The U.S. Justice Department Files Lawsuit Against Apple
The 88-page lawsuit accuses the tech giant of maintaining a monopoly over the smartphone market.
Words by FP Team
VJERAN PAVIC | THE VERGE
Apple and The U.S. Department of Justice (DOJ) are now in a legal battle. The DOJ filed an antitrust lawsuit against the company, alleging that Apple operates its iPhone business like a monopoly.
The DOJ argues that Apple has caused a lack of growth in areas within the tech sector, ultimately harming competitors, developers, and consumers. The lawsuit alleged that the company limits third-party wallet and smartwatch compatibility, engages in anticompetitive measures, and the controversial decisions to discourage non-App Store programs – in addition to the fact that these anticompetitive practices are exclusionary due to contractural restrictions and fees that limit the functions and features on the iPhone and its operating system.
In the 88-page lawsuit, the government stated, “Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly. The cumulative effect of this course of conduct has been to maintain and entrench Apple’s smartphone monopoly at the expense of the users, developers, and other third parties who helped make the iPhone what it is today.” U.S. Attorney General Merrick Garland said in a statement, “Consumers should not have to pay higher prices because companies violate the antitrust laws. We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
Apple refutes the claims with this statement, “At Apple, we innovate every day to make technology people love — designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users. This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”
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April 30, 2024ADVERTISEMENT