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Issue link: https://digital.macdirectory.com/i/1515807
Following a lengthy investigation, the United States Justice Department is set to file a lawsuit against Apple for potentially breaching antitrust laws. The department alleges Apple is using hardware and software limitations that make it harder for rival companies to compete with iPhones and iPads. If the filing goes ahead, it will mean each of the “big four” tech companies – Amazon, Meta, Google and Apple – will have been sued by the US federal government within the past five years for monopolistic business practices. As the digital market continues to grow, many countries including the European Union, Japan, the United Kingdom, the US, China, South Korea, India and Australia have all either introduced, or plan to introduce, competition legislation specific to tech firms. But what are antitrust laws? And how are the tech giants breaching them? What are antitrust laws? Antitrust laws originated with the US Sherman Antitrust Act of 1890. This law banned business arrangements which restrained trade, and prohibited attempts to monopolise. Over time, the Sherman Antitrust Act evolved into what are today’s antitrust laws, adopted in countries all over the world. Antitrust laws are enforced at domestic levels and allegations of breaches of these laws pertain to domestic markets. These laws – also known as competition laws – prohibit business practices that promote unfair monopolies, stifle competition and reinforce dominance or power. In recent years, technology products – whether apps or physical products like phones and computers – have been under an enormous amount of scrutiny. Calls for regulating the development and use of technology have a dominant focus on artificial intelligence. Meanwhile, the business practices of tech giants are garnering less public attention. So it’s noteworthy that the antitrust lawsuits filed against the big four focus on the companies, not just their products. The allegation is these companies are concentrating the market and therefore charging higher markups for their goods and services, while having less incentive to innovate in ways that benefit consumers. How are tech giants breaching antitrust laws? Of the big four, Apple is not the first to be accused of breaching antitrust laws. In the past decade, the European Union has fined Google a total of €8.25 billion (A$13.6 billion) for three separate breaches of EU’s antitrust laws. These related to misuse of Google Shopping to disadvantage competitors in 2017, unfair dominance of the Android operating system market in 2018, and abusive