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EXPLAINER-US lawsuit against Apple could make iPhone experience more consumer-friendly
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EXPLAINER-US lawsuit against Apple could make iPhone experience more consumer-friendly
Mar 22, 2024 11:15 AM

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.

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