Apple has been accused of illegally monopolizing the smartphone market. The US Justice Department and more than a dozen states leveled the charges against the tech giant in what is being termed an antitrust lawsuit against Apple on Thursday. “Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits but by violating federal antitrust law.” Attorney General Merrick Garland stated, “Consumers should not have to pay higher prices because companies break the law.”
The case filed in the US District Court for the District of New Jersey does not come as a surprise; it was years in the making. The allegations include restrictive app store terms, high fees, and Apple’s “walled garden” approach to hardware and software. Apple, on the other hand, has downright refuted these allegations as baseless. They have made a counter allegation stating that these lawsuits will empower the government “to take a heavy hand in designing people’s technology.”
Garland also believes that “Monopolies like Apple’s threaten the free and fair markets upon which our economy is based. They stifle innovation. They hurt producers and workers and increase costs for consumers.” The case revolves around charges that iOS is too hands-on in blocking innovative apps, degrading Android messages on iPhones, restricting smartwatch compatibility, and hindering rival payment solutions.
This is the latest assault on Tech Giants’ freedom by the Biden administration. This is not an isolated case; cases against Google and Meta in the recent past follow the same trend. The Biden administration’s top DOJ antitrust official, Jonathan Kanter, believes that decades of corporate consolidation and anticompetitive practices have harmed the public.
Apple’s app store has also been under scrutiny for the way it handles its affairs. The company recently had a dirty legal spat with Epic Games, which accused Apple of monopoly and unjust treatment. Even though Apple prevailed in the lawsuit, it was only after it altered a few of its practices. Apple is also feeling the heat outside the US, with EU regulators also investigating the matters on the same line to ascertain whether or not Apple is using illegal means to restrict and upend competition.
Long story short, Apple’s reputation as a leading innovator and champion of tech advancement is at stake under Tim Cook’s leadership. The financial gains have been solid in the last couple of years, but that is not all when a company like Apple is in question.
