The U.S. Department of Justice and 15 states filed a lawsuit against Apple, alleging monopolistic practices in the smartphone market, which inflated prices and disadvantaged smaller competitors.
Apple’s dominance, according to officials, results in higher consumer costs and increased profits for the company.
The lawsuit targets Apple’s pricing strategies, particularly its high iPhone prices and its profitable deals with various partners, including software developers and credit card companies.
The government aims to challenge Apple’s business model, which relies on dictating device functionality and limiting user choice.
Apple, however, refutes the allegations, arguing that the lawsuit threatens its innovative approach to technology and competition.
President Biden’s administration supports vigorous enforcement of antitrust laws, echoing the DOJ’s pursuit of changes within Apple.
The lawsuit seeks to compel Apple to alter its practices, possibly through structural changes or downsizing.
It accuses Apple of stifling competition by impeding rival technologies, such as messaging apps and smartwatches, from operating smoothly on its devices.
The Justice Department aims to redefine the smartphone market within the U.S., where Apple holds a significant share, although Apple contends the global market share is more relevant.
The DOJ cites internal emails from Steve Jobs, highlighting Apple’s efforts to control developers and consumers through its payment systems.
While specific remedies are not outlined, the DOJ seeks court intervention to prevent Apple from using its market dominance to disadvantage competitors and restore competitive conditions.
