Apple has been under fire lately from their Apple Watches infringing on patents to iMessage being forced to adopt RCS and work better with Android phones. iPhone being forced to allow sideloading and third-party app stores. And now, the New York Times reports that the Department of Justice is preparing an antitrust lawsuit against Apple, which could completely break Apple’s exclusive ecosystem. What is next for Apple, and will their exclusive ecosystem end?
What makes Apple Apple is not their hardware, not their software. It is their ecosystem. The exclusivity around it attracts customers who want to be a part of that brand, but the simplicity, security, and ease of use make the ecosystem so strong. But over the years, Apple has come under fire for being anti-competitive and blocking or taking out any competition that even comes close to breaking apart their hold on customers. But the cracks in the armor are starting to show.
The Apple Watch in Limbo
The Apple Watch is in limbo right now due to a patent controversy that could have been avoided. Apple is the richest company in the world, but when it comes to paying those who they deem patent trolls, they will move heaven and earth not to do it. Massimo patented the technology around the blood oxygen sensor that goes into the Apple watch. However, instead of Apple paying the company for the technology, They hired Massimo employees to take it right from underneath them. Right now, the Apple Watch’s future is up in the air, but this has implications for the future of Apple far beyond this lawsuit, as Apple is working on building its ecosystem around your health data.
Apple’s Blue and Green Bubble Controversy
One of the Apple Ecosystem’s most significant parts and exclusivity is its proprietary blue message bubbles or iMessage. For years, Apple has refused to adopt the new technology that would make it a better experience for their users to text people who do not have iPhones—creating the ultimate walled garden. The European Union has been evaluating Apple under a microscope for a long time now, and one of the changes they are forcing Apple to adopt is RCS technology. RCS technology is a new global technology standard for texting that incorporates better security around your text and higher-quality media and messaging features. Apple will always make Imessage bubbles blue and Android messages green, but the functionality and poor texting experience on an Android phone will significantly improve over the coming years.
The World is forcing a more open iPhone
The iPhone and IOS have been under strict access for years. Developers can’t just make any app they want on the App Store. But all that might be changing soon as the European Union recently adopted a new law regulation called DMA, Digital Markets Act, which forces smartphone companies to allow users to download any apps they want onto their phones. Japan and other countries, including the US, want to adopt similar laws allowing for a more open app store and phones. Users will soon be able to sideload apps onto the iPhone. Sideloading an app means downloading an app from a website outside the app store and loading it onto the phone, bypassing Apple’s restrictions. In addition, companies could start creating their own app stores, bypassing the Apple App Store. Apple is already getting ahead of these laws and has started implementing this ability for users with its last update.
Department of Justice Anti-Trust Lawsuit
The Department of Justice is now looking into Apple for its anti-competitive practices. According to the New York Times, the Department of Justice is expected to file a lawsuit against Apple in the first half of this year. The Justice Department has been investigating Apple for a while now on how Apple leverages its devices and software to block competition. For example, the Apple Watch doesn’t pair well with other phones. Also, how Apple stifles competition regarding payment systems. This lawsuit could be the most significant blow coming down the road for Apple and its ecosystem.
Where does Apple go from Here, and Will This Be the End of Apple’s Ecosystem
Apple is going to try desperately to keep its ecosystem intact. They have enough money to side-step, keep in court, or do what is minimally required to keep things as they are. Apple, for example, will allow third-party app stores on the phone but only for select enterprise customers whose apps will still have to be approved by the App Store. Apple will also still distinguish IMessage from Android messages on the iPhone. The ecosystem is vital for Apple’s business, but an argument could also be made for the users. Users can buy any smartphone, but customers purchase iPhones for their ecosystem and to streamline everything for the users. No one knows how this will all end, but one thing is for sure: the exclusivity of the ecosystem that we are all used to will be different in the future, and more access and a more open Apple is coming.
