(Anti)trust Issues
2024 is the year of the antitrust and some of tech’s biggest names, from Google to Meta, are currently engaged in lawsuits, with more on the horizon. The U.S. Department of Justice (USDOJ) and the Federal Trade Commission have taken aggressive action against tech companies and have favored a heavy-handed approach to regulating the industry. In March, Apple joined the star-studded list of tech companies sued by the USDOJ.
The federal agency cites monopoly power and the suppression of competition as reasons for the suit. In order to win, it must prove that Apple controls the smartphone market and has acted in a way that hurts customers and other companies. The suit hinges on the assumption that the iPhone’s signature suite of features (app store structure, iMessage, smartwatch compatibility, Apple wallet, etc.) are not merely smartphone advancements to benefit the consumer, but rather are efforts to stifle competition and innovation by making it difficult for users to switch to a different brand.
The USDOJ even goes as far as to cite the social stigma around the green text message bubbles from androids as evidence of anti-competitive monopoly power. Apple is the current leader in the smartphone market, but is this success a crime?
The reality is that people choose Apple products because they prefer them. Android vs. iPhone is a rivalry that has resulted in great innovation within the smartphone industry. The smartphones of today are drastically different from those of even just five years ago, largely due to this competitive atmosphere.
Users can consider a litany of features, from camera quality to overall security, when choosing from the array of smartphones available. The Apple model, though successful, only occupies around 50% of the American market—in other words, half of America prefers a green text bubble.
The resolution to this case will take months to unfold, but it is not difficult to predict the effect that a culture of excessive litigation and scrutiny will have on both Apple and the broader tech industry. When companies are punished for leading and competing ferociously against each other, the entrepreneurial ethos that has made America a leader in technology will inevitably suffer.
The choice between smartphones can often come down to trivial factors, like camera lens and screen display. However, it’s a choice worth persevering. Consumers are best equipped to make decisions about what products they buy and the color of their texts. Apple may be on top right now, but the nature of the technology industry is one of ceaseless motion, with new entrepreneurs always looking for an opportunity to unseat the leader. This, not aggressive regulation, is the best guarantee of a healthy smartphone market.