The United States sues Apple for illegally monopolizing smartphones

The Justice Department and 16 state and district attorneys general have filed a civil antitrust lawsuit against Apple for allegedly monopolizing or attempting to monopolize smartphone markets in violation of Section 2 of the Sherman Act.

According to the US Justice Department’s statement, the complaint, filed in the U.S. District Court for the District of New Jersey, accuses Apple of illegally maintaining a monopoly over smartphones by imposing contractual restrictions on developers and withholding critical access points. According to the Justice Department, these actions undermine apps, products, and services that could promote interoperability and lower costs for consumers and developers.

Attorney General Merrick B. Garland stated:

“Consumers should not have to pay higher prices because companies violate the antitrust laws. We allege 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. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly. The Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices. That is the Justice Department’s legal obligation and what the American people expect and deserve.”

“No matter how powerful, no matter how prominent, no matter how popular — no company is above the law,” said Deputy Attorney General Lisa Monaco. “Through today’s action, we reaffirm our unwavering commitment to that principle.”

Acting Associate Attorney General Benjamin C. Mizer said:

“When corporations engage in anticompetitive conduct, the American people and our economy suffer. Today’s action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation — that the Justice Department is committed to using every tool available to advance economic justice and root out anticompetitive practices, wherever they arise.”

Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division asserted, “Today’s lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets.”

The complaint alleges that Apple’s anticompetitive behavior includes:

  • Blocking innovative super apps.
  • Suppressing mobile cloud streaming services, excluding cross-platform messaging apps.
  • Diminishing the functionality of non-Apple smartwatches.
  • Limiting third-party digital wallets.

Apple Inc., a publicly traded company headquartered in Cupertino, California, generated annual net revenues of $383 billion and net income of $97 billion in fiscal year 2023. The full complaint can be accessed via the link.

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