U.S. sues Apple over ‘smartphone monopoly’ in antitrust lawsuit
Global News
The U.S. Justice Department alleges that Apple uses its market power to get more money from consumers, developers, artists and merchants.
The U.S. Department of Justice and 15 U.S. states on Thursday sued Apple alleging it monopolized smartphone markets in the first major antitrust effort against the iPhone maker by the Biden administration.
Apple joins a list of major tech companies sued by U.S. regulators, including Alphabet’s Google, Meta Platforms and Amazon.com across the administrations of both former President Donald Trump and President Joe Biden.
“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland said in a statement. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
The Justice Department, which was also joined by the District of Columbia in the lawsuit, alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants.
The civil lawsuit accuses Apple of an illegal monopoly on smartphones maintained by imposing contractual restrictions on, and withholding critical access from, developers.
“This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect,” Apple said in a statement.
Apple shares were trading 2.4% lower.
Apple has already been subject to antitrust probes and orders in Europe, Japan and Korea, as well as lawsuits from corporate rivals such as Epic Games.
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