Apple CEO Tim Cook probably made the comment as a throwaway remark, but he might now regret it: "Buy your mom an iPhone."
That five-word phrase appears in a new antitrust lawsuit from the U.S. government and 16 attorneys general, accusing Apple of locking in users to gain a "smartphone monopoly."
Apple has denied any wrongdoing and said it will contest the suit.
In its evidence, the Justice Department pointed to an exchange between Cook and an audience member at the Code tech conference in September 2022: "Apple's CEO Tim Cook was asked whether Apple would fix iPhone-to-Android messaging," it reads.
" 'It's tough,' the questioner implored Mr. Cook, 'not to make it personal but I can't send my mom certain videos.' Mr. Cook's response? 'Buy your mom an iPhone.' "
Video of the exchange shows Cook laughing immediately after.
The Context
The civil suit is the latest by the federal government that accuses Big Tech, including Amazon, Google and Meta, of using products' popularity to stifle competition.
Microsoft, in 2001, was the last such firm found guilty of monopolization, at a time when its web browser, Internet Explorer, was automatically installed on Windows products.
In that case another executive's alleged five-word phrase was at the center of a dramatic allegation: "cut off Netscape's air supply."
Intel's then-vice president, Steven McGeady, told a court the comment was made by Microsoft's Paul Maritz in relation to Microsoft giving away Explorer for free. Maritz denied using the phrase.
What We Know
Apple's iPhone and app store are hugely popular, helping the company become the near-$2.75 trillion public company it is today. But the 88-page complaint alleges the company has abused the power that popularity has brought.
It says that Apple used its app review process to prevent the development of super apps—those such as WeChat in China that provide several services—in a bid to incentivize iPhone users not to switch.
It also says the company blocked banks from accessing its Apple Pay technology.
And it alleges that Apple created "social stigma" by distinguishing messages sent from other phones with green bubbles and limiting videos.
Views
Attorney General Merrick told reporters at a news conference on Thursday: "We allege that Apple has consolidated its monopoly power, not by making its own products better, but by making other products worse."
Apple has said it will vigorously defend against the antitrust suit.
"This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets," a company spokesperson said.
"If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people's technology."
Newsweek has asked Apple about Cook's "Buy your mom an iPhone" remark.
What's Next?
The civil case could take years to work its way through the justice system, if it makes it to court.
The Justice Department has pointed to potential remedies, including:
- Preventing Apple's using current control of its app store to "undermine cross-platform technologies"
- Preventing Apple from using private APIs to "undermine cross-platform technologies like messaging, smartwatches and digital wallets, among others."
- Preventing Apple from using terms and conditions with developers, accessory makers, consumers and others "to obtain, mantain, extend, or entrench a monopoly."
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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