Antitrust Allegations: US Accuses Apple of Smartphone Market Monopoly
The United States has filed a groundbreaking lawsuit against Apple, alleging the tech giant of monopolizing the smartphone market and stifling competition.
In the lawsuit, the Justice Department contends that Apple utilized its control over the iPhone to unlawfully restrict competitors and consumer choices. It accuses the company of hindering the growth of new apps and diminishing the attractiveness of rival products. Apple, however, has pledged to vigorously contest the lawsuit and refutes the allegations.
Filed in a federal court in New Jersey, the lawsuit alleges that Apple employed “a series of shapeshifting rules” to impede innovation and stifle competitors. Attorney General Merrick Garland asserted that the company undermines alternative apps, products, and services, thereby hindering user independence from the iPhone ecosystem and inflating costs for consumers and developers.
The complaint outlines several “anti-competitive” measures purportedly taken by Apple, including blocking apps with extensive functionality, curbing mobile cloud streaming services, restricting third-party digital wallets, and diminishing the capabilities of non-Apple smartwatches.
During a news conference on Thursday, Mr. Garland accused Apple of maintaining its monopoly not solely through outperforming competitors, but also by violating federal antitrust laws. He highlighted the limitations experienced by iPhone users when communicating with non-Apple smartphones, citing restricted functionality and quality issues.
Fred Sainz, a spokesman for Apple, rebuffed the lawsuit, asserting that it was erroneous in both facts and law. Sainz emphasized Apple’s commitment to vigorously defend against the allegations, expressing concerns that a successful lawsuit would impede the company’s ability to innovate.
This legal action marks the third time Apple has been sued by the Justice Department since 2009 and represents the first antitrust challenge against the company under President Joe Biden’s administration. Apple has been facing increasing legal scrutiny over its iOS ecosystem and business practices, including a recent €1.8 billion fine imposed by the European Union for violating competition laws related to music streaming.
The European Commission found that Apple had prevented streaming services from informing users of payment options outside the Apple app store, leading to an abuse of its dominant market position. Apple plans to appeal the decision. According to the Justice Department, Apple commands over 70% of the US smartphone market and more than 65% of the broader smartphone market.
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