WASHINGTON, March 22 (Reuters) - The U.S. has filed a
lawsuit against Apple ( AAPL ) with the aim of increasing competition for
the iPhone and giving a leg up to smaller companies whose apps
work with the ubiquitous device.
In the lawsuit against the $2.7 trillion company, the U.S.
argues the iPhone maker hurt smaller rivals and drove up prices,
and the Justice Department is asking the court "to restore
competitive conditions in the markets affected by Apple's ( AAPL )
unlawful conduct".
Apple ( AAPL ) said the lawsuit threatens the company and the
principles that set its products apart in a competitive market.
In Europe, consumers have already benefited after a slew of
rules and regulations compelled Apple ( AAPL ) to make a number of
user-friendly changes to its popular smartphone, suggesting
similar changes could occur in the U.S. if the Justice
Department lawsuit is successful.
Below are several areas where EU competition authorities
have changed the rules and Apple ( AAPL ) has altered its product.
CHARGING CABLES
Apple's ( AAPL ) switch to USB-C chargers - the standard for
Android-based devices - may be the most obvious change for
users.
In 2022, the EU passed a law making the charging port the
compulsory standard across the 27-nation bloc by the end of
2024. This made it easier for consumers to power up their
devices using chargers they already owned, or to borrow those
belonging to others.
APP STORE
In Europe, new rules have created alternatives to Apple's ( AAPL )
App Store, meaning users can download applications from rival
sources, including websites and rival app stores.
This allows developers to avoid the tech giant's 30%
commission fee which, in theory, could mean apps becoming
cheaper. Once fully implemented, users should also enjoy access
to a wider range of apps.
PAYMENTS USING NON-APPLE WEBSITES
In both the EU and the U.S., app developers can direct users
to their own websites to buy items, rather than having to use
Apple's ( AAPL ) in-app purchasing system, which also takes a 30% cut.
The change was made in the EU in line with the recently
enacted Digital Markets Act. In the U.S., Apple's ( AAPL ) hand was
forced following a lawsuit from Fortnite-maker Epic Games, a
longstanding critic of the tech giant's business practices.
BROWSERS
Another change in Europe introduced to comply with the EU
digital markets law concerns default web browsers. Safari has
been the default browser on iPhones since the device was first
released in 2007.
While iPhone users could already change their default to a
competitor like Google Chrome or Opera, they will now be
automatically be given the choice to switch when opening Safari
in the latest Apple ( AAPL ) software update, iOS 17.4.
Pushing back against the EU changes, Apple ( AAPL ) said users would
be presented with a list of options without the chance to learn
about them, and warned it would interrupt their browsing
experience.