Apple just got thrown into a real-life game of Monopoly that it probably wants absolutely no part of.
What happened: The U.S. Justice Department and 16 jurisdictions filed an antitrust lawsuit against Apple that alleges the tech giant uses its dominance in the smartphone market to deter and prevent iPhone users from accessing rival software, services, and devices.
- The lawsuit argues that Apple purposely blocks alternative products like digital wallets, mobile games, and services that aren’t tied to the Apple operating system.
- The company is also accused of limiting the compatibility of its products with competing hardware like Android phones or non-Apple smartwatches.
Why it matters: The antitrust challenge threatens a core part of Apple’s business: making it a headache to buy anything outside of the Apple ecosystem. A successful case could force Apple to open up its hardware to rival services and give customers *gasp* more choices.
- Apple largely depends on its well-guarded operating system that ties its expensive devices together. Without it, customers wouldn’t have the same incentive to pay for an iPhone, iPad, and a MacBook versus a more affordable device.
- The U.S. attorney general says that by taking options away from users, Apple is able to charge more for everything from devices to cloud storage.
Bottom line: People still love iPhones — that’s partly why almost 1.5 billion people have them. What could be truly tested if this case doesn’t go Apple’s way is how much users actually like their other devices and services when they’re not being quasi-forced to use them.—LA