The U.S. Justice Department could bring a broad antitrust lawsuit against Apple Inc. over its business practices in the mobile market, the New York Times reported today.

Three sources familiar with the matter told the paper that officials may file the lawsuit as soon as the first half of 2024. According to the report, the potential litigation is connected with an antitrust investigation that the Justice Department opened into Apple in 2019. The probe is said to be nearing completion.

According to the Times, the probe seeks to determine whether Apple used unfair tactics to protect the iPhone’s market share. As part of their investigation, Justice Department officials have reviewed not only the smartphone market but also several of the other segments where the company competes. 

One focus of the probe was the wearables segment. An Apple Watch can be used to view notifications from a linked iPhone, reply to texts sent to the smartphone and perform related tasks. Third-party smartwatches reportedly can’t be integrated as closely with an iPhone, which might give the Apple Watch an unfair competitive advantage.

The company’s Tap to Pay technology is reportedly also a focus of the Justice Department’s probe. Introduced in 2022, the technology allows users to pay at stores by holding their iPhone, Apple Watch or payment card next to the merchant’s iPhone.

Justice Department officials have reportedly held talks with banks and payment app providers about Tap to Pay. According to the Times, the discussions focused on the fact Apple doesn’t make the technology accessible to companies that compete with its own mobile payment system. That interoperability restriction has also drawn scrutiny from antitrust officials in the European Union.

The Justice Department’s probe reportedly encompasses other areas as well. As part of the investigation, officials are said to have scrutinized Apple’s ban on cloud gaming services in the App Store. The Justice Department also reviewed the integration that the company provides between the iPhone and its AirTag tracking device, which is more advanced than integration offered by AirTag rivals.

Antitrust officials reportedly met with Apple representatives multiple times in connection with the probe. However, it’s believed that the parties haven’t yet held the “final meeting” that would precede the launch of an antitrust lawsuit. The Justice Department is still working to determine whether the lawsuit should be filed and, if so, what allegations it would include.

The Times’ sources added that the investigation’s resolution could be affected by the antitrust scrutiny Apple is currently facing in the EU. Regulators in the bloc are focusing on the App Store and iPhones’ Tap to Pay mobile payment technology. Last month, Reuters reported that Apple has offered to change some business practices related to Tap to Pay in a bid to stave off an EU antitrust fine. 

Photo: Pixabay