The US Department of Justice has lodged allegations against Apple, asserting that the tech giant is engaging in unlawful monopolistic practices within the smartphone market. The lawsuit aims to dismantle various methods employed by Apple to restrict access to iPhones.
Accompanied by 16 state and district attorneys general, the DOJ claims that Apple’s actions inflate prices for consumers and developers, prioritizing the perpetuation of iPhone dependency. Specifically, Apple is accused of imposing selective contractual limitations on developers and withholding crucial access points to prevent competition. According to the complaint, Apple leverages its monopoly power to extract greater profits from consumers and various industry stakeholders.
The government highlights multiple strategies through which Apple purportedly sustains its monopoly, including impeding the development of comprehensive “super apps” that could diminish iPhone loyalty, blocking cloud-streaming applications that could reduce reliance on expensive hardware, and hindering interoperability with competing platforms like Android. Additionally, Apple is accused of constraining the capabilities of third-party smartwatches and impeding the emergence of competing digital wallets.
The DOJ characterizes Apple’s response to competitive threats as a pattern of implementing restrictive contractual measures, likening it to a game of “Whac-A-Mole.” DOJ Antitrust Division Chief Jonathan Kanter asserts that Apple’s actions have resulted in increased costs for consumers and stifled innovation within the technology sector.
The lawsuit, filed in the US District Court for the District of New Jersey, is supported by attorneys general from various states and territories. The plaintiffs seek to curtail Apple’s ability to exploit its control over app distribution channels, prevent the use of proprietary APIs to undermine cross-platform technologies, and prohibit the imposition of anti-competitive terms and conditions on developers and consumers.
During a press conference, DOJ Deputy Attorney General Lisa Monaco criticized Apple for exerting a “chokehold on competition” and impeding technological advancement. US Attorney General Merrick Garland acknowledged the challenge posed by Apple’s substantial resources but emphasized the government’s responsibility to protect consumers from economic harm.
In response, Apple denounced the lawsuit, asserting that it undermines the principles of innovation and competition that distinguish its products. The company plans to contest the allegations vigorously and argues against the jurisdictional scope defined by the DOJ.
This legal action against Apple follows a broader trend of antitrust scrutiny faced by large technology firms, with the DOJ previously targeting Google. It reflects growing concerns over market dominance and the need to safeguard competition and innovation within the tech industry.
Source: