The U.S. Department of Justice (DOJ) along with 16 state and district attorneys general have lodged a civil antitrust lawsuit against technology giant, Apple. The suit alleges that Apple has monopolized or attempted to monopolize smartphone markets, thereby infringing Section 2 of the Sherman Act.
A press release from the U.S. Department of Justice states that the lawsuit accuses Apple of unlawfully maintaining monopoly power over the smartphones and performance smartphones markets. This alleged dominance is used to extract more money from iPhone users and developers. The company reportedly sustains its power by imposing contractual restrictions on developers or denying them crucial access points. The DOJ asserts that such anticompetitive behavior undermines apps, products, and services that could lessen dependency on iPhones and reduce costs for consumers and developers.
The press release further explains that Apple’s purported anticompetitive conduct took various forms. These include blocking innovative super apps, suppressing mobile cloud streaming services, excluding cross-platform messaging apps, diminishing the functionality of non-Apple smartwatches, and limiting third-party digital wallets.
The lawsuit was filed in the U.S. District Court for the District of New Jersey. Through this legal action, the DOJ and the state and district attorneys general aim to restore competition to these markets. "Consumers should not have to pay higher prices because companies violate the antitrust laws," Attorney General Merrick B. Garland stated in the press release. "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."
Acting Associate Attorney General Benjamin C. Mizer also commented on this issue in the press release: "When corporations engage in anticompetitive conduct, the American people and our economy suffer," he said. "Today’s action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation—that the Justice Department is committed to using every tool available to advance economic justice and root out anticompetitive practices, wherever they arise."
