Explained: The many legal cases taking a bite out of Apple

In the latest in a string of legal headaches facing Apple, the United States Department of Justice (DOJ), along with 16 state attorneys general, filed an antitrust lawsuit against Apple, claiming that it illegally maintained a monopoly for its iPhone by stifling competition and imposing high costs on consumers.

“Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits, but by violating federal antitrust law,” said Attorney General Merrick Garland. “Consumers should not have to pay higher prices because companies break the law (…) Monopolies like Apple’s threaten the free and fair markets upon which our economy is based. They stifle innovation; they hurt producers and workers; and they increase costs for consumers,” Prosecutor Garland said addressing a press conference, as reported by AS USA.

Apple stated that it would “vigorously” contest the lawsuit. A victory for the plaintiffs “would hinder our ability to create the kind of technology people expect from Apple,” the company said adding, if you have an iPhone, you can see for yourself the heart of the government’s allegations.

This, however, is not the only legal dispute confronting the firm.

Stand-off with Epic Games

Video game publisher Epic Games has been scouring the courts and approaching the authorities for some years to force Apple and Google to open up their mobile operating systems, iOS and Android — which are between them installed on the vast majority of smartphones — to stores to allow the downloading of alternative applications alternatives.

The intention: To end commission on user purchases.

Two years ago, a US federal judge asked Apple to permit publishers to offer users alternative payment methods, while declaring that Epic had failed to prove a violation of competition law.

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But Epic, backed by other internet giants such as Microsoft and Meta, accuses Apple of not respecting this decision, according to the text of a collective initiative document transmitted on 20 March to a California court.

Apple has proposed a solution allowing it to receive between 12 and 27 per cent of the take on purchases outside its store — this representing only a small reduction compared to what it charges on its App Store.

Epic Games also took Apple (and Google) to court in Australia over similar grievances. The trial opened Monday and is expected to last for five months.

In the EU’s sights

After music streaming platform Spotify took a case to the European Commission, the latter imposed a fine on Apple of €1.8 billion (Rs Rs 16,260 crore) on 4 March for preventing European users from accessing information on alternative, cheaper music streaming services.

In Brussels’ view, Apple applied restrictions to prevent application developers from promoting “alternative and cheaper offers outside the Apple ecosystem” to iPhone and iPad users in order to favour its own service Apple Music.

Apple has decided to appeal the judgment.

The situation has become more complex for the company since 7 March when Europe’s “Digital Markets Act” (DMA) regulation came into effect.

This historic arsenal of legislative power forces the world’s six largest companies, including Apple, to open up their platforms to competition.

Apple has announced that its European users will soon be able to download applications directly from websites.

French lighten load on appeal

In 2020, the French Competition Authority ordered Apple to pay a record fine of €1.1 billion (Rs 9,937 crore) for anti-competitive behaviour towards France-based retailers. The Paris Court of Appeal, however, reduced the sanction by two thirds in 2022, to €372 million (Rs 3,360 crore) after Apple said it had the right to appeal the original punishment.

Spain, Italy distribution

The Spanish competition authority imposed a global fine of €194 million (Rs 1,752 crore) on Apple and Amazon in 2023 for anti-competitive cooperative practices over distribution of Apple brand products by Amazon Spain.

The Italian equivalent body had for its part in 2021 fined Amazon and Apple €200 million (Rs 1,806 crore) for restricting access to Amazon’s platform for some resellers of Apple products.

British developers join in

Apple faces a further lawsuit relating to app store fees in Britain to the tune of £785 million pounds (Rs 8,277 crore). It is alleged that the firm charged third-party developers hefty unfair commissions of up to 30 per cent on purchases of apps in its app store.

Russian fines too

In January of this year Apple had to pay a $13.6-million (Rs 113 crore) fine in Russia for violating competition laws regarding in-app payments.

Apple had only last year had to pay a fine of some $11.1 million (Rs 92.43 crore) for allegedly abusing its dominant mobile apps market position.

With inputs from AFP