US Department of Justice takes aim at Apple’s iPhone monopoly in landmark lawsuit

Apple is facing a lawsuit from the US Department of Justice and 17 other states, accusing the tech giant of illegally controlling the smartphone market, particularly with its iPhone line

Apple is being sued for stifling competitors and charging users too much, with a case that was filed on Thursday. The US Department of Justice, alongside 17 other states, has filed a lawsuit against tech giant Apple, saying that the company has illegally kept control of the smartphone market, especially with its iPhone line.

The case is mainly about Apple’s App Store, which the complaint says has strict rules for companies and coders who want to reach its 136 million users in the US alone. The Department of Justice says these rules are meant to keep people in the Apple environment and buy more of the company’s expensive hardware.

Attorney General Merrick Garland said, “Consumers should not have to pay higher prices because companies violate the antitrust laws.” He stressed how important it was to fight these kinds of antitrust violations, saying that letting Apple keep doing what it’s doing could make it even more dominant in the smartphone business.

On the other hand, Apple has strongly rejected the claims, saying that the case is based on wrong facts and legal readings. The company has vowed to fight the charges with all its might, saying that a verdict in favor of the government could set a bad example by giving regulators too much power over tech companies.

The case also says that Apple is stifling new ideas by stopping the creation of “super apps,” which would give people more ways to access services like movies, photos, and music. Prosecutors also say that Apple’s power over messaging apps makes it hard for iPhone users to talk to people who use Android devices, which causes people to choose Apple’s more expensive products.

This legal action comes amid growing scrutiny of Apple’s business practices as the company seeks to diversify its revenue streams beyond iPhone sales, which have shown signs of stagnation in recent years. With global sales reaching $383 billion in 2023 and net profits of $97 billion, Apple’s financial prowess has drawn attention from regulators, who note that its profits exceed those of any other company in the Fortune 500 and surpass the gross domestic product of over 100 countries.

Source: AFP