You knew this would happen after Apple was forced to give the truth over the governing of older phones. Government in this capacity is referring to the speed restriction of the older products. It came under the auspices of preserving battery life. However, this was found to be immensely false by a young tech enthusiast. It also brought out the dirty practices of how Apple, among most in the industry, always pushes for their customers to upgrade with every new product placement.
With this in mind, this report from Bloomberg gives us a byline that everyone should see:
The U.S. Department of Justice and the Securities and Exchange Commission are investigating whether Apple Inc. violated securities laws concerning its disclosures about a software update that slowed older iPhone models, according to people familiar with the matter.
Normally, this would be handled solely by the SEC. The reasoning would be that it’s a big business matter that doesn’t need normal government intervention. It would normally be a matter that would take the various accountants and economists at the agency some time to sort through. Adding the Department of Justice means one of two things, though. The US is looking to see if Apple is using artificial conditions to push sales, or Apple is possibly involved in unfair business practices that may be in violation of federal law.
Tim Cook has admitted many times that he should have made any statement more transparent in their dealings with the public. With this investigation, Apple has seen a slight drop in their stock over the past few days. And this isn’t the first time that Apple has drawn the ire of the DOJ. They were involved in a anti-poaching investigation in 2010, along with Google. They were investigated for anti-trust violations over iBooks in 2012. They were also sued by the DOJ, in a dropped suit, over refusing to cooperate with federal investigators in the San Bernardino shooting around 2016.
The bad part is that Apple is still taking the moral high ground in this case. They believe they’re throttling phones for your own good. And the recent 11.3 OS release does have the option to eliminate the throttling. However, Apple advises everyone to not turn off the throttling. This may sound like spooky language. (And it is.) Yet, Apple will get away with it. They always do.
Perhaps it’s time for the American public to throttle their money given to Apple, Inc. They certainly have with the recent iPhone X initial launch failure. Which I will admit that I have an iPhone 6, and I don’t plan on buying any other products until this one is at failure status. Apple tries to appeal to people to go into near debt to buy their phones. Most fall for the tactics, quite well.
The end statement: Who knows what else the government will find out about Apple? It may not be pretty…