The US Department of Justice (
DoJ
) is reportedly in the "late stages" of investigating
Apple
for its "
walled garden
" approach and is planning to sue the iPhone maker. The case is expected to be filed as early as March, as per Bloomberg, pending approval from senior officials within the
antitrust
division.
The agency has been investigating the company since 2019.
Attorneys from the Department of Justice and Apple have reportedly had three meetings, as reported, about the potential
lawsuit
. The investigation focuses on Apple's control over both hardware and software services, as reported by the New York Times, and how its "walled garden" approach has made it more difficult for competitors to compete and for customers to switch to competing products.
The Justice Department is planning to file a lawsuit in the first quarter of the year against a company, which could be as early as March. However, the report notes that there could be a potential delay as the top antitrust officials have not yet approved the complaint.
The antitrust agency alleges that Apple has imposed software and hardware limitations on its iPhones and iPads to impede rivals from effectively competing, echoing concerns raised by Spotify, Tile, and
Beeper
.
In 2019, Spotify filed a competition complaint with the European Union, alleging that Apple's in-app payment system breached antitrust laws. Similarly,
Epic
Games, the creator of Fortnite, also filed a civil litigation against Apple, claiming that the company's App Store rules violated federal antitrust statutes. Beeper, too, had issues with Apple, as it made the company shut down its iMessage app for Android.
Sources have told the New York Times that executives from Beeper and Tile, who have had disagreements with Apple in the past, have spoken with investigators from the Department of Justice (DOJ). The DOJ has also allegedly held talks with banking and payment apps about Apple prohibiting competitors from using tap-to-pay on the iPhone. Furthermore,
Meta
is said to have urged the DOJ to investigate Apple's App Tracking Transparency (ATT) privacy tool during their meetings.
This antitrust lawsuit against Apple will be more extensive than previous legal challenges. The DOJ plans to target Apple's successful business model, which combines the iPhone with other devices like the
Apple Watch
and services like Apple Pay.