Tech
DOJ targets Apple: Déjà vu of Microsoft showdown
The shadow of Microsoft’s historic antitrust battle looms large as the Justice Department sets its sights on Apple, accusing the iPhone maker of monopolistic practices.
The lawsuit, unveiled last week, alleges that Apple has unlawfully wielded its dominance over the iPhone ecosystem, echoing echoes of Microsoft’s past struggles with antitrust regulators.
For Apple’s Chief Executive, Tim Cook, the coming years may be consumed by legal battles reminiscent of those faced by Bill Gates during Microsoft’s heyday.
Since assuming leadership in 2011, Cook has overseen remarkable growth in profits and revenues.
However, this latest challenge arrives at a precarious moment, with iPhone growth slowing and concerns mounting over Apple’s position in the burgeoning field of artificial intelligence.
Apple CEO Tim Cook.
Legal woes
The parallels between Apple’s current predicament and Microsoft’s past legal woes are striking.
Just as Gates navigated the storm of antitrust litigation in the late 1990s, Cook now finds himself at the center of a legal maelstrom, with the government seeking significant changes to Apple’s business practices.
The DOJ’s lawsuit invokes Microsoft’s name multiple times, underscoring the government’s determination to rein in the power of Big Tech.
The DOJ is suing Apple in an antitrust lawsuit, alleging the company has a “monopoly” over the smartphone market.
“As set out in our complaint, Apple has maintained its power, not because of its superiority, but because of its unlawful, exclusionary behavior,” AG Garland says. pic.twitter.com/mSSvBVMwdQ
— CBS News (@CBSNews) March 21, 2024
Apple, for its part, vehemently denies allegations of monopoly, citing competition from rivals like Samsung and Google’s Android.
However, if history serves as a guide, Apple may face years of arduous legal proceedings, mirroring Microsoft’s lengthy battle with antitrust regulators.
The case against Microsoft lasted three years before a settlement was reached in 2001, with legal skirmishes in Europe continuing until 2009.
Apple’s iPhone is under scrutiny by the department of justice for being a monopoly.
Tech powerhouse
Apple’s evolution from a struggling company on the brink of bankruptcy to a tech powerhouse has not gone unnoticed.
The DOJ acknowledges Apple’s transformation, noting that remedies from the Microsoft case facilitated the launch of iTunes, the iPod, and eventually, the iPhone.
Despite Apple’s objections to comparisons with Microsoft’s past dominance, the parallels are difficult to ignore.