Skyline photo of Manhattan, NY
Pedestrians and bicyclist crossing Brooklyn bridge
everyday people crossing at intersection in NYC
street scene of NYC with bicycle delivery person in foreground
NY Skyline at dusk
February 7, 2024

Legal News

February 7, 2024

Apple's New Antitrust Challenge: The DOJ's Probe

by Jaleel Menifee

Apple (AAPL), which has long evaded the antitrust challenges faced by other Big Tech companies, is now under the scrutiny of the U.S. Department of Justice (DOJ). This development marks a significant shift in the company's regulatory landscape and could have far-reaching implications for its business model and market practices.

DOJ's Investigation into Apple:

The DOJ is concluding a two-year investigation into Apple’s ecosystem. This probe is centered on whether Apple's integration of products like iPhones, the App Store, Apple Watch, iMessage, and AirTags hinders competition. The duration and intensity of this investigation suggest the DOJ may have found substantial issues.

The investigation threatens Apple's "walled garden" approach, which has been a cornerstone of its success. The potential dismantling of this ecosystem could affect Apple's diverse revenue streams, including the lucrative iPhone, which alone generated $200.6 billion in 2023. Other areas under threat include Apple's wearables and services sectors, which are also highly profitable.

Legal Perspectives:

Experts like Martin Edel and John Newman highlight the complexity of antitrust litigation, especially against a firm like Apple. The focus would likely be on how Apple maintains, rather than established, its market dominance. Apple's vulnerability to antitrust action is heightened under the current administration's aggressive stance on Big Tech.

Apple's situation is further complicated by ongoing antitrust cases, like the Epic Games dispute and the DOJ’s case against Google. The outcomes of these cases could influence the DOJ’s approach to Apple, especially in terms of legal strategy and jurisdiction choices.

Possible Outcomes and Strategies:

As the DOJ nears the end of its investigation, negotiations between Apple and the DOJ are likely. These discussions could lead to a resolution without litigation, but the possibility of a lawsuit remains. Given the DOJ’s access to company data and its team of top antitrust litigators, Apple faces a formidable challenge.

Apple, once seemingly immune to the antitrust issues plaguing its peers, now finds itself at a critical juncture. The DOJ's investigation, along with the broader regulatory environment, poses a significant threat to Apple's business model and its future in the highly competitive tech landscape.

The attorneys at Outside Legal Counsel LLP specializes in all employer-employee related matters and represent both employers and employees. Our aim is to ensure that all employment-related decisions are made with an eye towards avoiding liability. Please reach out to us for more information about our services and how we can help you navigate this rapidly changing landscape.

This is not legal advice and is attorney advertising.

back to news

Disclaimer: Nothing on this website is or should be construed as legal advice. An attorney-client relationship does not exist with our firm unless a signed retainer agreement is executed, and we do not offer legal advice through this site or any of the content located on it. For legal advice for your particular circumstances, please contact us directly.