Governance
Apple is in final contact with US Justice Department
Apple aims to dissuade US Justice Department from an antitrust lawsuit, amid ongoing scrutiny over alleged anti-competitive practices.
Headline
Apple aims to dissuade US Justice Department from an antitrust lawsuit, amid ongoing scrutiny over alleged anti-competitive practices.
Context
Representatives from Apple met with US Justice Department officials last week to persuade them not to file an antitrust lawsuit against Apple. Insiders said Apple and its lawyers met with Assistant Attorney General Jonathan Kanter, who will make the final decision on whether to file the lawsuit. Antitrust enforcers have been investigating Apple since 2019, claiming that Apple imposes software and hardware restrictions on its iPhone and iPad to prevent effective competition from rivals.
Evidence
Pending intelligence enrichment.
Analysis
Also read: Apple seeks dismissal of $1 billion App Store lawsuit in the UK The lawsuit is expected to be filed in the coming weeks, ‘most likely’ by the end of March, according to the sources. The report mentioned that Apple’s App Store charges developers a 15% or 30% commission, a move that has been heavily criticised by developers and legislators. In January of this year, Apple announced that it would allow US developers to use alternative payment systems outside the App Store , but commissions for App Store small business program members are set at 12%, while others remain at 27%. The US Justice Department has also been keeping an eye on Apple’s actions in Europe. To comply with this requirement, Apple will allow users to download software from sources other than the App Store, use alternative payment systems, and more conveniently choose new default web browsers.
Key Points
- Representatives from Apple met with US Justice Department officials to dissuade them from filing an antitrust lawsuit against Apple.
- The lawsuit, expected to be filed in the coming weeks, follows ongoing investigations into Apple’s alleged imposition of restrictions on iPhone and iPad to stifle competition.
- Additionally, Apple faces scrutiny in Europe, with potential fines for anti-competitive practices concerning its App Store.
Actions
Pending intelligence enrichment.
