The US Department of Justice (DOJ) lawsuit against Apple is arguably the biggest tech antitrust case since the battle with Microsoft at the turn of the century. Regulators are effectively calling into question Apple’s core business model — the company may have to rework some of its tightly integrated ecosystems.
How much difference will it make? Depending on how the case is resolved, it could significantly affect how you use your iPhone, although it may not be as big of a deal as you might think.
More choices for apps, with limitations
The DOJ’s lawsuit largely revolves around Apple’s control over third-party iPhone apps. Outside the European Union, where officials have already forced Apple to loosen its policies through the Digital Markets Act, you’re limited to downloading software through the company’s official App Store. Moreover, Apple places limits on what third-party apps can do on your iPhone. Among other programs, you cannot use comprehensive “super apps”, certain digital wallets or third-party SMS messaging apps.
The DOJ claims that Apple is stifling developers by degrading the quality of apps that could compete with Apple’s own, especially if they could help iPhone users switch to Android or make people less dependent on Apple devices.
If successful, the DOJ could demand that Apple allow third-party app stores like those on Android (and soon iPhone in the EU). You could have a wider selection of apps, especially titles that Apple wouldn’t normally allow.
Regardless of where you get your apps, they can also improve your capabilities. They could multitask in the background, amass a collection of widgets, or offer SMS messaging on top of an online chat service. You wouldn’t have to rely as much on Apple’s software, and as a result, it might be easier to switch to Android.
“Apple will be forced to open up its ecosystem,” says Hanish Bhatia, associate director at Counterpoint Technology Market Research. “This means greater interoperability across different ecosystems for payments, apps, messaging and devices.”
That said, don’t expect a complete overhaul of the iPhone app market. In some respects, it may not change much at all. Techsponential founder and lead analyst Avi Greengart notes that this isn’t the first time Apple has faced a legal challenge over its app distribution policies. “Some of these issues have already been raised in litigation with Epic, a case that Apple won,” he says. The tech giant may only have to make limited concessions, such as allowing in-app purchases from other service providers.
Don’t count on Apple to rush to open up its platform, even if it is legally required to make sweeping changes. In the EU, the company requires authorization for third-party developers on the market and notarizes applications to verify privacy, security and fairness. Creators in the region must also request deeper access to the iPhone’s hardware and software features, and only larger developers (those with at least a million installs) can distribute apps over the web. While there will be more choices, you still won’t find as much freedom as on other platforms.
Better smartwatches for iPhone
The Apple Watch is widely regarded as the best smartwatch for the iPhone, not only because of its own functionality, but also because watches from other manufacturers don’t perform as well. Notification responses, mobile access and battery saving features are limited to competing wearables.
As the DOJ points out, the Apple Watch does not support Android. You’re less likely to switch to a competing phone if you have to replace an Apple wristband at the same time.
A successful lawsuit may require Apple to give other smartwatch designers greater access to iPhone features. If so, you can buy a third-party model that not only offers more functionality on the iPhone, but could still be just as useful if you buy an Android phone. This in turn could increase diversity and encourage competition.
But that won’t necessarily lead to Apple Watch support on Android. While the DOJ claims in its lawsuit that Apple uses the smartwatch to keep iPhone users loyal, it does not require compatibility with Google-powered devices. Like it or not, you may still have to ditch the Apple Watch if you lose interest in the iPhone.
More powerful messaging and wallet apps
While the DOJ wants to improve third-party iOS apps overall, it singles out issues with messaging and wallet apps.
Only Apple’s own Messages app can offer both Internet and SMS messaging on the iPhone. Without iMessage on Android, you risk missing out on conversations if you leave your iPhone behind. You also lose media quality and useful features like encryption and typing indicators.
The antitrust case could improve things by allowing third-party apps with SMS and wider iMessage support. You wouldn’t have to switch between Apple Messages and your preferred chat app just to keep in touch with friends, and you could keep in touch from Android if iMessage comes to that operating system.
Meanwhile, third-party digital wallet apps do not support touch payments on iPhones outside the EU. You must use Apple Wallet for this benefit. The DOJ could push Apple to enable the feature, allowing you to switch to Android while taking your cards, IDs and other data.
Whether those changes will happen is another story. Apple recently committed to supporting RCS on the iPhone later in 2024, promising most of the iMessage feature set (such as higher quality media and typing indicators) in a true cross-platform standard. However, Apple has not committed to expanding support for iMessage or SMS. Tap-to-pay is more likely though, given that Apple is already opening up the feature to third-party apps in Europe.
But will the DOJ prevail?
However, there is one major caveat to all these potential improvements: They assume that the DOJ will emerge victorious. It is far from guaranteed. Greengart says there are no “clear-cut” cases that Apple has a monopoly or is harming consumers in a way that violates antitrust law. Officials claim that Apple, for example, has more than 70% of the US “performance smartphone” market, but that share shrinks to about 65% for the overall market. Bhatia adds that proving these cases is “very complex”.
Apple won’t cooperate, that’s for sure. The company says the antitrust suit is “wrong in fact and law” and intends to fight it. Greengart adds that those regulatory battles also take a long time, and consumers are “far away from the drugs,” if they happen at all.
However, there can be a ripple effect in the industry. Bhatia believes the DOJ’s lawsuit against Apple will be “closely watched by the big tech company” because it could easily set precedents for how antitrust law applies to their business. This could affect other apps and devices you use, not just those on your iPhone.