The New York Times reported that the US Justice Department could be ready to file a “sweeping” antitrust lawsuit against Apple in the first half of 2024. The agency is looking into how Apple controls its hardware and software to “lock” users into the Apple ecosystem and make it difficult for rivals to compete.

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An antitrust lawsuit, if it happens, would be Apple's biggest legal risk in the US. (Photo: Apple)

Apple officials have worked with the Justice Department several times in the investigation, which covers everything from iMessage to the Apple Watch. Some of the topics include: How the Apple Watch works better with the iPhone than other smartwatches; how Apple blocks competitors from iMessage; how Apple blocks other financial services from offering tap-to-pay services similar to Apple Pay on the iPhone; whether Apple favors its own apps and services over third-party ones; how Apple blocks cloud gaming from the App Store; how App Tracking Transparency affects advertising data collection; and the fees Apple pays for in-app purchases.

Apple rivals like Tile, Beeper, Basecamp, Meta, and Spotify have also spoken with antitrust investigators, as have banks that want access to the iPhone's NFC feature.

The US Department of Justice has yet to make a final decision on the case. Apple and Microsoft are the only two of the “Big 5” companies that have not been sued for their business practices in the US. Google, Amazon and Meta have all been “investigated” by the US Department of Justice or the US Federal Communications Commission.

Apple has successfully defended itself against antitrust charges in its home country over the past few years. In 2020, the US House Antitrust Subcommittee called Apple, Meta, Google, and Amazon “monopolies of the kind last seen in the era of oil barons and railroad barons.”

Apple argues that it does not have a dominant market share in any of the categories it sells, and the company often cites the opportunities and jobs the App Store provides. If the Justice Department chooses to file an antitrust lawsuit, it could lead to a legal battle that could last for years.

While Apple has so far avoided legal action in the US, it is battling antitrust regulations in the EU. The Digital Markets Act (DMA) could soon force the company to make significant changes to its App Store, Siri, iMessage, FaceTime and other services. For example, the iPhone maker is looking to support third-party downloads outside the App Store in Europe in the second half of this year.

(According to MacRumors)