Lawsuits for Anti-Competitive Practices Keep Gaining Steam: After Apple, PlayStation Users Seek €435M in Damages from Sony

Key Takeaways

• Proton sues Apple: Swiss tech firm Proton filed an antitrust lawsuit in California, accusing Apple of monopolizing iOS app distribution and violating user privacy.
• Apple under mounting pressure: A separate U.S. DOJ case also moved forward, as Apple's motion to dismiss was denied just days earlier.
• Sony faces an antitrust suit in the Netherlands:Dutch PlayStation users are suing Sony for restricting digital game sales, with potential damages ofup to 435M.
• Closed ecosystems under fire: Apple and Sony are criticized for using walled gardens to suppress competition and limit consumer choice.

Apple's walled garden' ecosystem has enabled it to integrate its hardware and software tightly, offering security and a user experience that some may argue are better than those of Android and Windows.

But at the same time, this approach has turned the company into a monopoly, giving it power over what developers can and can't do within the OS.

This is what Proton argued in its suit filed in California on Monday, July 1.

The Swiss tech company stated that Apple's monopoly gives developers no choice but to distribute their iOS apps exclusively' via its App Store.

Proton further explained in its blog post that the suit also covers Apple's violation of consumer privacy, its role as enabler of repressive governments, and the 30% fee on App Store fees, which it can get away with because there's no competition in iOS app distribution or iOS in-app payments.'

Apple's Motion to Dismiss Another iPhone Lawsuit Denied

Proton's case further adds to the growing pile of lawsuits filed against Apple.

A few days ago, the makers of iPhone's motion to dismiss a lawsuit on its smartphone market domination in the US was denied.

The case filed by the US Department of Justice states that Apple's technical restrictions on third-party apps make it difficult for users to switch to competing products.

While antitrust cases like these last years, Apple has enough resources to put up a serious fight considering its over $3T net worth.

iOS Restrictions: The Price to Pay for a Secure OS?

The security argument may stand when discussing Apple's walled garden, but not when it comes to its anti-competitive practices.

Last year, the European Union (EU) informed the company that it breached the Digital Markets Act (DMA).

In its press release, the EU said that Apple prevents app developers from freely steering consumers to alternative channels for offers and content.'

In other words, developers can't tell users to download their app elsewhere.The company, which sells the Apple Watch, also has stifling restrictions on other smart watches.

For example, Pebble founder Eric Migicovsky also noted in March how difficult it is to make the company's new smart watches work with iOS.

Due to Apple's restrictions, he said the Core 2 Duo and Core Time 2 can't perform certain functions, like sending text messages and replying to notifications.

Sony Also Under Fire

Apple isn't the only company under scrutiny over its anti-competitive practices.

Dutch PlayStation users have recently filed a class action lawsuit against Sony over its status as the only digital games distributor on its consoles, reported Euro Gamer. Because of this, only Sony can dictate the pricing of games.

With more than 80 percent of Dutch console owners using a PlayStation, the lawsuit states that Sony is free to make decisions with little regard for competitors, developers, or consumers.

Filed by Dutch non-profit organisation Stichting Massaschade & Consument, the lawsuit could result in damages worth up to 435M.

Time for the Walled Garden to Come Down?

For all its faults, Apple's walled garden and various versions of it by other companies also have pros. It gives iPhonesbetter overall battery lifethan similar Android devices, even with a smaller battery.

However, something has to be given when a closed-off ecosystem is built to the detriment of users, such as Apple's and Sony's alleged anti-competitive practices.

It may not be the complete dismantling of said wall, but it must come down a few notches.

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