Apple Likely to Face Antitrust Lawsuit by the Department of Justice
Apple Likely to Face Antitrust Lawsuit by the Department of Justice
As reported recently by Politico and TechCrunch, the Department of Justice (“DOJ”) is likely drafting an antitrust lawsuit against Apple Inc., potentially related to its dominance and control of its App Store, as well as other aspects of its business. Confidential sources suggest that the lawsuit may be filed by the end of this year.
According to Politico, although the DOJ has focused intensely on Apple’s App Store—the application available on iPhones and iPads that allows users to pay for and download digital content—“the case DOJ is now considering extends well beyond the Apple-controlled payment system and the high commissions that have drawn the ire of software developers for years.” Allegedly, the DOJ is now “focused heavily on public complaints leveled by Tile, a maker of devices and technology used to find lost items, according to three people with knowledge of the government’s work.” Tile’s tracking devices compete with Apple’s recently launched AirTags.
Tile’s General Counsel testified before Congress in January 2020 and April 2021, alleging that Apple essentially poached Tile’s product idea, released a competing product, then engaged in anticompetitive conduct to make Tile’s products less convenient to use on Apple products.
The brewing DOJ lawsuit against Apple is not surprising. In March, the DOJ endorsed a bill seeking to tighten regulations on big tech companies. Last year, the European Union charged Apple with anticompetitive conduct over its App Store. By the end of this year, Apple may be facing yet another headache.
Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in Atlanta, Los Angeles and Philadelphia.
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David Calvello is a Partner in Faruqi & Faruqi, LLP’s New York office. He mainly practices in the area of antitrust litigation with a focus on competition in the pharmaceutical industry. He has worked on multiple cases that resulted in significant settlements, including In re Lidoderm Antitrust Litigation, 14-md-02521 (N.D. Cal.) ($166M settlement), In re Loestrin 24 Antitrust Litigation, 13-md-2472 (D.R.I.) ($120M settlement), and In re Solodyn Antitrust Litigation, 14-md-2503 (D. Mass.) ($76M settlement).
