Current:Home > ScamsWhat the DOJ lawsuit against Apple could mean for consumers -FutureWise Finance
What the DOJ lawsuit against Apple could mean for consumers
View
Date:2025-04-14 03:58:09
The US Justice Department and more than a dozen states filed an antitrust lawsuit against Apple on Thursday, accusing the company of monopolizing the smartphone market.
The lawsuit alleges Apple kept prices and fees high and restricted developers of apps, products and services used on the iPhone that could otherwise lower costs.
Apple issued a statement saying the lawsuit threatens the company's ability to provide innovative technology and could set a "dangerous precedent." A spokesman for Apple said in the statement that the lawsuit was "wrong on the facts and the law" and that Apple would "vigorously defend against it."
More:Justice Department sues Apple for allegedly monopolizing the smartphone market
But what does all of this mean for consumers? Here's a look at Apple's response to new regulations abroad, what changed and similar recent lawsuits.
Apple made changes in EU
Apple recently made sweeping changes to its operating systems in the European Union, making them more open to comply with EU regulations and the Digital Markets Act.
In response to the DMA, Apple said its updates and changes would offer consumers more flexibility, alternative app marketplaces and give developers the opportunity to link out for users to complete purchases of digital goods or services.
The changes would also make room for alternative browser engines and contactless payments, meaning it would allow users to select a third-party contactless payment app — or an alternative app marketplace — as their default.
Apple introduced those changes with the iOS 17.4 update in the EU.
What it could mean for iPhone users
Here's what iPhone users could see if Apple loses the lawsuit or makes changes similar to those made in the EU:
- App Store flexibility may mean better user experience and service, with more developers submitting apps
- More options for using third-party smart watches
- More contactless payment options
- Expanded browser options
Similar scrutiny
Both Apple and Google have been scrutinized and faced lawsuits over how they treat developers.
Google lost an antitrust lawsuit brought by Epic Games, best known as the maker of Fortnite, over barriers to the Android app store. Apple also faced a similar suit in 2020 brought by Epic, in which a federal judge ruled Apple had to let developers use payment options outside of Apple’s app store.
More:Facebook owner, Microsoft, X and Match side with Epic Games in Apple lawsuit
Sumit Sharma, senior researcher for tech competition at Consumer Reports, released a statement praising the lawsuit.
"Apple has been an outlier in its willingness to make changes to products and services to the benefit of consumers and developers," Sharma said. "We’ve seen Apple limit access to hardware and software for competing services and products like smartwatches and contactless payments, and that’s harmed innovation and competition."
Sharma also wrote an Opinion column for USA TODAY in 2021 about Apple, Google and the need for fair rules.
veryGood! (51641)
Related
- Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
- Ex-FBI source accused of lying about Bidens and having Russian contacts is returned to US custody
- Biden ally meets Arab American leaders in Michigan and tries to lower tensions over Israel-Hamas war
- Seattle officer won't face felony charges for fatally hitting Jaahnavi Kandula in 2023
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- 2 children died after falling into a river at a campground near Northern California’s Shasta Dam
- Jelly Roll announces Beautifully Broken tour: Here are the dates, how to get tickets
- Gay rights advocates in Kentucky say expansion to religious freedom law would hurt LGBTQ+ safeguards
- In ‘Nickel Boys,’ striving for a new way to see
- S🍩S doughnuts: Free Krispy Kreme sweetens day after nationwide cellphone outage
Ranking
- Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
- Reddit strikes $60M deal allowing Google to train AI models on its posts, unveils IPO plans
- Powerball winning numbers for Feb. 21 drawing: Jackpot rises to over $370 million
- What’s next after the Alabama ruling that counts IVF embryos as children?
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- Horoscopes Today, February 22, 2024
- Denver police seek help finding a former funeral home owner after body kept in hearse for 2 years
- Join a Senegalese teen on a harrowing journey in this Oscar-nominated film
Recommendation
McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
What to know about Wendy Williams' diagnosis of aphasia and frontotemporal dementia
Students demand universities kick Starbucks off campus
2 killed in chain-reaction crash at a Georgia welcome center that engulfed semitrucks in flame
Rolling Loud 2024: Lineup, how to stream the world's largest hip hop music festival
4 alleged weapons smugglers brought to U.S. to face charges after 2 Navy SEALs died in seizure operation
2 climbers are dead and another is missing on Pico de Orizaba, Mexico's highest mountain
Love Island USA: Get Shady With These Sunglasses From the Show