Apple under fire: US nears sweeping antitrust lawsuit against iPhone maker

Apple, the world’s most valuable tech company, is facing a from the US Justice Department, which could be filed as early as the first half of this year, according to three people familiar with the matter. The Justice Department is investigating how Apple has used its power over its hardware and software to make it harder for customers to switch to other devices and for rivals to compete with its products and services, the people said, speaking on the condition of anonymity because the probe was ongoing, as reported by the .

The investigation has reportedly widened beyond what was previously known and has looked into various aspects of Apple’s business, such as how the Apple Watch is more integrated with the iPhone than other smartwatches and how Apple prevents competing platforms from accessing its iMessage service. The agency has also examined Apple’s payment system for the iPhone, which blocks other financial companies from offering similar features, the people said.

Two people said the Justice Department’s antitrust division is reviewing the investigation findings so far. The officials have met with Apple several times, most recently in December, to discuss the case. No final decision has been made on whether to file a lawsuit or what it would entail, and Apple has not had a last chance to present its arguments to the government before a lawsuit is filed.

Apple has faced criticism and complaints from some of its , who have also reportedly talked to the investigators. Among , an app that tried to integrate iMessage on Android devices but was blocked by Apple last year. Tile, a maker of Bluetooth trackers that competes with Apple’s AirTag, also allegedly met with the Justice Department.

The agency is said to have spoken to representatives from banking and payment apps, who have complained about Apple’s restriction of tap to pay features on the iPhone. Meta, the social media giant formerly known as Facebook, also reportedly encouraged the Justice Department to look into Apple’s App Tracking Transparency (ATT) feature, which was launched in 2021 and allows users to limit advertisers’ data collection.

Meta claimed in 2022 that ATT could cost $10 billion that year. The New York Times also said that investigators have looked into Apple’s commission of digital purchases made on the iPhone, which has been challenged by Spotify, Epic Games, and Match Group in recent years. Apple has been sued before by the Justice Department and other parties over its business practices.

In 2012, the agency accused Apple of conspiring with book publishers to raise the price of e books. Apple lost the case and paid a $450 million settlement. In 2020, Epic Games, the creator of the popular game Fortnite, rule that developers use Apple’s payment system. A federal judge ruled that Apple did not have a monopoly in mobile games, dealing a major blow to Epic’s case.

However, it got a different over similar allegations. A jury decided in December that Google’s app store policies had violated antitrust laws. Google plans to appeal the verdict. The Justice Department’s potential lawsuit against Apple would be the most significant federal antitrust case against the tech giant and would mark the fourth time that American regulators have sued one of the biggest tech companies for monopolistic behavior in less than five years..