Current:Home > StocksWhat the DOJ lawsuit against Apple could mean for consumers -Elevate Money Guide
What the DOJ lawsuit against Apple could mean for consumers
View
Date:2025-04-27 22:20:46
The US Justice Department and more than a dozen states filed an antitrust lawsuit against Apple on Thursday, accusing the company of monopolizing the smartphone market.
The lawsuit alleges Apple kept prices and fees high and restricted developers of apps, products and services used on the iPhone that could otherwise lower costs.
Apple issued a statement saying the lawsuit threatens the company's ability to provide innovative technology and could set a "dangerous precedent." A spokesman for Apple said in the statement that the lawsuit was "wrong on the facts and the law" and that Apple would "vigorously defend against it."
More:Justice Department sues Apple for allegedly monopolizing the smartphone market
But what does all of this mean for consumers? Here's a look at Apple's response to new regulations abroad, what changed and similar recent lawsuits.
Apple made changes in EU
Apple recently made sweeping changes to its operating systems in the European Union, making them more open to comply with EU regulations and the Digital Markets Act.
In response to the DMA, Apple said its updates and changes would offer consumers more flexibility, alternative app marketplaces and give developers the opportunity to link out for users to complete purchases of digital goods or services.
The changes would also make room for alternative browser engines and contactless payments, meaning it would allow users to select a third-party contactless payment app — or an alternative app marketplace — as their default.
Apple introduced those changes with the iOS 17.4 update in the EU.
What it could mean for iPhone users
Here's what iPhone users could see if Apple loses the lawsuit or makes changes similar to those made in the EU:
- App Store flexibility may mean better user experience and service, with more developers submitting apps
- More options for using third-party smart watches
- More contactless payment options
- Expanded browser options
Similar scrutiny
Both Apple and Google have been scrutinized and faced lawsuits over how they treat developers.
Google lost an antitrust lawsuit brought by Epic Games, best known as the maker of Fortnite, over barriers to the Android app store. Apple also faced a similar suit in 2020 brought by Epic, in which a federal judge ruled Apple had to let developers use payment options outside of Apple’s app store.
More:Facebook owner, Microsoft, X and Match side with Epic Games in Apple lawsuit
Sumit Sharma, senior researcher for tech competition at Consumer Reports, released a statement praising the lawsuit.
"Apple has been an outlier in its willingness to make changes to products and services to the benefit of consumers and developers," Sharma said. "We’ve seen Apple limit access to hardware and software for competing services and products like smartwatches and contactless payments, and that’s harmed innovation and competition."
Sharma also wrote an Opinion column for USA TODAY in 2021 about Apple, Google and the need for fair rules.
veryGood! (89)
Related
- Moving abroad can be expensive: These 5 countries will 'pay' you to move there
- 'A world apart': How racial segregation continues to determine opportunity for American kids
- Black Mirror Season 7 Details Revealed
- Climate change will make bananas more expensive. Here's why some experts say they should be already.
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- Cockfighting opponents in Oklahoma worry support is growing for weakening the state's ban on the bloody sport
- Want to coach your alma mater in women's college basketball? That'll be $10 million
- Love Is Blind's Jessica Vestal, Micah Lussier and Izzy Zapata Join Perfect Match Season 2
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Florida woman found dead on cruise ship, Bahamas police say
Ranking
- This was the average Social Security benefit in 2004, and here's what it is now
- SpaceX launches Super Heavy-Starship rocket on third test flight
- Can smelling candles actually make you sick?
- Kristin Cavallari Shares Glimpse at Spring Break With Kids After Romance Debut
- Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
- Terrified residents of San Francisco’s Tenderloin district sue for streets free of drugs, tents
- New Jersey lawmakers pause open records bill overhaul to consider amendments
- Steven Mnuchin wants to buy TikTok: Former Treasury Secretary says he's gathering investors
Recommendation
Most popular books of the week: See what topped USA TODAY's bestselling books list
Survivor Season 46 recap: Sinking tribe finds unexpected victory in Episode 3
Parents of 7-Year-Old Girl Killed by Beach Sand Hole Break Silence
Report: Federal judge dismisses defamation lawsuit against Jerry Jones in paternity case
The Louvre will be renovated and the 'Mona Lisa' will have her own room
Kirk Cousins' recovery from torn Achilles leaves Falcons to play waiting game with star QB
Want to coach your alma mater in women's college basketball? That'll be $10 million
Mysterious 10-foot-tall monolith that looks like some sort of a UFO pops up on Welsh hill