US accuses Apple of monopolising smartphone market | BBC News

BBC News6 minutes read

Apple is facing accusations of maintaining a monopoly in the smartphone market through anti-competitive practices, impacting consumers and developers. The company enforces exclusionary practices, limits app functionality, and collects a 30% commission on downloads, hindering competition and user experience.

Insights

  • Apple's iPhone sales account for a significant portion of the company's annual revenue, holding a dominant position in the US smartphone market with over 70% share in the performance segment and over 65% overall.
  • Apple's anti-competitive behavior, including imposing high fees on developers, restricting features, and limiting access between third-party apps and the iPhone's operating system, has led to accusations of maintaining a monopoly in the smartphone market, resulting in higher prices, limited choices, and lower quality for consumers.

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Recent questions

  • How does Apple generate revenue?

    Apple's iPhone sales contribute significantly to its annual revenue, with a dominant position in the US smartphone market.

  • What accusations are made against Apple in the smartphone market?

    Apple is accused of maintaining monopoly power through anti-competitive conduct, resulting in higher prices and limited choices for consumers.

  • How does Apple impact developers in the smartphone market?

    Apple imposes restrictions and fees on developers, limiting features for iPhone users and hindering competition in the market.

  • What commission does Apple collect on app downloads?

    Apple collects a 30% commission on app downloads and in-app purchases, suppressing competition in the market.

  • How does Apple hinder cross-platform messaging?

    Apple intentionally degrades the experience for iPhone users communicating with non-Apple product users by hindering cross-platform messaging.

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Summary

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Apple's iPhone Monopoly: Impact on Consumers

  • Apple's iPhone has been a significant revenue source for the company, with sales making up a majority of its annual revenue. Apple holds a dominant position in the US smartphone market, with over 70% share in the performance smartphone market and over 65% in the overall market.
  • Apple is accused of maintaining monopoly power in the smartphone market through anti-competitive conduct, resulting in higher prices, limited choices, and lower quality for consumers. Developers are also impacted by Apple's rules that insulate the company from competition.
  • Apple enforces exclusionary practices by imposing contractual restrictions and fees on developers, limiting features and functionality for iPhone users. The company also restricts access to connection points between third-party apps and the iPhone's operating system.
  • Apple collects a 30% commission on app downloads and in-app purchases, suppressing the emergence of competing programs like cloud streaming apps and super apps. The company also hinders cross-platform messaging, intentionally degrading the experience for iPhone users communicating with non-Apple product users.
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