March 20 (Reuters) - The U.S. Department of Justice
(DOJ) is preparing to sue Apple ( AAPL ) as soon as Thursday for
allegedly violating antitrust laws by blocking rivals from
accessing hardware and software features of its iPhone,
Bloomberg News reported on Wednesday.
Taking action against Big Tech has been one of the few ideas
that Democrats and Republicans have agreed on. During the Trump
administration, which ended in 2021, the Justice Department and
Federal Trade Commission (FTC) opened probes into Google,
Facebook, Apple ( AAPL ) and Amazon.
A DOJ spokesperson and Apple ( AAPL ) did not immediately respond
to Reuters requests for comment.
It is not clear what the focus of the charges would be, but
makers of hardware devices, like smart-tracker maker Tile, have
long complained that Apple ( AAPL ) has restricted the ways in which they
can work with the iPhone's sensors while developing competing
products that have greater access.
Apple ( AAPL ) began selling AirTags - which can be attached to items
like car keys to help users find them when they are lost -
several years after Tile had been selling a similar product.
Similarly, Apple ( AAPL ) has restricted access to a chip in the
iPhone that allows for contactless payments. Credit cards can
only be added to the iPhone by using Apple's ( AAPL ) own Apple Pay
service.
Apple ( AAPL ) has long argued that it restricts access to some user
data and some of the iPhone's hardware by third-party developers
for privacy and security reasons.
The iPhone maker has also faced criticism over its iMessage
service, which only works on Apple ( AAPL ) devices. Critics have
complained that the company has disadvantaged messages sent to
and received from Android phones by shrinking pictures and
videos. Last year, Apple ( AAPL ) changed course said it will support a
new messaging technology called RCS, which has been promoted by
Google as a way to make messaging smoother across different
types of devices.
Late in February, Bloomberg News had reported that Apple ( AAPL )
representatives met with Justice Department officials in a bid
to persuade the agency not to file an antitrust suit against the
iPhone maker.
A new antitrust suit against Apple ( AAPL ) would be the third by the
Justice Department in the past 14 years, but it is the first
case accusing the iPhone maker of illegally maintaining its
dominant position, Bloomberg reported.
Apple ( AAPL ) is also in the midst of an antitrust-related
tussle with "Fortnite" videogame maker Epic Games.
Earlier in the day, Meta Platforms ( META ), Microsoft ( MSFT )
, Elon Musk's X and Match Group ( MTCH ) joined Epic
Games' protest that Apple ( AAPL ) has failed to honor a court-ordered
injunction governing payments in its lucrative App Store.
The technology giants behind some of the most popular apps
in the App Store said Apple ( AAPL ) was in "clear violation" of the
Sept. 2021 injunction by making it difficult to steer consumers
to cheaper means to pay for digital content.
The Justice Department has sued Alphabet's Google
twice - once under Republican Donald Trump regarding its search
business and a second time on advertising technology since
Democratic President Joe Biden took office. The FTC sued
Facebook during the Trump administration and Biden's FTC has
pressed forward with the lawsuit.
Shares of Apple ( AAPL ) were down 1.5% at $175.97 in extended
trading on Wednesday.