The DoJ Appeals: Why the EU Suppressed Apple’s Progress in Keeping the Apps Free and Open for the Public Good, and Why it’s Don’t
The EU might’ve led the way in forcing Apple to loosen its grip over the App Store, but the DOJ also sees a glaring problem with the fees that developers must pay — and the strict guidelines they must abide by — for their apps to remain available to millions of iPhone owners.
Although Apple has exclusive software that makes it seem like its phones are better than those from other companies, it has nothing to do with how Apple conducts business or the way other companies do business.
Apple has said it plans to support RCS, a more modern messaging protocol, for improved cross-platform communication later this year. Don’t expect the bubbles to change color even then. The stigma of the green bubble is something that exists in the United States. And the DOJ says it’s a huge factor that contributes to iPhone lock-in.
The complaint includes a quote from Tim Cook at the 2022 Code Conference that made headlines at the time. Cook was told by an audience member that he couldn’t send his mom certain videos. Cook said to buy your mom an iPad.
Apple is using the Apple Watch as a cudgel to stay with the cell phones it sells. As it stands, you must have an iPhone to use an Apple Watch, and Apple limits third-party smartwatches from doing everything an Apple Watch can.
There are obstacles that Apple has thrown up to keep “super apps” off the platform according to the antitrust filing. It isn’t practical for Microsoft and other cloud gaming companies to launch their services in such a way that they are able to monetize them. The EU’s DMA legislation has resulted in Apple changing some of those policies, but key players still aren’t satisfied.
It’s no secret that Apple products work best if you stick with an iPhone. That is a big reason that Apple was accused of going too far by the US Department of Justice in its dealings with rivals.
The DOJ also notes that Apple limits third-party messaging apps like WhatsApp, Signal, and Facebook Messenger in comparison to iMessage. You have to let the apps operate in the background if you want to make a video call or get an access to the camera. If you want to use them, you need to convince your friends to download the same apps. All this can be accomplished via iMessage.
Apple agreed to support RCS to make cross-platform messaging better, but the DOJ didn’t like it. It notes that Apple not only hasn’t adopted it yet but that third-party apps would still be “prohibited from incorporating RCS just as they are prohibited from incorporating SMS.” The DOJ also takes issue with the fact that Apple only agreed to adopt a 2019 version of RCS. Unless Apple agrees to support future versions, RCs could soon be broken on phones.
Cellular connectivity is another way Apple limits third-party watches. The same number on your watch and phone can be used. That would have to be done with a third-party cellular watch and you wouldn’t be able to send messages on the iPhone. Since most iPhone users are unwilling to do this, it effectively means choosing a third-party watch means you’ll have to use two separate numbers for your watch and iPhone.
Do you really need a digital wallet to allow tap-to-pay access in order for Apple to expand its business in the US by 2028?
Again, the DOJ asserts that it’s feasible for Apple to enable tap-to-pay access but that it won’t because it would “be one way to disable [A]pple [P]ay trivially” and encourage other types of payment apps. Apple has allowed merchants to accept Apple Pay.
Doing so means banks also have to pay 0.15 percent for each credit card transaction done through Apple Pay. It is free for banks using payment apps. According to a US Consumer Financial Protection Bureau report, Apple had over $200 billion in transactions in the US in 2022. The same agency estimates that digital wallet tap-to-pay transactions will increase by over 150 percent by 2028.