U.S. Justice Dept sues Apple over “illegal monopoly”

The United States Justice Department, alongside 17 states, has initiated legal action against tech behemoth Apple.

The lawsuit, filed on Thursday, alleges that Apple engaged in anticompetitive practices, utilising its dominant position in the market to stifle competition and inflate consumer prices.

At the heart of the government’s antitrust complaint, lodged in a New Jersey federal court, is the accusation that Apple systematically obstructed software developers and mobile gaming companies from introducing alternative options on its flagship product, the iPhone.

This alleged behaviour, according to authorities, has led to diminished consumer choice and resulted in inflated prices for consumers.

The lawsuit further contends that Apple has wielded its control over the iPhone to impede the entry of innovative services, such as digital wallets, thereby limiting competition and innovation within the mobile ecosystem.

Additionally, the complaint accuses Apple of intentionally constraining the functionality of hardware products that vie with the company’s own offerings, creating an uneven playing field in the market.

Operating system

Notably, the legal action also takes aim at Apple’s practices regarding operating system exclusivity.

The suit alleges that Apple has erected barriers to prevent users from seamlessly transitioning to alternative devices, such as Android smartphones, by making it cumbersome to switch away from Apple’s proprietary operating system.

The allegations leveled against Apple underscore the intensifying scrutiny faced by major technology companies over their market dominance and business practices.

With regulators increasingly vigilant against anticompetitive behavior in the tech sector, the outcome of this lawsuit against Apple could have far-reaching implications for the future landscape of digital markets.