduce dependence on iPhones, promote compatibility with other platforms, and lower costs for consumers and developers, according to the filing. The DOJ alleges that Apple has made use of its dominant positions to extract more money from various parties, such as consumers, developers, artists, and small businesses.
In a press conference last Thursday, the 21st of March 2024, U.S. attorney general Merrick Garland noted:
“Apple has maintained its power not because of its superiority but because of its unlawful exclusionary behaviour. Monopolies like Apple threaten the free and fair markets upon which our economy is based.”
The DOJ has also noted that Apple’s policies have unfairly eliminated alternative payment systems and spotlighted the 30% fee it imposes on apps and in-app purchases despite not being the app developer. It is claimed this fee along with Apple’s exclusive support for fiat currencies in its payment systems has caused problems for integrating cryptocurrencies in apps. This means many crypto-based apps have found it economically unfeasible to offer in-app purchases within the Apple ecosystem.
Officials in the government have also alleged that the smartphone company has refused to support cross-platform messaging apps, limited third-party digital wallets and non-Apple smartwatches. They have also blocked mobile cloud streaming services, among other tactics, to preserve its dominance over the smartphone market.
Apple also allegedly restrict iPhone users and developers from accessing alternative app stores with its current practices. Alternative stores could compete with Apple's fees, and the DOJ feel that Apple arbitrarily enforces its App Store rules and penalises developers who use technologies that could disrupt its monopoly power.
The likes of nonfungible token (NFT) marketplaces like OpenSea have disabled certain features on their iOS apps because of the 30% fee, while a Bitcoin-friendly social app called Damus removed its Bitcoin tipping feature once Apple delisted the app for not using its in-app payments system.
The control Apple exerts extends to web apps accessed through iOS devices which are required by iOS web browsers to use its WebKit browser engine. The DOJ has also accused Apple of denying access to competing digital wallets, while also preventing developers from providing customers with payment services.
Officials leading the case have also stressed that no company should be above the law, no matter how big they are. They are also determined to enforce antitrust laws to protect consumers and promote fair competition in the market.
Apple responded to the lawsuit by noting:
“This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it."
The spokesperson from Apple noted that the DOJ’s complaint is inaccurate and that they will vigorously defend against it, while they believe the lawsuit could set a dangerous precedent by giving the government excessive control over technology design. If the DOJ lawsuit wins it could mean more options for iOS users while also giving more power for developers to integrate cryptocurrencies into their apps.
Have a great day.
Peace. CryptoGod-1.
Referral Links and Follow Me:
