U.S. Government Sues Apple Over Monopolizing The Block: DOJ Says Monopoly Is Bad For Consumers

U.S. Government Sues Apple Over Monopolizing The Block: DOJ Says Monopoly Is Bad For Consumers


Photo by Rann Vijay

The U.S. Justice Department, along with attorneys general from more than a dozen states, has filed a landmark antitrust lawsuit against Apple, accusing the tech giant of unlawfully monopolizing the smartphone market. The lawsuit, announced on March 21, represents a major challenge to one of the world’s most valuable companies and underscores growing concerns over the unchecked power wielded by tech behemoths.

The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Apple has maintained its dominance in the smartphone industry through various anti-competitive practices. Attorney General Merrick Garland, speaking at a news conference, claimed that Apple had abused its monopoly power not by outcompeting rivals on merit, but by violating federal antitrust laws, CNN reported.

The complaint, said Garland alleges that ”Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits but by violating federal antitrust law.”

“Consumers should not have to pay higher prices because companies break the law,” he added.

At the core of the lawsuit are allegations that Apple has employed restrictive app store terms, exorbitant fees, and a “walled-garden” approach to its hardware and software to stifle competition and maintain its stranglehold on the smartphone market. Critics argue that while Apple’s products are renowned for their user-friendly design, the company’s tight control over its ecosystem limits consumer choice.

After news of the lawsuit, Apple’s stock dropped about 3.6 percent, The Wall Street Journal tweeted.

Apple, for its part, has vehemently denied the allegations, asserting that the lawsuit threatens its ability to innovate and deliver consumer-friendly technology. The company contends that its practices are necessary to ensure product quality, privacy, and security.

The lawsuit seeks to compel Apple to alter its business practices in three key ways. Firstly, it aims to prevent Apple from using its app store to block innovative new apps. Secondly, it seeks to eliminate restrictions that hinder integration between the iPhone and competing technologies such as messaging apps, smartwatches, and digital wallets. Finally, it calls for an end to contractual terms that perpetuate Apple’s alleged monopoly, The Verge reported.

Photo by Rann Vijay: https://www.pexels.com/photo/close-up-shot-of-iphones-7742555/