- The US has hit Apple with a lawsuit for breaking anti-trust laws.
- If Apple loses, it presumably has to open its ecosystem features to the market.
- Google could take on this opportunity to establish a strong Pixel foothold by offering great devices at relatively cheaper prices than iPhones.
From the Spotify lawsuit last month to the EU forcing USB Type-C adoption, enabling sideloading, and third-party app stores, Apple’s legal woes continue to mount. Just as we thought the dust would settle, the US government hit Apple with a lawsuit that accuses Apple of breaking the anti-trust laws by “blocking rivals from accessing hardware and software features of its iPhone” and for having a monopolistic approach. While we will barely dwell upon the same, let’s explore how Google can capitalize on this situation and solidify its market position.
What Is the Apple Lawsuit All About?
According to the 88-page complaint released by the US, Apple’s monopoly breaks anti-trust laws, and the company abuses customers and developers by locking them into the App Store, charging them a fixed commission fee on transactions.
Besides, the document also highlights how Apple makes almost all its software and hardware impossible to work with others, be it the Apple Watch or iMessage, creating a kind of “social stigma” that directly benefits the firm.
Some of the other complaints were how Apple blocks cloud gaming apps on the App Store and forces and locks people into their ecosystems which immensely benefits the company.
It is important to remember that the lawsuit did not come into action due to the Department of Justice but because of companies like Beeper, Spotify, and Tile accusing Apple of bad industry practices and flexing its monopoly.
Is the lawsuit justified? I’m no expert. However, being an Android user, iPhone users would instantly label my opinions as polarising. I think some things highlighted in the lawsuit need the department’s attention. Take the Green-Blue bubble controversy, for example.
What Apple does is discriminatory and it’s quite apparent that the giant wants people to switch to iMessage by purchasing an iPhone. It’s obvious that Apple fears the thriving competition in the market and hence won’t open up the ecosystem for its benefit. I’m not saying Google is better nor do I mean Apple needs to bow down and give up on what it has built. But I do have a problem with how Apple rolls and tries to shut the competition with its monopoly.
Lawsuit Thins the Line Between Android and iPhone
Apple has already released a statement saying “We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it,” but, a potential loss could significantly impact the company’s future. Let’s explore some possible scenarios.
- Apple opens up iPhone features and its hardware ecosystem.
- Services like Apple Pay, iMessage, and other apps would be available on Android.
I don’t blame you if you giggled while reading the above pointers. It sounds impossible, and I’m sure Apple will figure out a way, a possible loophole through this, but the chances of escaping are not 100%. A man can dream, though.
If the court’s decision does thin the line between Android and iPhone, we might see bulk platform migrations, since it’s given that people would be more willing to pivot from iPhones to give other manufacturers a shot.
Setting the Tone for Future Pixels
This is an opportunity that Android manufacturers, especially Google wouldn’t want to miss out on. Google has worked hard to raise the Pixel’s market share to the current 5% in the USA, according to the IDC. Launching targeted devices could attract iPhone users considering a switch. A sub-$500 Pixel A-series phone might be particularly appealing, offering a compelling alternative to the potentially redundant $799 iPhone upgrade.
Nothing is perfect and Pixels are known for having issues with both hardware and software. If the gap between Android and iOS narrows, some users might prioritize other Android options that offer stronger hardware. This could still benefit Google’s overall Android ecosystem. However, others accustomed to iOS might simply stick with iPhones.
If Apple loses, people would only have to bother with the pricing and the value the device brings to the table. If users are able to use iMessage, FaceTime, Apple Pay, and AirDrop on Android phones, it would largely mean that someone who has found themselves stuck in the Apple ecosystem might be willing to switch to other budget Android alternatives. Google’s A-series devices, hopefully, could be able to fit right in the gap and Google can capitalize on the Android-ification of iPhones.
Sadly for the Cupertino giant, this would translate to heavy losses due to a decline in sales. We’re just shooting arrows in the air but the idea of having iPhones and Androids working together excites me.
There’s not much Google needs to do except continue developing useful ecosystem features. The Pixel 9 could feature the last Samsung-made Tensor SoC, the G4. Google is working on making its own SoCs based on TSMC’s process, which should hopefully fill the hardware gap in Pixels. And lastly, Google needs to keep the pricing in check.
What are your thoughts about the US’ latest lawsuit against Apple? Do you think it’s absurd or is it justified? Let us know your thoughts in the comments.
