Tech Journalist Mossberg Dismisses DOJ’s Antitrust Claims Against Apple
Introduction
The Department of Justice (DOJ) recently filed an antitrust lawsuit against Apple, accusing the company of using its monopoly power to stifle competition among smartphone manufacturers. However, not everyone agrees with this assessment, including renowned tech columnist Walt Mossberg.
Mossberg’s Perspective
Walt Mossberg, a respected figure in tech journalism with nearly 30 years of experience, finds the DOJ’s claims unfounded. In a series of posts on Threads, Mossberg described the notion of Apple being a monopoly in the smartphone market as “laughable.” He highlighted that independent analysts estimate Apple’s iPhone market share to be just over 50% in the US and under 25% globally, which does not constitute a monopoly.
Differentiating Factors
Mossberg pointed out that Apple’s business model has always been about providing a seamless, integrated digital experience rather than a platform for extensive user modifications. This approach differentiates Apple from companies like Microsoft and has been consistent since the 1980s. He argued that the DOJ’s concerns about Apple’s ecosystem advantages, such as features that work best within Apple products, do not warrant government intervention. He drew a parallel with Gmail, which functions optimally within its dedicated app.
Narrow Market Definition
The DOJ’s lawsuit focuses on what it terms the “performance” phone market, referring to expensive smartphones. The lawsuit claims that Apple holds a 70% market share in this segment in the US. Mossberg criticized this definition, comparing it to labeling a top-selling high-end wine as a monopoly despite it having a modest overall market share. He also questioned the expectation that Apple should make its proprietary technologies like iMessage available to competitors.
Legal and Philosophical Considerations
Mossberg acknowledged that he is not a lawyer and conceded that Apple might be found in violation of specific laws. However, he believes the core issue of the lawsuit is Apple’s product and service philosophy, and the case appears to penalize Apple for not adopting a business model similar to its competitors.
Broader Industry Views
Mossberg is not alone in his skepticism about the DOJ’s case. Steven Sinofsky, former president of the Windows Division at Microsoft, also criticized the lawsuit in his newsletter “Hardcore Software.” Sinofsky argued that the DOJ’s action seems politically motivated, stemming from a broader initiative to target “Big Tech” rather than based on solid legal grounds. He suggested that the market benefits from having two dominant players—Apple and Android—each offering different approaches and satisfying a wide range of customers.
Conclusion
The DOJ’s antitrust lawsuit against Apple has sparked significant debate among industry experts. While the government aims to curb what it perceives as monopolistic practices, influential voices like Walt Mossberg and Steven Sinofsky challenge the validity and motivation behind the case. As the legal battle unfolds, the tech industry will closely watch its implications for Apple’s business practices and the broader market.
