US Government Sues Apple Over Alleged Monopolistic Practices in Smartphone Market
WASHINGTON — In a groundbreaking move, the US Justice Department has filed a lawsuit against Apple, accusing the tech giant of monopolizing the smartphone market and stifling competition.
The lawsuit alleges that Apple used its control over the iPhone to unlawfully restrict competitors and limit consumer choices.
According to the complaint, Apple’s actions have hindered the growth of new apps and diminished the appeal of rival products.
Apple has strongly denied the allegations and has pledged to vigorously fight the lawsuit.
Filed in a federal court in New Jersey, the lawsuit claims that Apple employed “shapeshifting rules” to impede innovation and suppress competitors.
Attorney General Merrick Garland stated that Apple’s actions have hindered the development of apps, products, and services that could have provided users with alternatives to the iPhone, ultimately leading to higher costs for consumers and developers.
The complaint outlines several “anti-competitive” measures taken by Apple, including blocking apps with broad functionality, restricting mobile cloud streaming services, limiting third-party digital wallets, and reducing the functionality of non-Apple smartwatches.
During a news conference, Garland accused Apple of maintaining its monopoly through violations of federal antitrust laws, rather than simply outperforming competitors on merit.
He highlighted the limitations faced by iPhone users when messaging non-Apple smartphones, such as non-encrypted communications and pixelated images, as evidence of Apple’s restrictive practices.
Apple spokesperson Fred Sainz refuted the lawsuit, stating that it is based on inaccurate facts and laws, and that Apple will vigorously defend itself against the allegations.
This marks the third time Apple has been sued by the Justice Department since 2009 and is the first antitrust challenge against the company under President Joe Biden’s administration.
Business law professor Anat Alon-Beck criticized Apple for systematically excluding rivals from its ecosystem, which she believes harms start-ups, stakeholders, customers, and shareholders.
Apple has faced increasing legal scrutiny over its iOS ecosystem and business practices, including a recent €1.8bn fine by the EU for violating competition laws in the music streaming sector.
The European Commission found that Apple had restricted streaming services from informing users of payment options outside the Apple app store, leading to an abuse of its dominant market position.
Despite these legal challenges, Apple remains a dominant player in the US smartphone market, holding over 70% market share and over 65% of the broader smartphone market. — BBC
