- Apple is facing a significant antitrust lawsuit from the DOJ and 16 state attorneys general.
- The iPhone experience would likely change in a big way if Apple lost.
- Apple’s loss could open up a new world of apps, cheaper subscriptions and better wearable technology, some industry supporters say.
Apple’s notoriously tight grip on the iPhone could soon be violently loosened.
The US Justice Department has hit the tech giant with an 88-page antitrust lawsuit that could drastically change the iPhone user experience if Apple loses the legal battle.
For those who don’t want their iPhone changed at all, it’s likely to take many months or even years before the dispute is resolved.
But if Apple loses, it will likely be forced to change the way its hugely popular smartphone works.
The iPhone maker has argued that changes to the way the iPhone works would harm the device’s security and user experience, but there are plenty of people who believe there are benefits to tearing down its so-called walled garden.
Look no further than what recently happened in the EU, where regulators forced Apple to ditch its proprietary Lightning cable in favor of a more standard USB-C charging port — allowing people to use the same cable to charge their MacBooks and iPhone 15.
But it happens from the inside It’s the iPhone — how third-party apps and services are downloaded, paid for and interact with other devices — that could face the biggest changes if Apple loses the case or makes major concessions in the settlement.
Here’s how your iPhone could get better as a result.
Overall lower prices
The DOJ claims in its lawsuit that Apple illegally maintained a monopoly on the smartphone market through anti-competitive measures that lead to higher prices for iPhone owners.
“Consumers, if you ask them if they want to pay less for their iPhone, the answer will be yes,” Jonathan Kanter, an assistant US attorney for the DOJ’s antitrust division and the man leading the lawsuit against Apple, said in an interview with CNBC on Friday.
“Competition leads to lower prices for consumers, lower prices for developers, more opportunities for entrepreneurs and ultimately more innovation that benefits society,” Kanter added.
More payment options with touch
The changes Apple made to the iPhone as a result of the European Union’s lawsuit against it provide the best glimpse of what the potential changes might look like.
In order to comply with the EU’s Digital Markets Act, the tech giant was forced to give up its “gatekeeper” status in the EU and make its operating system more accessible to third parties.
Instead of your digital debit card being accessible only to your Apple Wallet, you can tap and pay from your own banking app or another third-party digital wallet.
Revealing how your iPhone’s NFC chip works would also mean you could add digital car keys to a third-party app from a car manufacturer, rather than having to use them through Apple’s Wallet app.
Get involved in other app stores — and Fortnite
You’re not forced to use Apple’s digital storefront when you want to download an app to your Mac or PC — so why should you be forced to only use the App Store on your iPhone?
“I believe there’s a strong possibility that we’ll see brand new iOS apps that can’t exist today because of Apple’s rules, especially from indie developers,” Riley Testut, an indie iOS developer who makes alternative app store AltStore Insider, told Business.
As it stands, iPhone owners in the US can only download apps from the iOS App Store — developers must follow Apple’s rules to market their app exclusively.
If Apple were to make the same changes it has made for iPhone owners in the EU, iPhone users in the US could use other marketplaces to discover and download apps — such as Fortnite’s rival app store Epic Games, which it plans to launch in the EU, along with the return Fortnite on iOS.
The DOJ’s complaint alleges that Apple makes it harder and more expensive for consumers and app developers to operate outside of the App Store.
In a world where Apple has lost its battle with the DOJ, it’s possible that developers can make money from in-app purchases without Apple taking a cut, or that much of a cut, and avoid the company’s fees when it comes to processing payments.
“This signals that Apple will have to lower its prices for other apps,” Jamie Court, president of the nonprofit Consumer Watchdog, told the LA Times when discussing the lawsuit. “They will need to open up their payment systems to other service providers and will need to ensure that people using other devices have fundamentally comparable access to benefits and services.”
Green bubbles could be a thing of the past
iPhone users have complained over the years about green message bubbles, grainy videos and unencrypted messages when texting their Android friends.
Apple has already said it plans to improve messaging between Android and iPhone by adopting RCS, but losing the antitrust case could mean Apple finally brings iMessage to Android, something it has considered in the past.
Or Apple could take a less drastic step and simply change things so that everyone gets a blue text bubble, and images and videos sent between iPhone and Android are no longer grainy.
More smartwatch options
The Google Pixel Watch and iPhone don’t work as well together as the Apple Watch and iPhone.
If the Apple Watch isn’t your cup of tea, a court loss for the company could make it easier to use an alternative watch with the iPhone.
Prosecutors said the Apple Watch is too dependent on the iPhone while other smartwatches aren’t nearly as compatible with iOS.
So if you’ve had your eye on an Android smartwatch but prefer an iPhone, regulators may end up forcing Apple to make the devices work better with each other.
Streaming subscriptions could get cheaper
Using your iPhone could also be cheaper.
A subscription to your favorite streaming service could be a little cheaper if Apple loses its battle with the DOJ.
Earlier this month, the European Commission fined Apple nearly $2 billion after an investigation found its restrictions prevented developers from offering “alternative and cheaper music subscription services available outside the app,” it said in a press release.
iOS users may have been overcharged for music streaming subscriptions because of fees Apple imposed on app developers, regulators said.
App developers could be even more creative
With fewer restrictions and less control from Apple, app developers could change that even more — and perhaps reduce the number of times Android users have boasted about enjoying a “new” iPhone feature for years.
Testut, an alternative app store developer, said app makers would have fewer barriers to innovation on the iPhone if Apple loses.
“I hope we’ll see more freedom to experiment with new ideas — which will almost certainly lead to innovation that benefits everyone,” he told BI.
Not everyone agrees that the iPhone would benefit from a forced unlock in the US.
Apple says that, if successful, the DOJ lawsuit would make things less seamless and secure — an argument that some say would essentially result in an inferior iPhone.
“This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” Apple told BI in a statement. “If successful, it would impede our ability to create the kind of technology people expect from Apple — where hardware, software and services intersect.”