'The DOJ's Assault On Apple Will Harm Consumers'

Longtime Slashdot reader SonicSpike shares an op-ed from Reason, written by Sen. Rand Paul: In America, we do not punish businesses for their success. We certainly do not punish businesses because their competitors are struggling to keep pace. Sadly, that is exactly what the Department of Justice (DOJ) is attempting to do in its recent lawsuit against Apple. In March, the DOJ, joined by 15 states and the District of Columbia, filed a lawsuit aimed at penalizing Apple for successfully competing in the market for smartphones. However, like much of the Biden administration's approach to antitrust enforcement, the DOJ's lawsuit is focused on punishing Apple for its success rather than addressing any real harm to consumers. Instead of fostering innovation and competition, this approach threatens to stifle the very progress that benefits Americans.

In its lawsuit, the DOJ makes the unsubstantiated claim that Apple has 'willfully monopolized' the smartphone market through 'exclusionary' and 'anticompetitive' conduct. In particular, it accuses Apple of exercising unwarranted control over the creation, distribution, and functioning of apps within the iPhone operating system. What the complaint ignores, however, is that this control is not simply a lawful business practice by a privately held company; it is an indispensable part of Apple's business model. Far from being an 'anticompetitive' practice that harms consumers, Apple's careful approach to app integration is a pro-competitive way in which it meets its users' demands.

Privacy, security, and seamless integration have been the core of Apple's operational strategy for years. Back in 2010, Steve Jobs explained that 'when selling to people who want their devices to just work, we think integrated wins every time.' That 'open systems don't always work,' and Apple was 'committed to the integrated approach.' What makes Apple products so unique is their ease of use and consistency over time. While no product will ever be perfect, Apple's goal is to deliver a seamless, integrated experience that users can rely on time after time without giving it a second thought. How does Apple do this? By carefully exercising the very control that the DOJ is trying to punish. As economist Alex Tabarrok explains in Marginal Revolution: 'Apple's promise to iPhone users is that it will be a gatekeeper. Gatekeeping is what allows Apple to promise greater security, privacy, usability and reliability. Gatekeeping is Apple's brand promise. Gatekeeping is what the consumer's are buying.' 'Digital markets do not need more government regulation; they need more companies willing to innovate and compete,' concludes Sen. Paul. 'The DOJ should not waste taxpayer-provided resources targeting a company that has earned its success through excellence in the marketplace. An Apple a day may keep the doctor away, but it seems that all of the pro-competitive justifications in the world cannot keep a politically motivated antitrust enforcer at bay.'

Read more of this story at Slashdot.