Why Does Apple Lock-in Your iPhone? The US Department of Justice Accuses Apple of a “Fast” Failure to Integrate a Social Media Platform

With well over 1 billion units sold, the iPhone is Apple’s leading moneymaker. The main idea in the argument was that Apple is doing everything it can to keep things the way they are. The company has used unfair tactics that give it an advantage over competitors that cannot offer the same experience, like Apple Pay and the Apple Watch.

The company has exclusive software features that make it seem like the company does not care about how consumers view their products or how they conduct business.

Apple plans to support a more modern messaging protocol later this year. But even then, don’t expect those bubbles to change color. The green bubble stigma is a real thing — at least in the United States, where iMessage is so prevalent. It is a huge factor in the process of phone lock-in.

Tim Cook’s quote from the Code Conference is included in the complaint. “I can’t send my mom certain videos,” an audience member told Cook when complaining about the cross-platform messaging quagmire. Cook said that he wanted to buy his mom an iPad.

The DOJ doesn’t like Apple’s use of the Apple Watch as a cudgel to stick with their phones. As it stands, you must have an iPhone to use an Apple Watch, and Apple limits third-party smartwatches from doing everything an Apple Watch can.

According to the filing, Apple has made it hard for so-called “super apps” to be on the platform. It is impractical for Microsoft and other cloud gaming companies to start offering services in a way that they can monetize them, because of the company’s rules. Apple has changed some policies, but key players still aren’t satisfied.

It’s no secret that Apple products work best if you stick with an iPhone. It turns out that’s a big reason why Apple landed in hot water today with the US Department of Justice, which alleges that the company went too far in locking down messaging, smartwatches, and digital wallets to intentionally hobble its rivals.

The DOJ also notes that Apple limits third-party messaging apps like WhatsApp, Signal, and Facebook Messenger in comparison to iMessage. You have to give permission for the apps to operate in the background or access the camera of the phone for video calls. If you want to use them, you will have to convince friends to download the same apps. All this is done by iMessage.

The DOJ isn’t buying the idea that Apple supports RCS to make cross-platform messaging better. It notes that Apple doesn’t have it yet, and third-party apps would still be banned from incorporating it even after Apple adopts it. The DOJ also takes issue with the fact that Apple only agreed to adopt a 2019 version of RCS. Unless Apple agrees to support future versions, it argues RCS could be broken on the phone.

Apple has limits on third-party watches. There is no problem with using the same number for both your watches and phones. However, if you wanted to do that with a third-party cellular watch, you’d have to disable iMessage on the iPhone. If you choose a third-party watch, you will need to use two different numbers for both your phone and watch.

Comment on ‘Apple’ on Tap-to-Pay Access and its Implications for US Consumer Financial Protection and Pay Card Transactions’

Again, the DOJ asserts that it’s feasible for Apple to enable tap-to-pay access but that it won’t because it would “be one way to disable [A]pple [P]ay trivially” and encourage other types of payment apps. It also notes that Apple already allows merchants to use NFC to accept Apple Pay payments.

The 0.15 percent for each credit card transaction done through Apple Pay is something banks have to pay. It is free for banks that use the payment app from either Samsung or Goggles. The result is that Apple got nearly $200 billion in US transactions in 2022, according to a US Consumer Financial Protection Bureau report. The same agency estimates that digital wallet tap-to-pay transactions will increase by over 150 percent by 2028.