Former Windows head Steven Sinofsky drew on his experience during Microsoft Corp.'s MSFT antitrust trial in the 90s and called the U.S. Department of Justice's lawsuit against Apple Inc. AAPL "so weird."
What Happened: Sinofsky emphasized the importance of market definition in U.S. antitrust cases, which he believes is unlike the European Union’s approach.
He highlighted various aspects of market definition, including the significance of market share, the concept of duopoly and more to understand what an "antitrust" trial means.
He also drew parallels with the U.S. v. Microsoft case, noting the unique nature of Apple’s case and the potential implications for developers.
"The Microsoft case was primarily about the business terms as well with selling Windows to OEMs. That's what makes this case so weird."
See Also: Tim Cook’s ‘Buy Your Mom An iPhone’ Comes Back To Bite Apple In DOJ’s Antitrust Lawsuit
"In this new Apple case much of the argument is about potential harm to developers but other than the Apple Dev fee they pay nothing to Apple."
Sinofsky further argues that unlike Microsoft, which held a 90% share in the computing industry, Apple's smartphone market share in the U.S. is currently around 60%.
He called the DOJ's argument around market share "incoherent."
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: Sinofsky’s comments come amid the ongoing U.S. Department of Justice (DOJ) antitrust lawsuit against Apple.
The lawsuit, filed on Thursday, has been described by Apple as “dangerous” and a threat to the company’s core principles and innovation capabilities. The lawsuit targets Apple’s alleged smartphone monopoly and its impact on users and developers.
The DOJ also blamed Apple for the lack of success of major companies like Amazon.com, Inc. AMZN, Microsoft, and HTC Corp. in the smartphone market. The lawsuit cited Apple’s strict control over its ecosystem as a barrier to competition.
Despite this, "Mad Money" host Jim Cramer remains bullish on Apple’s stock, stating that the legal action does not diminish the company’s investment appeal.
He compared the situation to previous instances where analysts downgraded Apple’s stock from buy to hold, creating further buying opportunities.
Price Action: On Friday, Apple’s shares were down 0.18% in premarket trading after closing at $171.37 on Thursday, according to Benzinga Pro.
Check out more of Benzinga's Consumer Tech coverage by following this link.
Read Next: Elon Musk Reacts To Jeff Bezos Saying ‘There’s No Way You Could Have Tesla And SpaceX Without’ Him
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photos: courtesy Apple and Microsoft
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
