JOIN OUR WHATSAPP CHANNEL
DOJ-Apple's clash opens opportunities for Netflix and Spotify; Deets here
The Department of Justice's (DOJ) antitrust lawsuit against Apple is opening up opportunities for streaming giants Netflix and Spotify. Here's what you should know.
-
DOJ's antitrust lawsuit against Apple creates opportunities for Netflix and Spotify
-
Apple accused of monopolistic practices in smartphone market, including control over app fees
The United States Department of Justice (DOJ) has filed an antitrust lawsuit against tech giant Apple, signaling potential changes in the smartphone and entertainment industries, as per the Hollywood Reporter. The lawsuit targets Apple's alleged monopolistic practices and could have far-reaching consequences for companies such as Netflix and Spotify.
Antitrust lawsuit unveiled
The DOJ, along with 16 states and the District of Columbia, has accused Apple of having monopoly power in the smartphone market. "This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets," the company said in a statement. The lawsuit claims that Apple's practices limit consumer choice and innovation, especially in the entertainment industry.
The DOJ is particularly concerned about Apple's expansion into entertainment, which includes the launch of its subscription video service, Apple TV+, as well as its own internal studio. The company's aggressive pricing strategy and bundling tactics have prompted comparisons to competitors such as Amazon Prime Video, raising concerns about fair competition.
Impact on Netflix and Spotify
The DOJ's legal action against Apple creates an opportunity for streaming giants such as Netflix and Spotify. Apple's alleged anticompetitive behavior, including the imposition of fees on in-app purchases, has prompted criticism from companies such as Netflix, which has stopped allowing subscriptions through iOS devices to avoid these fees. 
Spotify has also faced challenges because Apple's policies prohibit linking to discounted rates and alternative payment methods within its app. The DOJ's lawsuit may level the playing field for these streaming services, allowing them to operate more freely and offer competitive pricing to customers.
"Complying with Apple's terms means that if you're an independent filmmaker or musician, you're dealing with a whole lot of platforms, like Spotify," says Lee Hepner, a lawyer at the American Economic Liberties Project.
Implications for the entertainment industry
Beyond streaming services, the DOJ's case against Apple has far-reaching implications for the entertainment industry. Apple's control over its ecosystem, including app fees and revenue-sharing requirements, may result in higher consumer prices and fewer incentives for content creators.
The lawsuit raises concerns about Apple's dominant position and its impact on competition and innovation. If successful, the DOJ's efforts could change the dynamics of the smartphone and entertainment markets, increasing competition and consumer choice.
ALSO READ: Apple's next moves for Vision Pro; Job postings hint at launch in these countries
Know more about DOJ's lawsuit against Apple:
Latest Articles
