Tile Criticizes Apple AirTag as Anti-Competitive

Tile Prepares to Address Congress Regarding Apple's AirTag

Following the official introduction of Apple’s AirTag, a device designed for locating lost items, Tile is preparing to present its concerns to Congress. The company will formally request a thorough examination of Apple’s business practices, particularly concerning its entry into the item tracking market, during a hearing scheduled for tomorrow.

Tile's Position in the Market

Tile has been vocal in its criticism of Apple since learning of the impending launch of AirTag. The company had established a significant presence with its Bluetooth-enabled tracking devices, which consumers attach to valuables like purses, luggage, and keys.

Tile pioneered the concept of a “finding network,” utilizing the collective user base of its mobile application to assist in locating lost items even when they are beyond the Bluetooth range of their owner.

AirTag and the Competitive Landscape

AirTag replicates many of Tile’s core functionalities, while also incorporating ultra-wideband technology for enhanced precision. Furthermore, Apple integrates AirTag directly into its native “Find My” application and leverages the extensive install base of iPhones to broaden the search capabilities for misplaced items.

This development poses a substantial challenge to Tile, potentially impacting its market share and revenue streams. Tile anticipates competition not only from AirTag itself but also from Apple’s App Store policies, which require a portion of subscription revenues from in-app purchases to be shared with Apple.

Apple's Response and Tile's Concerns

Prior to the AirTag launch, Apple opened access to its “Find My” app to third-party developers. A partnership with Chipolo ONE Spot was established to demonstrate Apple’s commitment to providing a level playing field for competing item finders.

However, Tile maintains that it prefers maintaining a direct relationship with its customers through its own iOS app, rather than relying on Apple’s “Find My” user base. The company argues that Apple’s entry into the market, coupled with its inherent advantages in terms of ecosystem and first-party integration, will inevitably lead to market dominance.

Previous Testimony and Broader Concerns

Tile previously testified before Congress in 2020 regarding Apple’s alleged anti-competitive practices. It will revisit these concerns on Wednesday, alongside other companies critical of Apple, including Match and Spotify.

These companies are collectively challenging Apple’s in-app commission fees, often referred to as the “Apple tax,” which were recently reduced for smaller businesses. Larger companies seek to bypass these fees entirely, preferring to process payments directly to retain full revenue control.

A key concern is the desire for a more direct customer relationship, avoiding Apple’s role as an intermediary. In cases like Tile and Spotify, the companies argue it is unfair to pay Apple while simultaneously competing with its own first-party applications.

Ultra-Wideband Technology and Access

Tile had planned to introduce its own ultra-wideband-powered device. However, access to Apple’s U1 chip, essential for functionality, remains unavailable. Apple has indicated that a draft specification for chipset manufacturers will be released later this Spring.

Tile CEO's Statement

Following Apple’s product event, Tile CEO CJ Prober reiterated his criticism, stating that Apple has entered a market that Tile originally created.

Apple's Counterargument

Apple contends that its “Find My” network predates Tile’s founding and that Tile has the option to utilize the network if desired. The company also highlights Tile’s current 90% market share, suggesting that Apple has significant ground to cover to achieve comparable success.

Apple’s official statement emphasizes this point.