The American government has targeted Apple in a “sweeping anti-trust” investigation and it could have major ramifications for iPhone users around the world.

The Justice Department (DOJ), the top law enforcement agency in the United States, is in the late stages of an investigation into Apple that could result in anti-trust charges this year, according to The New York Times.

The investigation is examining whether the software giant broke the law by limiting the ability of competitors’ devices to interact with the Apple eco-system, including its payment systems, smart watches and iMessage service.

Federal representatives from the Democrat and Republican parties urged the Justice Department to investigate Apple blocking Beeper Mini, an app that allowed Android users access to the iMessage service, and examine if it broke the law by limiting competition to its products.

The DOJ launched its anti-trust investigation into Apple on December 22.

Investigators have been looking into Apple creating a closed ecosystem for its products. Photo: Getty

Curation or restriction?

Tim Cook, Apple CEO, believes that the tight control over the apps its users can download is part of the experience.

“Curation has always been one of the App Store’s chief features and sources of value for our users,” he told Congress in 2020.

“We wanted to create a safe and trusted place for users to discover apps.”

DOJ has aggressively pursued anti-trust charges against Google in two different anti-trust lawsuits and another federal body, the Federal Trade Commission, is suing Amazon for abusing and holding a monopoly.

Apple CEO Tim Cook told Congress that users expect a curated experience in the App Store. Photo: Getty

Multiple fronts

The European Union (EU) introduced laws in 2022 that could force the Apple Store to be opened up to third parties, with Japan and South Korea considering similar measures.

Apple has faced increased scrutiny and challenges in recent years, with the largest – at least so far – coming from the EU.

The company’s resistance towards adopting universal charging standards led to a years-long battle with the EU, but Apple ultimately introduced USB-C on new devices from the iPhone 15 onward.

The EU isn’t stopping there, however, and newly introduced laws in the jurisdiction could force the Apple Store to be opened up to third parties, with Japan and South Korea considering similar measures.

Thierry Breton, the EU’s industry chief, told Apple it must “open up its gates to competitors”.

“The next job for Apple and other Big Tech, under the DMA is to open up its gates to competitors,” he said.

“Be it the electronic wallet, browsers or app stores, consumers using an Apple iPhone should be able to benefit from competitive services by a range of providers.”

European regulators forced Apple to change from its lightning charger to USB-C, with global ramifications. Photo: Getty

Roads ahead

If charges are filed, it will be the second time the Justice Department has sued Apple, after the tech giant was accused of working alongside book publishers to raise the price of digital books.

The result was Apple paying out a $US450 million settlement in 2012.

According to The New York Times, Meta – which owns Facebook and Instagram – encouraged the Justice Department to pursue the issue after Apple’s new privacy tool allowed users to choose which apps can track them and harvest data.

Meta claimed it could lose $10 billion in revenue because of the changes and advertising companies have called the tool anti-competitive.

The potential of another blockbuster anti-trust suit follows Epic Games, the makers of Fortnite, successfully suing Google for limiting competition and extracting fees on its Play mobile app store.

Pending appeal, major changes could be coming to Android and iPhone offerings as a result.