The United States Justice Department has initiated a lawsuit against Apple, accusing the tech giant of monopolizing the smartphone market. The Department alleges that Apple's exclusionary conduct impedes Americans from switching to other smartphone brands.
According to the complaint, Apple allegedly withholds crucial access points from developers, undermines apps and products, making users heavily reliant on the iPhone. This dependency directly escalates the product's price. The Justice Department was supported by 16 state attorney generals in filing this civil antitrust lawsuit against Apple. They argue that Apple's actions breach Section 2 of the Sherman Act. A press release by the Department of Justice indicates that they are seeking relief to aid in restoring competition within the smartphone market.
Apple's alleged anticompetitive practices have been viewed as an attempt to extract maximum revenue from consumers. By reportedly suppressing mobile cloud streaming services, consumers were restricted from using high-quality video games and cloud-based applications without purchasing expensive smartphone hardware. Furthermore, it is claimed that Apple also diminished the functionality of non-Apple Smartwatches, leading Apple Watch owners to incur substantial out-of-pocket costs if they do not continue purchasing iPhones. In 2023, Apple's net income surpassed the gross domestic products of over 100 countries, solidifying its position as one of the world's most influential companies.
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division stated: "For years, Apple responded to competitive threats by imposing a series of 'Whac-A-Mole' contractual rules and restrictions that have allowed Apple to extract higher prices from consumers, impose higher fees on developers and creators, and throttle competitive alternatives from rival technologies." He added: "Today’s lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same unlawful playbook in other vital markets."
