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Sumit Sharma, senior researcher for tech competition at Consumer Reports | Sumit Sharma, LinkedIn page

Consumers file lawsuits against Apple, alleging anticompetitive practices

Antitrust

Apple Inc. is facing multiple lawsuits from consumers across various states, coinciding with a lawsuit filed by the U.S. Department of Justice (DOJ) accusing the tech giant of monopolizing or attempting to monopolize smartphone markets.

The DOJ, in its press release, stated that it alleges in its lawsuit - joined by 16 state and district attorneys general - that Apple has unlawfully maintained a monopoly over smartphones and performance smartphones markets. This monopoly, according to the DOJ, allows Apple to extract more money from iPhone users and developers. The company reportedly maintains this monopoly by imposing contractual restrictions on developers or withholding crucial access points.

According to IPWatchdog, a class action suit was filed against Apple in the U.S. District Court for the District of New Jersey by iPhone customer Shoshi Goldfus. This occurred a day after the DOJ announced its complaint. Goldfus claims that Apple exploited consumers' affection for their devices. Her lawsuit also echoes allegations made in the DOJ's complaint; she asserts that Apple preserves its monopoly by suppressing super apps compatible with different platforms and cloud-streaming games; degrading non-Apple messages on messaging apps; ensuring Apple smartwatches are only interoperable with Apple phones; and denying cross-platform access to digital wallets.

IPWatchdog reports two additional lawsuits filed in California. One such suit, filed on behalf of Jared Schermer, accuses Apple of suppressing competition through contractual restrictions and "delaying, degrading, or outright blocking technologies that would increase competition in the smartphone markets by decreasing barriers to switching to another smartphone."

Following the announcement of the DOJ's legal action, Consumer Reports issued a press release where Sumit Sharma, a senior researcher for tech competition at Consumer Reports said: "Apple has been an outlier in its willingness to make changes to products and services to benefit consumers and developers." Sharma further noted that they have observed Apple limiting access to hardware and software for competing services and products like smartwatches and contactless payments, which he believes has negatively impacted innovation and competition.

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