Is the era of "punishing" Big Tech quietly ending?
Yesterday I shared the news that the US Department of Justice and Apple were looking for a settlement. Thinking about it, these could be signs of the end of the era of sanctions.
Such a small belief, but when put together, I think it's worth thinking about
Yesterday, when I read the news that Apple and the US Department of Justice were in the early stages of negotiations to settle a monopoly lawsuit filed in 2024, I was not surprised as much as wondering: how many times has this happened? The original lawsuit accused Apple of limiting "super apps", which are basically multi-purpose applications that integrate many services in one platform, limiting gaming via cloud computing, favoring its own Messages application over third parties, and tying e-wallets to non-company smart watches. This was once considered one of the most serious monopoly lawsuits targeting Apple. But now the two sides are exchanging draft agreements, and Apple has been trying to come up with multiple settlement proposals since the beginning of the year. I don't think this is a single event but a signal of a further trend.
The US Department of Justice in recent years has been involved in lawsuits related to Big Tech such as Google and Apple If you look at the Apple-DOJ case alone, it might just be a routine part of the legal process. But if you put this case next to other cases such as Google's search engine monopoly lawsuit, which many antitrust campaigners expected would lead to forcing Google to sell the Chrome browser or split up the advertising segment, the final result is much gentler than what people initially envisioned, with no separation of the company. And now, it is Apple's turn to move in the direction of compromise instead of confrontation to the end.
But then they are looking for a settlement instead of a long-term lawsuit with Apple In addition, there is an important detail to mention: Apple just won a legal battle over access to competitive market data from more than a dozen federal agencies, including the CIA and the Pentagon, which gives Apple more negotiating leverage right before entering the deal table. And the third Justice Department official currently in charge of the monopoly described favoring settlements over protracted litigation, citing budget savings and faster benefits to consumers. Sounds very reasonable on paper. But I still find something wrong when three consecutive big stories in the US technology industry all end with a handshake instead of a deterrent verdict.
Ironically, Europe is going in the opposite direction
A more notable point is the contrast between the two sides of the Atlantic. While Apple is looking for a peaceful settlement with the US, the European Union court has just rejected Apple's appeal, upholding the classification of iOS and the App Store as "gatekeepers" under the Digital Markets Act, a tough ruling that forces Apple to further open up its app stores, payment systems, and interoperability between platforms. And to be honest, from the user's perspective and with the payment problems I've experienced, I think Apple's tightening of payments is a completely beneficial point for users.
In contrast, Europe persists with the path of sanctions And with Europe's approach, Apple itself, the same company, is being handled in two completely different ways in two of the tech world's largest jurisdictions. To me, this suggests that the "level of severity" with Big Tech is no longer a story of absolute justice, but a story of the political context of each place, each time and possibly the lobbying behind it.
Who really benefits from these arrangements
Frankly speaking, those who were hoping for a major market "surgery", for example forcing Apple to separate the App Store into an independent entity, or forcing Google to sell off the browser segment, will almost certainly be disappointed with this information.