Apple loses 150 trillion won in market cap overnight

The U.S. Department of Justice considers all kinds of Apple’s activities to confine its users to the company’s ecosystem by combining its hardware, such as iPhones and iPads, and independent operating system (OS) as antitrust activities. Unlike the European Union, which recently announced that Apple would be the first big tech company to be investigated for the violation of the Digital Markets Act regarding Apple’s monopoly over its App Store and fee charging, the department said the company’s antitrust activities are widely being conducted across various areas.

Apple currently accounts for 65 percent of the U.S. smartphone market. As compatibility with competing OSs, such as Microsoft Windows, is blocked, Apple users are stuck in the Apple community and find it hard to buy other companies’ products. The Department of Justice believes that this constitutes anticompetitive behavior.

In particular, the department found issues with Apple’s messaging app, iMessage, which slows the speed of sending messages and downloading videos for Android users and distinguishes Android users in green and Apple users in blue.

In addition, the department pointed out that Apple prevents the development of super apps, which combine multiple functions, such as messaging and social media, and serve as a platform (e.g., WeChat). It also mentioned that MS Xbox and other cloud-based games are difficult to play on iPhones. It also mentioned the incompatibility of iPhones with Samsung Galaxy Watch and other smartwatches.

U.S. Justice Department antitrust chief Jonathan Kanter, who led the lawsuit, has highlighted the pivotal role of antitrust regulations in the U.S.’s economic development. He has also emphasized that these regulations have played a significant part in Apple’s growth. The regulations have a history of breaking up monopolies, including the largest energy company in the U.S., Standard Oil, and a large telecommunication company, Bell System. Kanter added that the U.S. authorities intervened in MS’s monopoly in the 1990s, which allowed Apple’s iPod, then on the verge of bankruptcy, to install iTunes on Windows, creating a growth opportunity for Apple.


Hyoun-Soo Kim kimhs@donga.com