US President Joe Biden’s administration filed a lawsuit against Apple this Thursday, stating that the technology giant created a monopoly on the smartphone market with its iPhone model.
The suit, filed in federal court in New Jersey, is the first major antitrust effort against Apple by the Biden administration.
“Consumers should not have to pay higher prices because companies are violating antitrust laws,” Attorney General Merrick Garland said in a statement.
“If that doesn’t change, Apple will continue to strengthen its monopoly on smartphones,” he added.
The lawsuit, filed by the Justice Department and 16 state attorneys general, accuses Apple of restricting access to the technology it uses for the iPhone in a way that increases costs for consumers. and potential rivals are prevented from launching other smartphones.
The Justice Department claims that Apple used its control over the iPhone to “engage in widespread and persistent unlawful conduct.”
Among other things, the lawsuit alleges that Apple is preventing the successful development of so-called “super apps” that would allow consumers to switch smartphones more easily.
Apple has also been accused of blocking the development of streaming apps that would allow users to enjoy high-quality video without having to pay for more cloud space or hardware for a phone to support it.
The case specifically targets the digital fortress that Apple has created not only with the iPhone, but also with other products such as the iPad, Mac and Apple Watch so that consumers must rely on those devices and cannot combine them with other products from other companies.
Apple, based in Cupertino (California), rejected the allegations and accused the US government of overstepping its bounds in its accusations, according to a statement carried by local media.
“This lawsuit threatens who we are and the principles that differentiate Apple products in intensely competitive markets,” defended Apple, which asserted that if the lawsuit succeeds, it will set a “dangerous precedent,” giving the government the power to intervene in the design of technology.
With this lawsuit, Apple joins the list of tech giants against which the Biden administration has gone on the offensive.
The Department of Justice has already sued Google for monopolizing digital advertising services and The Federal Trade Commission has a pending antitrust case against Facebook’s parent company Meta and another against Amazon.
Apple is one of the most powerful companies in the world with an annual revenue of almost 400 billion dollars and until recently a market value of more than 3 trillion dollars.
Source: Panama America
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
