US Files A Lawsuit Against Apple For Manipulating Smartphone Market To Limit Consumer Choice

The United States is taking legal action against Apple, alleging that the tech giant has been using its dominance in the smartphone industry to stifle competition and limit consumer choice. This move is part of the Biden administration’s broader efforts to tackle the power of Big Tech companies.

The lawsuit, filed on Thursday in federal court in New Jersey by the U.S. Department of Justice and a bipartisan group of 16 state and district attorneys, accuses Apple of imposing restrictive contracts on developers and making it harder for users to switch devices.

Jonathan Kanter, the DoJ’s antitrust chief, criticized Apple’s approach to competition, describing it as a series of “Whac-A-Mole” tactics to eliminate rivals.

Apple has refuted the allegations, stating that the lawsuit is based on incorrect facts and legal principles.

The complaint alleges that Apple has abused its market power by hindering the growth of innovative apps and messaging services, undermining rival smartwatches, restricting tap-and-pay apps, and blocking game streaming apps. Earlier this year, Apple revised its policy to allow game-streaming apps on its App Store.

During a press conference, U.S. Attorney General Merrick Garland highlighted Apple’s significant net income, exceeding the GDP of over 100 countries, largely due to the success of the iPhone, which has a more than 65% share of the U.S. smartphone market.

Garland emphasized that Apple has maintained its monopoly power not through superior products but through exclusionary practices.

The company argues that the lawsuit could hinder its ability to innovate and create technology that sets its products apart in competitive markets.

This lawsuit marks the first antitrust challenge against Apple under the Biden administration, which is also pursuing antitrust cases against other major Silicon Valley companies.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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