US Department of Justice Files Antitrust Lawsuit Against Apple, Alleging Monopolistic Practices

The United States Department of Justice (DOJ) has filed a civil antitrust lawsuit against tech giant Apple, accusing the company of stifling competition and illegally monopolizing the US smartphone market, as reported by Al Jazeera.

The 88-page suit, filed on Thursday in a New Jersey federal court, includes 16 state and district attorneys general joining the Department of Justice in the legal action.

At the heart of the lawsuit is Apple’s flagship product, the iPhone, which plays a crucial role in the company’s USD 2.7 trillion valuation. The DOJ alleges that Apple, with over a billion users, has manipulated market share to undermine competitors and benefit its own products.

The suit claims that rather than competing through offering more affordable services, Apple imposed restrictive rules and restrictions to extract higher fees, hinder innovation, provide a less secure user experience, and limit competitive alternatives.

US Attorney General Merrick Garland emphasized the impact on consumers, stating, “Consumers should not have to pay higher prices because companies violate the antitrust laws,” and warning that without challenge, Apple would strengthen its smartphone monopoly.

This lawsuit represents the Biden administration’s significant antitrust effort, aiming to address corporate consolidation, particularly in the technology sector, where smaller rivals struggle to compete. Previous actions have targeted major tech players like Google and Amazon, alongside efforts to block acquisition deals involving Microsoft and Facebook’s Meta Platforms.

Apple has contested the allegations, asserting that it will vigorously defend itself, describing the lawsuit as “wrong on the facts and the law.” The company’s strict integration between products and software, known as a “walled garden” approach, has faced scrutiny from anti-monopoly bodies globally.

Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division highlighted Apple’s response to competitive threats, stating that the lawsuit aims to hold Apple accountable and prevent similar practices in vital markets.

Following news of the lawsuit, Apple’s stock price experienced a decline of just over 3 per cent, according to Al Jazeera.