DOJ takes on Apple as momentum builds for measures to rein in Big Tech

AAPL

The U.S. Department of Justice filed a lawsuit against Apple on Thursday, marking the latest antitrust action taken against Big Tech companies that authorities have accused of establishing monopolies and abusing their position.

Since 2019, the U.S. Justice Department has been looking into Apple, and on Thursday, the department said that Apple has put hardware and software restrictions on its iPads and iPhones in an effort to prevent competitors from successfully competing.

The company is also subject to regulatory scrutiny in Europe; earlier this month, Apple was fined 1.84 billion euros ($2 billion) for using its App Store to obstruct rival music streaming competitors' competitiveness.

Though Apple is contesting the fine, the bloc's Digital Markets Act—new regulations aimed at Big Tech—will put it under closer examination. These regulations came into force earlier this month.

META

Earlier last month, an appeals court said that Meta could not prevent the Federal Trade Commission from resuming its investigation into the privacy practices of its Facebook unit for the time being. Citing the $5 billion fine it paid and the array of measures it had committed to, the business had objected.

Numerous states in the United States sued Meta and its Instagram division in October, claiming that the company's addictive social media platforms were contributing to a crisis in juvenile mental health.

In May 2023, the business's primary European Union privacy authority fined it a record 1.2 billion euros for the way it handled user data. The corporation was also given five months to cease sending customer data to the United States.

AMZN

In September, the U.S. Federal Trade Commission brought a much-awaited antitrust complaint against Amazon, alleging that the company's increasing pricing was detrimental to customers.

The e-commerce behemoth is accused in one of the FTC's other actions against the business of tricking "millions of consumers" into subscribing to Prime services.

GOOGL

November saw the conclusion of the evidence phase in the legal dispute between Google and the US government. The Justice Department aimed to establish throughout the trial, which began on September 12, that Google is a monopolist and that it unlawfully misused its authority to benefit its financial line.

The Trump government brought the first of five cases to control the big internet companies.

32 media organisations filed a 2.1 billion euro lawsuit against Google in February, claiming the company's digital advertising tactics caused them losses. A jury finding in a lawsuit brought by "Fortnite" creator Epic Games, which claimed the internet behemoth had abused its market power in establishing policies for its app store, was also overturned by Google last month, according to a request made to a U.S. judge. The high-profile antitrust trial, in which Epic Games was victorious, has the potential to completely change the app store industry if it is upheld.

(Sources: investing.com, reuters.com)