US Files Lawsuit Against Apple Over Smartphone Monopoly

US Government Takes on Apple: Antitrust Lawsuit Over Smartphone Monopoly

The US Justice Department and 16 states accused technology giant Apple on Wednesday of using exempt trade practices to retain a monopoly over its flagship product, the iPhone. A wide-ranging lawsuit filed jointly in New Jersey federal court alleges that Apple maintains control of the smartphone industry by selectively imposing contractual restrictions on app developers and withholding critical portability areas access to their products and other conventions on that's how they work.

Additionally, the lawsuit claims the tech giant uses that leverage to increase its product bed for customers. Apple’s iPhone dominates the U.S. market’s market share with 65 percent of the market and with that, the company has been quite successful.

U.S. Attorney General Merrick Garland said in a statement: “We allege that Apple has maintained dominance in the smartphone market, not only by maintaining a qualitative edge over the competition but by passing federal anti-trust laws that violate the use of it.”

“If they are suddenly abandoned, Apple will only consolidate its smartphone monopoly. The Justice Department will vigorously enforce antitrust laws that protect consumers from high prices and limited choice. That is the constitutional responsibility of the Justice Department that the American people expect and deserve.”

An Apple spokesperson said in a statement: “This lawsuit threatens who we are and the principles that set Apple products apart in highly competitive markets. If successful, it would hinder our ability to build the technology that people expect from Apple where hardware, software, and services go hand in hand. It would also set a dangerous precedent by giving the government the power to regulate people’s technology with a heavy hand.”

Five as summarized in a press release by the US. Here is the Justice Department's release.

First, it prevents the proliferation of apps with broad functionality that would make it easier for consumers to switch between competing iPhones and smartphones. Second, it hinders the growth of cloud-streaming apps and services that allow consumers to access high-quality video games and other cloud-based applications as they do on iPhones.

Third, the lawsuit argues that Apple made cross-platform message quality too good and too insecure to force consumers to stay on the iPhone. Fourth, the lawsuit alleges that Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch will face significant out-of-pocket costs if they dare to forgive their rival species.

Fifth, and finally, Apple has blocked third-party applications from offering tap-to-pay functionality, preventing the development of cross-platform third-party digital wallets.

Conclusion: The US federal lawsuit against Apple over its smartphone monopoly represents an important link in the relationship between major tech companies and regulators. As the legal battle continues, it will surely generate debate about competition, innovation, consumer rights, and the role of government in regulation that has grown the tech industry.