Lawsuit Filed: US Alleges Apple Monopolizes Smartphone Industry

The Justice Department has initiated a significant lawsuit against Apple, accusing the tech giant of monopolizing the smartphone market by exploiting its control over the iPhone's app store to "lock in" both customers and developers. The lawsuit, joined by the attorneys general of 16 states and filed in a federal court in New Jersey, represents one of the most substantial legal challenges Apple has faced, amid growing scrutiny over its business practices.

 

According to the Justice Department, Apple has engaged in illegal actions to suppress competition and dissuade the use of rival products by employing "shapeshifting rules" and limiting access to its technology, thereby inflating its profits at the expense of consumer choice and innovation.

 

Attorney General Merrick Garland emphasized that Apple's alleged monopolistic behavior has not only violated federal antitrust laws but has also led to increased prices and hindered technological progress. Highlighting the broad scope of the complaint, the lawsuit accuses Apple of several specific abuses of power, including manipulating its app review process to block the development of competing apps and smartwatch connections, as well as restricting access to its tap-to-pay technology.

 

The lawsuit also targets Apple's handling of text messages between iPhone users and those with rival devices, arguing that Apple's differentiation fosters a "social stigma" that further entrenches its market dominance.

 

In response, Apple has pledged to defend itself "vigorously" against these allegations, asserting that its customer loyalty stems from satisfaction with its products and services. The company has also cited privacy and security considerations as justification for its contested policies, maintaining that its practices are within the bounds of U.S. law.