The United States Department of Justice filed a landmark lawsuit against Apple, accusing it of supporting an illegal monopoly in the smartphone sector. The legal action, which was supported by 16 state and district attorneys, seeks to impose significant changes in the technology company’s policies that limit the functionality of the iPhone and promote consumer dependence on its products and services.
According to this accusation, the company led by Tim Cook would be unjustifiably increasing prices for developers and consumers, while restricting competition through exclusive practices and retention of critical access to your phone.
For the Department of Justice, these actions not only harm the economy of small businesses and content creators, but also impede the evolution and diversity of products in the technology market, as is the case with the degradation of functions among the mobile phone developed by the bitten apple and devices from other brands, especially Android.
The lawsuit, filed in the District Court of New Jersey, alleges that Apple has illegally monopolized the smartphone market in violation of Section 2 of the Sherman Antitrust Act. And among the practices pointed out by the American justice system include:
Block cloud streaming apps for things like video games Suppress the quality of messaging between the iPhone and competing platforms like Android Limit the interoperability of third-party smartwatches with your iPhones and make it difficult for Apple Watch users to switch due to streaming issues compatibility.Prevent third-party developers from creating competing digital wallets with tap-to-pay functionality for iPhone.Discontinue “super apps” that span many different programs and could degrade “iOS reliability” by making it easier for iPhone users to switch to competitive devices.
According to the authorities of the North American nation, this strategy by Apple not only illegally reinforced its monopoly in the market for smartphones and related accessories, but also limited the freedom of choice and the options available to the end consumer.
Deputy Attorney General Lisa Monaco said during a press conference that the technology giant “went from revolutionizing the smartphone market to slowing its progress.”
The objective of this lawsuit is to restore an environment of fair competition in the sector, where developers can offer their products without fear of being limited by monopolistic practices. In fact, the Department of Justice aims not only to protect the interests of consumers, but also to encourage innovation and diversity in the area of mobile technology.
The bitten apple, for its part, responded to the accusations by stating that “the lawsuit threatens who we are and the principles that distinguish Apple products in fiercely competitive markets,” in addition to ensuring that, if successful, “it would hinder our ability to to create the type of technology that people expect from” this company.
Apple is one of the largest companies in the world and its $2.66 trillion market capitalization is largely due to the success of the iPhone, which was first introduced in 2007. However, it has been singled out for imposing hefty fees on app developers through its internal payment system, which has sparked widespread debate about anti-competitive practices.
In a landmark case, Epic Games filed a lawsuit against Apple in 2020, accusing it of taking advantage of its dominant market position to limit competition and demand a 30% commission on in-app payments.
The latest lawsuit represents the DOJ’s third attempt to take legal action against Apple since 2010, marking a pivotal moment in the federal government’s antitrust efforts against large tech conglomerates.
Furthermore, the decision comes after a series of efforts by the Federal Government and the Biden Administration to regulate anti-competitive behaviors prevalent in the technology sector. Recent actions include a lawsuit against Google for alleged abuse of its monopoly in advertising technology.
While the Federal Trade Commission investigates agreements for the development of artificial intelligence between Microsoft, OpenAI, and Alphabet.