The United States Department of Justice has filed a landmark antitrust lawsuit against Apple, accusing the tech giant of illegally monopolising the smartphone market. The complaint, lodged in a federal court in New Jersey alongside 16 state attorneys general, alleges that Apple abused its control of the iPhone app store to lock in customers and developers, stifling competition and raising costs.
The 88-page complaint focuses on five areas where Apple is said to have abused its power, including thwarting super apps and streaming apps, limiting connectivity with rival smart watches, blocking access to tap-to-pay technology, and treating messages from rival phones with green bubbles to create social stigma. Attorney General Merrick Garland stated that Apple maintained monopoly power by violating federal antitrust law, not by staying ahead on merit.
Apple has vowed to vigorously defend itself, calling the lawsuit wrong on the facts and the law. The company argued that customer loyalty stems from satisfaction and that its rules are justified by privacy and security concerns. It will seek dismissal of the case, which it predicts will fail.
If the government prevails, the court could force Apple to overhaul its contracts and practices, or even lead to a break-up of the company. However, any changes would take years as the case proceeds through the courts. Shares in Apple fell more than 4% following the announcement.
This is the third legal action Apple has faced from the US government since 2009 and the first antitrust challenge under President Joe Biden. The case follows similar lawsuits against Google, Meta, and Amazon. Vanderbilt University professor Rebecca Allensworth described it as a blockbuster, aimed at increasing interoperability and competition in the smartphone market.
