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Apple antitrust suit mirrors strategy that beat Microsoft, but tech industry has changed

Economic Times

Economic Times · 1y ago

Apple antitrust suit mirrors strategy that beat Microsoft, but tech industry has changed

The US government's antitrust lawsuit against Apple has drawn comparisons to the Microsoft case in 1998. However, legal experts believe that the current smartphone market is very different from the desktop software market at that time. The government accuses Apple of unlawfully monopolising the smartphone market through restrictions on app developers, while Apple argues that the government's claims are wrong. Experts note that Apple's control over the app store is different from the issues Microsoft faced, and that Android provides a strong competitor to iOS. The outcome of the lawsuit is uncertain, but experts believe it will be harder for the government to prevail against Apple compared to the Microsoft case.

Related News

Apple's iPhone is not a monopoly like Windows was a monopoly

TechCrunch · 1y ago

Apple's iPhone is not a monopoly like Windows was a monopoly

The U.S. Department of Justice, along with attorneys general from 16 states and the District of Columbia, has filed an antitrust lawsuit against Apple. The suit alleges that Apple has a monopoly in the premium smartphone market and uses illegal tactics to maintain its dominance. While there are parallels to the DOJ's antitrust case against Microsoft in the 1990s, Apple's monopoly position is not as clear-cut. The DOJ argues that Apple's market share, especially in the U.S., along with barriers to entry, demonstrate its monopoly power. However, Apple could argue that its differentiation and integration are not barriers to competition.

We don't own any part of OpenAI: Microsoft on UK regulator's probe

Inshorts · 1y ago

We don't own any part of OpenAI: Microsoft on UK regulator's probe

Microsoft doesn't own any portion of OpenAI and is only entitled to a profit share, a spokesperson said. This comes after UK's antitrust regulator said it'll review Microsoft and OpenAI's partnership. Microsoft President Brad Smith further said the only thing that changed following OpenAI CEO Sam Altman's return is that "Microsoft will now have a non-voting observer on OpenAI's board".

The Case Against Apple Weaponizes the Cult of Cupertino

Wired · 1y ago

The Case Against Apple Weaponizes the Cult of Cupertino

The US government's antitrust suit against Apple alleges that the company engages in monopolistic behavior by "locking in" iPhone customers and making it difficult for them to switch to other phones. The suit argues that Apple's proprietary messaging protocol, iMessage, is used to undermine competing apps and signal that rival phones are of lower quality. It also mentions the negative cultural and emotional impact of being confined to green chat bubbles, further reinforcing Apple's dominance in the smartphone market. While the cultural arguments may resonate with consumers, legal experts question their validity in an antitrust case. Apple denies the allegations, stating that its products work seamlessly and prioritize privacy and security.

United States v. Apple is pure nerd rage

The Verge

The Verge · 1y ago

United States v. Apple is pure nerd rage

The lawsuit United States v. Apple is a highly readable document that details the alleged anticompetitive behavior of Apple. Unlike most legal filings, this lawsuit is written in a narrative style, making it easier for general readers to understand. It lists various grievances against Apple, ranging from restricting app developers to limiting user options. The Department of Justice (DOJ) is trying to draw parallels to the previous antitrust case against Microsoft and position itself as a guardian of the tech industry. However, the effectiveness of the DOJ's narrative remains uncertain.

US sues Apple, accusing it of maintaining an iPhone monopoly

Economic Times

Economic Times · 1y ago

US sues Apple, accusing it of maintaining an iPhone monopoly

The US Justice Department and 16 state attorneys general have filed an antitrust lawsuit against Apple, alleging that the tech giant violated antitrust laws by preventing other companies from offering applications that compete with Apple products and services. The lawsuit targets Apple's control over the iPhone ecosystem, claiming that the company has created an uneven playing field that hinders competition and hurts consumers and smaller companies. Apple has faced previous antitrust challenges but has effectively defended its business practices. This lawsuit represents the government's most significant challenge to Apple's reach and influence.

U.S court pressures Google and Apple, cites Microsoft’s Antitrust case: Details

Livemint

Livemint · 1y ago

U.S court pressures Google and Apple, cites Microsoft’s Antitrust case: Details

The recent antitrust cases against Google and Apple by the U.S. Justice Department bring back memories of the historic legal battle against Microsoft in the late 90s. Regulators suggest that the intervention against Microsoft enabled the rise of Google and Apple to their current dominant positions. The cases against Google and Apple draw parallels to Microsoft's antitrust saga, emphasizing the need to restore competition for innovation and prevention of new monopolies. The outcome of the Microsoft case showcases the potential for companies to reinvent themselves after regulatory intervention. Historically, antitrust lawsuits have led to technological revolutions and economic growth.

Apple’s antitrust fight begins

The Verge

The Verge · 1y ago

Apple’s antitrust fight begins

The US Department of Justice has filed an antitrust complaint against Apple, accusing the tech giant of stifling innovation in the smartphone industry and depriving competitors and iPhone users of better software and hardware options. The case bears similarities to the US v. Microsoft antitrust trial from over two decades ago. In this podcast episode, the hosts discuss the details of the complaint, including Apple's ecosystem components and the arguments put forward by the DOJ. The episode also features a news roundup.

The US Sues Apple in an iPhone Antitrust Blockbuster

Wired · 1y ago

The US Sues Apple in an iPhone Antitrust Blockbuster

The US Department of Justice, alongside several state attorneys general, has filed a lawsuit against Apple, accusing the tech giant of establishing an "iPhone monopoly" and engaging in anti-competitive behavior. The suit specifically targets Apple's App Store, claiming that the company's control over app distribution and fees charged to developers restricts competition and innovation. The lawsuit seeks to prevent Apple from inhibiting cross-platform technologies and using terms and conditions to maintain a monopoly. Apple has called the lawsuit misguided and stated its intention to vigorously defend against it. This case aligns with the Biden administration's focus on antitrust enforcement.

Microsoft CEO Says AI Could Only Tighten Google's Stranglehold on Search

Startup News FYI

Startup News FYI · 1y ago

Microsoft CEO Says AI Could Only Tighten Google's Stranglehold on Search

Microsoft CEO Satya Nadella testified against Google's dominance in the search space, expressing concerns that competing with Google in the AI age would become even harder. Nadella emphasized that defaults drive user behavior, stating that users may have choice but won't switch from Google. Microsoft tried to entice Apple to switch Safari's default search engine to Bing but was unsuccessful. The Department of Justice (DOJ) has filed a civil antitrust lawsuit against Google for monopolizing digital advertising technologies and manipulating auctions. The lawsuit accuses Google of subverting competition and protecting its monopoly through exclusive deals.

Apple dismisses Microsoft monopoly comparisons

TechCrunch · 1y ago

Apple dismisses Microsoft monopoly comparisons

Apple is denying comparisons between itself and Microsoft in the 1990s after being sued by the United States Department of Justice. The suit alleges that Apple engages in monopolistic practices that provide an unfair advantage. However, Apple argues that it does not have the same level of dominance in the smartphone market as Microsoft did in the computer market during that time. The lawsuit focuses on Apple's control over the App Store and its restrictions on third parties. Apple argues that the lawsuit seeks to turn iOS into Android and set a dangerous precedent for government intervention in technology design.

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