U.S. lawsuit says Apple CarPlay is also anti-competitive

Buried in the 88-page antitrust lawsuit filed against Apple by the U.S. Department of Justice is a reference to everyone’s favorite phone projection system, CarPlay.

The U.S. Department of Justice said that, like smartphones, vehicle infotainment systems have become a new way for Apple to exhibit anti-competitive behavior to the detriment of consumers and its competitors.

Prosecutors said Apple’s plan to launch a more immersive version of CarPlay, a system that displays key aspects of vehicle functions such as speed and HVAC, is further evidence of the company’s illegal monopoly on smartphones.

“By applying the same restrictive strategy to CarPlay, Apple further locks in iPhone functionality by preventing the development of other disintermediary technologies that interoperate with the phone but reside outside the device,” the lawsuit states.

CarPlay and the digital key feature offered through Apple’s Wallet feature surprised some analysts, who said the Justice Department may have misunderstood the usefulness and capabilities of the phone mirroring system.

That’s especially true for the next-gen version, which prosecutors insidiously describe as “taking over all the screens, sensors and gauges in the car, forcing users to experience an iPhone-centric driving experience if they want to use any of the features CarPlay has to offer.” Function. “

That’s misleading, said Sam Abuelsamid, principal analyst at Guidehouse Insights and an expert on vehicle software. “Even with next-generation systems, OEMs [original equipment manufacturers] Apple doesn’t actually have to take over all screens,” he said in an email. “They can restrict the interface to any screen they want.”

Abusamid said automakers still need to build a basic software interface so owners can adjust the air conditioner, change radio stations or operate local navigation maps. They can’t assume every car owner has a smartphone, let alone an iPhone, and project it onto the car’s infotainment screen. Cars need to be able to operate without smartphones.

Additionally, customers won’t have to pay anything to switch to Android Auto (another popular phone mirroring service owned by Google). Even in vehicles that are natively equipped with Google Android software, owners can use CarPlay as needed.

Apple CarPlay is so popular that Americans consider it a must-have feature for future car purchases. Only General Motors decided to cut off all phone mirroring services from its electric vehicles, citing a desire for a more “fully integrated” software experience. (The move proved extremely unpopular with car buyers.)

GM may also have cut off access to CarPlay for reasons other than overall integration. The company may be reluctant to share data with Apple, which has been working on its own secret car program for more than a decade. Abusamid said the unceremonious end of the effort, known as Project Titan, last month could ultimately cause GM to reconsider its decision.

Digital Key also made a cameo appearance in the Justice Department lawsuit. The DOJ said the keys, which use the phone’s near-field communication (NFC) or ultra-wideband (UWB) technology to lock, unlock or start the car, are another cross-platform technology used by Apple to solidify its dominance of the smartphone market. . explain. Prosecutors cited Apple as an example, requiring developers to add digital keys developed for their own apps to Apple Wallets in order for them to function properly.

“The default state of Apple Wallet directs users to use Apple Wallet, rather than allowing third parties to only provide digital car keys within their own cross-platform applications, which increases users’ concerns about Apple and iPhone when using their cars,” the complaint reads. dependence.” “At the same time, it reduces the incentive for automakers to innovate because automakers are forced to share data with Apple and cannot differentiate themselves because they may be absent from Apple’s actions.”

Abu Samid noted that Apple’s digital key technology complies with standards set by a cross-industry alliance of automakers and technology companies. Still, the company has been keeping a “tight hand” on using its NFC and UWB chips, and its requirement to operate through Apple Wallet may have a greater impact on other payment apps than those developed by the automotive industry.

Mike Ramsey, vice president at Gartner, said that if Apple makes digital keys work, it could be a win for consumers despite breaking the law.

“The tension here is that Apple’s raison d’être is a low-friction, easy-to-use experience, forcing apps to be integrated into its secure Apple Wallet system to ensure a better consumer experience,” Ramsey said. Of course, this also helps Apple control digital key applications in a way that seems anti-competitive.”