Apple’s ‘AirTags’ launch adds to antitrust scrutiny

Apple on Tuesday unveiled a new tracking product that is drawing renewed antitrust concerns.

Apple’s Tuesday launch event comes one day before a company executive is set to appear before a Senate panel – along with a representative from the company accusing Apple of stifling competition.

The Silicon Valley giant on Tuesday unveiled its new AirTags locators that will help users find lost items. The AirTags will be available for order on Friday, with one retailing for $29 and a pack of four retailing for $99. 

The Coalition for App Fairness, which brings together a group of apps of varying business sizes, slammed the announcement of Apple’s AirTags drawing similarities with the company Tile.

“Apple AirTags are the latest example of technology ripped off from a competitor after years of harmful and monopolistic tactics,” Meghan DiMuzio, executive director of the coalition, said in a statement. “Tile pioneered this category to solve a universal consumer problem, but Apple used its monopoly power to tip the scales in its own favor – depriving customers of choice and innovation.” 

Tile is a bluetooth tracker that allows companies to integrate Tile services into their own products. 

Tile is one of the member groups associated with the Coalition for App Fairness. 

Last year, Tile’s general counsel Kirsten Daru testified before the House antitrust subcommittee about Apple’s alleged anti-competitive behavior, including accusing the company of making changes to its operating system that made it more difficult for users to use Tile’s products than Apple’s own. 

Daru is also scheduled to testify at Wednesday’s Senate antitrust subcommittee hearing on competition in app stores. 

“We look forward to tomorrow’s Senate hearing when Apple will have to answer for its practices and developers and consumers will have an opportunity to share their stories,” DiMuzio said.

In response to the accusations, Apple defended its launch of AirTag, highlighting Apple’s creation of “Find My” features over a decade ago. 

“We have always embraced competition as the best way to drive great experiences for our customers, and we have worked hard to build a platform in iOS that enables third-party developers to thrive,” the company said in a statement. 

The company’s chief compliance officer, Kyle Andeer, is also slated to testify at Wednesday’s hearing. 

In addition to AirTags, Apple unveiled a line of slim iMac computers and an updated iPad at the Tuesday launch event. 

During the launch event, Apple also said it will launch new subscription-based Apple podcast services that will allow users to gain ad-free listening and early access.

The company did not roll out its much anticipated App Tracking Transparency feature, which will limit companies from tracking users across different apps, on Tuesday. 

The company has delayed the release of the anti-tracking feature, which was first unveiled over the summer and slated to be launched in September. It was delayed after Apple said it would give developers time to update their systems and data practices. 

In January Apple said it would roll out the feature in “early spring.” 

The feature has faced pushback from Facebook, which has argued in ad campaigns that the update will hurt small businesses. 

A spokesperson for Apple did not respond to a request for comment on the timing of the launch. 

CNBC reported that Apple will roll out the feature with its updated iOS 14.5 operating system “next week.”

Updated at 5:45 p.m.