The United States Department of Justice (DOJ) has initiated an antitrust lawsuit against Apple, accusing the tech giant of creating a “social stigma” for Android users through its messaging system.
According to the DOJ, Apple’s practice of displaying text messages from Android users in a “green bubble” on iPhones contributes to a sense of exclusion and discrimination among users.
The department argues that this is part of Apple’s strategy to maintain its dominance in the smartphone market.
The lawsuit stated, “Many non-iPhone users also experience social stigma, exclusion, and blame for ‘breaking’ chats where other participants own iPhones.”
It also asserted that this effect is “particularly powerful for certain demographics, like teenagers.”
The department claims that Apple’s actions have discouraged competition by preventing Android users from accessing features such as typing indicators and high-quality video messaging when communicating with iPhone users.
Apple is also accused of hindering third-party apps that could have facilitated these interoperability issues.
The lawsuit, supported by 16 state attorneys general and filed in a federal court in New Jersey, emphasizes how Apple’s policies allegedly bolster its market position not by improving its own products but by impairing the functionality of communications with competitors’ devices.
Attorney General Merrick Garland criticized Apple for the “limited functionality” of texts from Android devices to iPhones.
Garland said, “Consumers should not have to pay higher prices because companies violate the antitrust laws.”
He added, “We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law.”
The lawsuit brought attention to a moment during Vox Media’s Code Conference in 2022, where an attendee requested Tim Cook to address the issue of Android-to-iPhone texting, citing difficulties in sending specific videos to their mother.
Cook replied, “Buy your mom an iPhone.”
The DOJ argues that this attitude encourages a cycle in which consumers feel pressured to purchase iPhones to avoid social inconveniences, thus reinforcing Apple’s market dominance.
In reaction to the lawsuit, Apple’s stock value dropped substantially, losing over 4% in a single day, which amounted to a $113 billion decrease in its market valuation, according to Bloomberg.
Since the start of the year, Apple’s shares have declined by approximately 11%.
Apple has defended itself against the accusations, stating that the lawsuit challenges its core identity and the principles that distinguish its products in a competitive market. The company warned that the lawsuit, if successful, could impede its ability to innovate.
The company’s statement noted, “It would also set a dangerous precedent, empowering the government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”
Apple Inc., a publicly traded company registered in California and based in Cupertino, California, reported annual net revenues of $383 billion and net income of $97 billion for fiscal year 2023.
Its net income surpasses any other company listed in the Fortune 500 and exceeds the gross domestic products of over 100 countries.
