Antitrust Action Looms: US Readies Charges Against Apple, Report

The US Justice Department is reportedly nearing the filing of a federal antitrust case against Apple (NASDAQ:AAPL) over allegations of maintaining customer loyalty by making it challenging for users to leave its ecosystem, according to sources cited by The New York Times. The probe, described as being in the "late stages," is investigating Apple's control over both hardware and software, particularly examining how the company restricts competitors' access to iMessage, the integration of Apple Watch with the iPhone, and the prevention of third-party providers from utilizing iPhone-specific payment services.

Officials in the Justice Department's antitrust division are said to be reviewing the findings of the investigation, and a final meeting between Apple and the department has not taken place before a potential lawsuit is filed. Apple has not yet commented on the report, but in the past, the company has maintained that its practices are not in violation of antitrust laws. Apple's position has been to emphasize its contribution to expanding opportunities for various stakeholders, from businesses to artists and entrepreneurs.

Apple CEO Tim Cook had asserted in 2020 that the company does not possess dominant market share in any business segment and emphasized its commitment to creating an ecosystem known for an effortless user experience and design simplicity. The company's stance remains that its practices are within legal boundaries.

This development follows earlier reports from February of the Justice Department intensifying its investigation into Apple. The Justice Department has previously filed antitrust cases against Google, focusing on its search and ad tech businesses, with Google agreeing to a $700 million settlement in December. Additionally, the US Federal Trade Commission (FTC) has taken legal action against Amazon and Meta for alleged anticompetitive practices.

(With Agency Inputs)