Apple faces antitrust lawsuit over iPhone control

The US has filed a landmark case against Apple, accusing the tech firm of monopolizing the smartphone market and whipping competition.

The U.S. Department of Justice has filed a lawsuit against Apple, alleging that the tech giant used its dominance over the iPhone to unlawfully restrict competition and limit consumer choices. 

Apple has strongly denied the accusations and has pledged to vigorously defend itself against the lawsuit.

Allegations of Anticompetitive Behavior

The lawsuit, filed in a federal court in New Jersey, claims that Apple employed a range of tactics to stifle innovation and impede competitors. 

These alleged tactics include blocking apps with broad functionality, suppressing mobile cloud streaming services, restricting third-party digital wallets, and diminishing the functionality of non-Apple smartwatches.

Also read: Kering issues profit warning amidst Gucci sales decline

Undermining Innovation and Consumer Choice

Attorney General Merrick Garland stated that Apple’s actions have hindered the development of apps, products, and services that could offer consumers alternatives to the iPhone and potentially lower costs. He emphasized that consumers should not have to bear higher prices due to companies violating antitrust laws.

Maintaining Monopoly Power

Garland accused Apple of maintaining its monopoly power not through fair competition, but by violating federal antitrust laws. 

He highlighted how Apple’s ecosystem locks customers in while excluding competitors, making it challenging for users and developers to explore alternatives outside of the Apple ecosystem.

Apple’s Response

In response to the lawsuit, Apple spokesperson Fred Sainz refuted the allegations, stating that the company is committed to defending itself against what it considers to be incorrect interpretations of the law. 

Sainz emphasized that the lawsuit threatens Apple’s ability to innovate and deliver cutting-edge technology to consumers.

Conclusion

The lawsuit against Apple marks a significant legal challenge to the company’s practices regarding its control over the iPhone ecosystem. As the legal battle unfolds, the outcome will have implications not only for Apple but also for the broader tech industry and the future of competition in digital markets.