The US Department of Justice (DOJ) has launched a major lawsuit against Apple Inc. This legal action accuses Apple of monopolizing the app market, hindering competition, and stifling innovation.
The DOJ’s lawsuit against Apple could serve as a turning point. It has the potential to foster a more competitive and innovative digital marketplace, particularly for crypto apps.
United States Fights Against Apple’s 30% Tax
Filed on March 21 in a New Jersey federal court, the lawsuit is supported by 16 state attorney generals. It claims that Apple abuses its market dominance in smartphones to compel developers into using its payment system.
As a result of these allegations, Apple’s stock price fell by 3.8% on Thursday. This drop signifies investor concern over potential regulatory challenges and Apple’s market control.
The DOJ argues that Apple’s App Store policies enact restrictive rules. These rules enable Apple to demand 30% transaction fees, block innovation, and degrade the user experience.
“It has deployed this playbook across super apps, text messaging, smartwatches, and digital wallets, among many others,” the DOJ said.
For instance, OpenSea, a leading NFT (non-fungible token) marketplace, has limited its iOS app functionality due to Apple’s fees. Similarly, the social app Damus removed a Bitcoin tipping feature after Apple excluded it from the App Store.
Furthermore, Apple’s decision to disable Progressive Web Apps (PWAs) on its devices has raised concerns about its impact on the crypto and web3 ecosystem. This shift forces developers to pivot towards more resource-intensive native app development, subject to Apple’s stringent review process, thereby potentially delaying market entry and escalating costs.
Additionally, US lawmakers Gus Bilirakis and Jan Schakowsky raised certain concerns regarding the Apple App Store in July 2023. They fear that Apple’s App Store guidelines might undermine the US position in blockchain and crypto innovations.
Their letter to Apple’s CEO highlighted the challenges faced by web3 and game developers. These entities often monetize through cryptocurrency and NFTs. Thus, Apple’s policies could unfairly disadvantage them.
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