Battle of the chat bubbles: Why is Apple is being sued? And what's up with interoperability?

Hi, Friends —

✰ Welcome to [our digital disco]! Today we’re diving into Apple’s tight-knit ecosystem, and how this threatens the security of your text messages.

You can also check out last week’s newsletter here.

The US Department of Justice (DOJ) took legal action against Apple late last week, accusing the tech giant of creating an illegally locking users in its ecosystem.

This move has reignited discussions about Apple's dominance and the impact on us as consumers. Even more, we’re left to wonder whether Apple’s decision to close iMessage — the reason iPhone users battle with non-iPhone users over green bubbles — is actually hurting buyers. Turns out, Apple only provides customers end-to-end encryption, the most secure* messaging tech, when they message fellow iPhone users. When iMessages turn from blue to green, it’s because Apple refuses to support the same level of security.

Today we’re exploring the implications of the DOJ’s suit, the role of “interoperability,” and how this compares to Europe’s suit against iMessage’s competitors. The outcomes of these cases impact the security of your text messages, and the possibility of you switching apps. 

Let’s dive in.

☞ The case against Apple

Central to the DOJ’s antitrust case is Apple's strategy of blocking iMessage from interacting with other messaging platforms, such as WhatsApp or Google Messages. Apple wants its users to continue to use Apple products, and to also persuade their parents, children, and friends to do the same. For this reason, tools such as iMessage work best only among iPhone users — rather than across all smart phones. In essence, Apple refuses to make valuable features, such as end-to-end encryption, interoperable —  ie., able to collaborate with other software.

Case in point: Beeper Mini. The app solved the blue bubble/green bubble war between iPhone and Android users, enabling safer communications between messaging platforms. Apple promptly blocked Beeper Mini on its app store. “By rejecting solutions that would allow for cross-platform encryption,” the DOJ said, “Apple continues to make iPhone users less secure than they could otherwise be.”

The DOJ's scrutiny highlights broader concerns about tech monopolies and the need for regulatory oversight to ensure fair practices in the digital landscape.

☞ Why the push for interoperability?

Remember when Instagram Threads came out? Well, imagine if anything you posted on Threads could be seen on your friend’s X (Twitter) feed — and your friend’s tweets, seen on your Threads feed. That would exhibit “interoperable” platforms… and is an incredibly unlikely outcome, because both Instagram and X want to keep their users within their own ecosystems, rather than share users with competitors. (See this post about how X’s competitors are attempting to create just this solution.)

Interoperability would threaten Apple because it’d open the door wide to competitors. Most popular social and messaging platforms have risen to success because they created a massive network effect (their value increased as more users join) and in consequence, a protective "moat" against competitors. If a regulator like the DOJ forces interoperability, the company becomes less exclusive, weakening this moat and making it easier for competitors to challenge its dominance.

Now, here is where it gets interesting: Apple isn’t the only one to be accused of being anti-competitive. Meta, iMessage’s main global competitor, was actually forced to open its doors by the European Union.

Last month, the E.U., under the Digital Markets Act (DMA), compelled Meta to allow messages from other platforms into WhatsApp and Facebook Messenger — marking a significant shift for its 2 billion+ users. This move was motivated by the E.U.'s push for “gatekeeper companies” to foster competition by opening their platforms. Interoperability showcases a paradigm shift toward more open, interconnected communication platforms. The shift not only benefits users by offering greater choice and flexibility, but also encourages technological innovation.

So, why did the E.U. force Meta have make its services interoperable, but not Apple? For one, Apple iPhones — and in consequence, iMessage — is less prevalent in Europe and worldwide. The DMA focuses on companies with substantial market power. Globally, WhatsApp, in hand with WeChat, Facebook Messenger, and Telegram, are by far the most popular messaging apps. iMessage doesn’t even make it into the top 15.

"Most Popular Messaging Apps in the World." Sinch Engage, 26 March 2024, https://engage.sinch.com/blog/most-popular-messaging-apps-in-the-world/#messaging-apps-and-usage-statistics-in-the-americas.

Even in the U.S., the most popular messaging app is Facebook — with Apple coming in third place after Meta (Instagram & Facebook Messenger) and TikTok.

Perhaps the DOJ is trying to do just what the E.U. did with WhatsApp and Facebook Messenger: force them to open up to competitors. Meanwhile, Apple’s refusal to do so highlights concerns about how exclusivity and lack of interoperability may stifle market dynamics and impact consumer options. As the legal proceedings unfold, the focus remains on creating a level playing field in the digital ecosystem.

☞ Apple’s U.S. stronghold

Apple's stronghold is built on brand loyalty and the widespread popularity of its devices, particularly the iPhone. As the iPhone’s default service, iMessage adds another layer of exclusivity to Apple's suite.

In effect, Apple has masterfully executed ecosystem lock-in, a strategic tactic used by companies to both create deep customer dependence among their products, and make it challenging to switch to competitors. The strategy is evident in how Apple’s devices (e.g., iPhones, iPads, MacBooks, Apple Watches) work seamlessly together, allowing users to access content across multiple devices. The integration of services like iMessage and FaceTime reinforces this lock-in, creating an interconnected experience for users. Clearly, this strategy also deters users from exploring alternatives — reinforcing Apple's dominance in the market.

Unlike gatekeeper platforms subject to E.U. regulation, Apple's strategy in the U.S. revolves around preserving its ecosystem's exclusivity and security rather than being compelled to open up to interoperability with other platforms. Yet this decision also sacrifices user safety — leaving iPhone users vulnerable to potential privacy breaches and cyber threats if they message non-iPhone users with iMessage. In other words, iMessage opens up possibilities for hackers to intercept or change the messages, as part of its tactic to persuade purchasing iPhones over competitor products.

☞ Why you should keep an eye on the DOJ’s suit against Apple

Apple's decision to maintain non-interoperability presents a serious security risk for users. In contrast, WhatsApp's commitment to interoperability provides a safer and more inclusive messaging environment. By allowing messages from diverse platforms and implementing end-to-end encryption universally, WhatsApp presents a compelling alternative for users prioritizing security and privacy in their digital interactions.

The antitrust lawsuit against Apple is poised to be a marathon rather than a sprint, with legal experts predicting a timeline spanning five to ten years. Drawing parallels to the historic Microsoft case, this legal saga unfolds against a backdrop of rapidly evolving digital landscapes and critical questions about regulatory oversight in the tech industry. It also prompts a broader examination of the implications of interoperability and platform exclusivity.

Why does this matter? Well, this legal battle could redefine the boundaries of antitrust regulations in an era where tech giants wield substantial influence over digital ecosystems. The outcomes will likely shape the future landscape of messaging platforms, potentially leading to a more open, secure, and innovative environment that prioritizes user safety and privacy.

(And in other Apple-and-encryption-related news: last Thursday, news broke that a flaw in Apple's mac chips could expose secret encryption keys — which could potentially cause unauthorized access and data breaches on your device.)

✿ As always — any and all feedback is welcome! In the meantime, give someone a hug and say an ‘I love you’ this week. Make the world a little happier.