The Justice Department’s lawsuit alleges that the company leveraged its control over the iPhone to unlawfully restrict competitors and consumer choices, aiming to stifle the growth of new apps and diminish the appeal of rival products. Apple has vehemently denied these allegations and pledged to vigorously contest the lawsuit.
Filed in a federal court in New Jersey, the complaint asserts that Apple employed a series of ever-changing regulations to hinder innovation and suppress competition.
Attorney General Merrick Garland stated that Apple’s actions undermine alternative apps, products, and services that could reduce dependence on the iPhone and lower costs for users and developers.
The complaint outlines various anti-competitive measures taken by Apple, such as blocking apps with extensive functionalities, suppressing mobile cloud streaming services, restricting third-party digital wallets, and limiting the functionality of non-Apple smartwatches.
Garland emphasized that Apple maintained its monopoly not solely through merit-based competition but also by violating federal antitrust laws. He highlighted the difficulties faced by iPhone users when communicating with non-Apple smartphones, citing limited functionality and compromised security.
A spokesperson for Apple, Fred Sainz, refuted the allegations, stating that the lawsuit misinterprets both facts and laws, and vowed to vigorously defend against it. Sainz argued that the lawsuit threatened Apple’s core principles and its ability to innovate in competitive markets. This lawsuit represents the third time Apple has faced legal action from the Justice Department since 2009 and is the first antitrust challenge against the company under President Joe Biden’s administration.
Apple has been confronting increasing legal scrutiny over its iOS ecosystem and business practices, including a recent €1.8 billion fine from the EU for violating competition laws in the music streaming sector. The European Commission found that Apple had abused its dominant market position for over a decade by restricting streaming services from informing users about alternative payment options outside the Apple App Store.
Apple has stated its intent to appeal the EU’s decision. According to the Justice Department, Apple commands over 70% of the US smartphone market and more than 65% of the broader smartphone market.
