The US Department of Justice has launched a significant antitrust lawsuit against Apple, accusing the tech giant of engaging in monopolistic practices within the smartphone market, aiming to curb its alleged control over competition and innovation.
The US Department of Justice has initiated a major antitrust lawsuit against Apple, accusing the technology company of monopolistic practices in the smartphone market. Filed in a federal court in New Jersey, the lawsuit alleges that Apple has intentionally degraded the iPhone experience to maintain its market dominance, specifically highlighting reduced privacy protections and feature restrictions. US Attorney General Merrick Garland expressed concerns over these actions potentially stifling competition and innovation, reinforcing Apple’s monopoly, which is said to control about 60% of the US smartphone market.
The legal action portrays Apple as maintaining an illegal monopoly through contractual restrictions and accuses the company of locking customers into its ecosystem while excluding competitors. This move reflects a growing trend of US regulatory actions against big tech firms, indicating a shift towards tighter oversight.
In response to the lawsuit, Apple’s market value experienced a dramatic $100 billion decrease as its shares fell by 3.8%. Apple has countered the claims, insisting on its commitment to innovation, privacy, and security, and vowing to defend itself vigorously against what they describe as baseless accusations.
The case against Apple is part of a broader scrutiny under which the tech industry finds itself. Alongside the lawsuit in the US, Apple has also faced significant regulatory actions in Europe, including a €1.8 billion fine from the EU for restricting competition in music streaming services. The outcome of the US Justice Department’s lawsuit and its impact on the tech industry remain to be seen, marking a crucial moment for regulatory actions against monopolistic practices within the sector.
