The Justice Department is reportedly within the “late stages” of filing a large antitrust lawsuit against Apple – the newest sign of mounting regulatory pressure that has roiled the iPhone maker.
The DOJ could file a lawsuit against Apple throughout the first six months of this 12 months, the Latest York Times reported on Friday, citing sources aware of the matter.
The feds are investigating whether Apple has leveraged its various hardware and software products to make sure the iPhone has a dominant hold on the smartphone market.
The probe is alleged to be focused on several specific elements of the Cupertino, Calif.-based company’s business — including whether the Apple Watch performs higher when linked to the iPhone versus rival smartphones, whether Apple is badly limiting competition for its iMessage text service.
Antitrust cops are also exploring Apple’s payments system for the iPhone and whether the corporate unfairly stifles rival services offered by competitors, the report said.
Apple shares were flat in Friday afternoon trading after news of the potential lawsuit surfaced – but the corporate’s stock has sunk greater than 6% this week after a pair of firms downgraded its rating over concerns about sagging iPhone sales demand.
Despite its recent struggles, Apple ranks because the world’s most precious tech company and last 12 months became the primary firm in history to surpass a $3 trillion valuation.
Apple faces a serious antitrust lawsuit over the dominance of its iPhone business. AFP via Getty Images
While the probe is in its final stages and top DOJ leaders are within the strategy of examining its findings, no final decision on whether to file a suit has been made, the report said.
Agency officials reportedly met with Apple as recently as last month to debate the situation, but have yet to carry a final meeting with company leaders that might precede a filing.
Representatives for Apple and the DOJ didn’t immediately return requests for comment.
A sweeping lawsuit would mark yet one more headache for Apple, which is within the strategy of fighting a ban on sales of the newest version of its smartwatch after it allegedly infringed on a rival company’s patent.
A US appeals court granted Apple a short lived reprieve last month and blocked the ban while the legal process plays out.
Apple has also faced heat on Capitol Hill over its decision to shut down an app called Beeper, which allowed Android devices to text iPhone users through iMessage.
A bipartisan group of lawmakers asked the DOJ last month to research whether the move violated antitrust law.
The Apple Watch recently faced a sales ban. REUTERS
As a part of their investigation, DOJ officials reportedly interviewed executives at Beeper, a digital tracking firm called Tile and corporations that provide digital payment services.
Apple has to date managed to dodge the extensive regulatory scrutiny that a few of its Big Tech rivals have faced.
Google currently faces multiple antitrust cases, including a landmark challenge of its online search business. A ruling in that case is predicted later this 12 months.
A federal jury recently ruled against Google in a serious antitrust suit filed by “Fortnite” maker Epic Games and determined the corporate maintain an illegal monopoly through its Android app store.
Apple sidestepped an identical lawsuit filed by Epic, though that case has reached the US Supreme Court.
The DOJ could file a suit throughout the first half of 2023. AP
The crackdown took shape in 2019 when the Justice Department began investigating Big Tech firms for antitrust violations.
The Google cases were initially given precedence on the agency because officials lacked the resources “lacked the financial resources and personnel to completely evaluate each corporations,” the Times said, citing two officials.
The DOJ’s antitrust team reportedly gained access to a bigger budget starting in 2022.
Elsewhere, the Federal Trade Commission has targeted Amazon and Instagram parent Meta over their business practices.