Apple has been criticized for hindering cloud gaming services by requiring individual game approvals, even for streamed titles. This allegedly stifles competition and discourages users from opting for cheaper devices, potentially forcing them to upgrade iPhones more frequently.
The Department of Justice (DOJ) has taken aim at these practices. The Antitrust Division Chief, Jonathan Kanter, accuses Apple of a systematic approach to limit competition. He claims Apple uses “Whac-A-Mole” tactics, imposing a stream of restrictive contracts and rules to:
- Charge consumers more: By limiting competition, Apple allegedly maintains higher prices for its devices.
- Extract higher fees from developers: Developers creating apps for Apple’s ecosystem may face steeper fees compared to alternative platforms.
- Stifle innovation: Apple’s practices could potentially hinder the development of cross-platform technologies like super apps and cloud-based services.
The DOJ lawsuit filed in the US District Court for the District of New Jersey seeks to prevent Apple from:
- Using its control over app distribution to restrict cross-platform technologies.
- Leveraging private APIs to limit competition in areas like messaging, wearables, and digital wallets.
- Using contracts to maintain a monopoly in various tech sectors.
Apple maintains its practices are essential to its core identity and the success of its products. Spokesperson Fred Sainz argues that the DOJ’s actions threaten Apple’s ability to deliver a seamless user experience where hardware, software, and services work together. He further warns of a “dangerous precedent” where government overreach dictates tech design. Apple plans to vigorously defend itself against these accusations.
