The US Department of Justice accuses Apple of having an illegal monopoly in the smartphone market. They filed an antitrust lawsuit aiming to change how Apple controls iPhones.
The DOJ, along with 16 state and district attorneys general, claims that Apple raises prices for consumers and developers. They argue that Apple’s actions make users depend more on its phones by imposing restrictions on developers and limiting access to the phone to prevent competition.
“Apple uses its monopoly power to get more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants,” stated the DOJ.
The government accuses Apple of maintaining its monopoly illegally by preventing “super apps,” blocking cloud-streaming apps, lowering the quality of messaging between iPhones and competing platforms, restricting third-party smartwatches with iPhones, and prohibiting competing digital wallets for the iPhone.
DOJ Antitrust Division Chief Jonathan Kanter said Apple reacted to competition by implementing rules and restrictions that enable them to charge higher prices and hinder competition.
The case is filed in the US District Court for the District of New Jersey. Attorneys general from several states and the District of Columbia are part of the complaint along with the DOJ. They want the court to prevent Apple from using its control of app distribution to undermine cross-platform technologies and stop it from using contract terms to maintain a monopoly.
They also request the court for any other necessary measures to restore competition. DOJ officials did not discuss whether they would seek to break up Apple if they win in the liability stage.
DOJ Deputy Attorney General Lisa Monaco stated that Apple has maintained a tight grip on competition. Kanter emphasized that the case aims to safeguard competition and innovation for future technology. US Attorney General Merrick Garland acknowledged the government’s challenge in facing a trillion-dollar company.
In a statement, Apple expressed concern about the lawsuit, stating it threatens Apple’s identity and the unique qualities of its products. The company plans to challenge the case vigorously and disagrees with the DOJ’s definition of the relevant market.
iOS app developers have criticized Apple’s closed marketplace and unclear policies. Europe has taken the lead in regulating the tech industry, implementing new rules through the Digital Markets Act. The DOJ will be busy with tech monopoly cases in the coming years, including cases against Google.
Editor’s Review
It looks like Apple is in for a tough legal battle as the US government accuses them of unfair monopoly practices. The Department of Justice claims Apple is overcharging consumers and stifling competition. If the case goes forward, it could mean big changes for how Apple operates. But Apple isn’t backing down, vowing to defend itself vigorously. It’s a showdown between a tech giant and the government, with the outcome uncertain.
