UPDATED 21:37 EST / JANUARY 28 2021

APPS

Facebook reportedly preparing to file antitrust suit against Apple

Facebook Inc. is preparing to file an antitrust lawsuit against Apple Inc. for alleged anticompetitive behavior, according to a report today by The Information.

The report, which cites anonymous sources, said the antitrust lawsuit, should it go ahead, will allege that Apple is forcing developers to follow App Store rules that Apple’s own apps do not have to follow. The complaint may also allege that Apple’s refusal to allow third-party apps from becoming the default messaging services on iOS devices instead of iMessage is also anticompetitive.

Another aspect of the potential Facebook lawsuit could include Apple forcing developers to use Apple’s own in-app payment services. Should Facebook argue that in a lawsuit, it would follow in the footsteps of Epic Games Ltd. which filed an antitrust lawsuit against Apple in August claiming that the forced use of Apple’s payment services was also anticompetitive.

Apple’s policies have also previously come to the attention of the European Commission, which launched two antitrust investigations into the company in June. The investigations cover Apple’s policies around in-app purchases and whether those practices harm competition.

Facebook’s issues with Apple have been well-documented. The main drama between the two companies started in August when Apple blocked a Facebook app update that allowed businesses to host paid online events on its platform. Facebook asked Apple to waive the 30% fee it normally charges on in-app purchases so that the earnings from online events can go to businesses. Apple refused to waive the fee.

The next clash between the two companies occurred in September and Apple was forced to ease App Store rules after criticism from both Facebook and Microsoft Corp. over mobile and cloud gaming.

Forward to December, and the two companies clashed again over changes Apple was planning to make in iOS 14, specifically developers needing permission from users before any kind of data tracking can occur. Facebook argued the change would be “devastating” for small businesses that rely on tracking to target users for customized ads.

Although it’s not confirmed that Facebook will go ahead with a lawsuit, Chief Executive Officer Mark Zuckerberg addressed Apple on a investors call following its quarterly earnings report Wednesday, calling it one of its biggest competitors and saying that Apple’s business is increasingly focused “on gaining share in apps and services against us and other developers.”

“Apple has every incentive to use their dominant platform position to interfere with how our apps and other apps work, which they regularly do to preference their own,” Zuckerberg added.

Zuckerberg also singled out Apple’s iMessage for storing “non-end-to-end encrypted backups of your messages by default unless you disable iCloud.” He noted that WhatsApp, which has had its own issues lately, was clearly superior at protecting people’s messages.

Photo: Pxhere

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