Crime & Justice

Biden’s government sues Apple for creating a monopoly in the phone market

Washington, Mar 21 (EFE) – The US Department of Justice sued Apple on Tuesday, accusing it of creating a monopoly through the iPhone ecosystem, which helped promote its “astronomical value” at the expense of consumers, developers, and competitors.

The lawsuit, filed in federal court in New Jersey marks the Biden administration’s first major antitrust effort against Apple.

“Consumers should not have to pay higher prices because companies violate antitrust laws,” said Attorney General Merrick B. Garland.

“Left unchallenged, Apple will only further entrench its smartphone monopoly,” he added.

According to the Department of Justice, Apple’s contractual restrictions on developers have kept innovation within its ecosystem, allowing it to take more money from consumers, developers, content creators, publishers, small businesses, and others.

The DOJ claims the lawsuit “seeks to hold Apple accountable and ensure that it cannot use the same unlawful playbook in other markets.”

It also alleges that Apple is preventing the successful development of so-called “super apps” that would allow consumers to easily switch smartphones.

Apple is also accused of blocking cross-platform messaging apps, limiting third-party wallets and smartwatch compatibility, and disrupting non-App Store programs and cloud streaming services.

The lawsuit could force the tech giant to change some of its most valuable businesses, posing a significant risk to its “walled garden” business model.

The lawsuit targets the digital fortress that Apple has created through products such as the iPhone, iPad, Mac, and Apple Watch, ensuring that consumers rely on these devices and cannot bundle them with products from other companies.

Cupertino, California-based Apple denied the allegations and accused the government of overreaching, according to a statement picked up by local media.

“This lawsuit threatens who we are and the principles that set Apple products apart in highly competitive markets,” Apple defended.

Also added that it “sets a dangerous precedent, empowering the government to take a heavy hand in designing people’s technology.”

With this lawsuit, Apple is now included in the list of technology giants the Biden administration has gone after.

The Justice Department has already sued Google for monopolizing digital advertising services, and the Federal Trade Commission has an antitrust case pending against Facebook’s parent company, Meta, and another against Amazon.

Apple is one of the world’s most powerful companies, with annual revenues of nearly $400 billion and, until recently, a market value of more than $3 trillion. EFE

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