WASHINGTON, D.C./CUPERTINO (The Thursday Times) — The United States Department of Justice, in collaboration with sixteen state and district attorneys general, has filed a significant antitrust lawsuit against Apple Inc., alleging that the tech giant is unlawfully monopolising the smartphone market through practices that restrict the functionality and accessibilities of iPhones. This lawsuit claims that Apple’s actions not only inflate prices for consumers and developers but also deepen users’ reliance on its smartphones. Specifically, the DOJ accuses Apple of selectively implementing contractual restrictions and withholding critical access to iPhone functionalities to stifle competition.
The government’s accusations against Apple cover several areas where it allegedly maintains its monopoly illegally. These include Apple’s efforts to disrupt “super apps” that could potentially make it easier for iPhone users to switch to competing devices by integrating multiple applications into a single platform, thus reducing the “stickiness” of iOS. The lawsuit also mentions Apple’s blockade against cloud-streaming applications, particularly for video games, which would otherwise diminish the demand for expensive hardware. Additionally, it addresses Apple’s practice of degrading messaging quality between iPhones and Android devices, limiting the interoperability of third-party smartwatches with iPhones (thereby deterring users from switching away from Apple devices due to compatibility concerns), and blocking third-party developers from creating competing digital wallet services that utilise tap-to-pay features on iPhones.
Jonathan Kanter, the Chief of the DOJ Antitrust Division, criticised Apple for its strategy of imposing contractual rules and restrictions in response to competitive threats, which he claims allows Apple to levy higher prices from consumers, charge higher fees on developers and creators, and throttle competition from rival technologies.
The lawsuit has been filed in the United States District Court for the District of New Jersey. The attorneys general of New Jersey, Arizona, California, Connecticut, Maine, Michigan, Minnesota, New Hampshire, New York, North Dakota, Oklahoma, Oregon, Tennessee, Vermont, Wisconsin, and the District of Columbia have joined the DOJ in this legal action. The plaintiffs seek judicial intervention to prohibit Apple from using its app distribution control to undermine technologies like super apps, cloud streaming apps, messaging services, smartwatch functionalities, and digital wallets. They are also requesting that the court prevent Apple from employing its contracts’ terms and conditions to perpetuate its monopoly.
At a press conference announcing the lawsuit, DOJ Deputy Attorney General Lisa Monaco described Apple as maintaining a “chokehold on competition” and accused it of stifling industry innovation, transitioning from a revolutionary role in the smartphone market to one that impedes its progress. U.S. Attorney General Merrick Garland emphasised the challenge posed by taking on a corporation as financially powerful as Apple, underscoring the government’s commitment to protecting the economy and the American public from such monopolistic practices.
Responding to the lawsuit, Apple spokesperson Fred Sainz defended the company’s policies and practices, arguing that the lawsuit threatens Apple’s foundational principles and its ability to innovate at the intersection of hardware, software, and services. Sainz warned that the lawsuit, if successful, could set a precedent for governmental overreach into technology design and vowed that Apple would vigorously defend itself against these allegations.
This lawsuit against Apple is part of a broader push by the U.S. government to address concerns of monopolisation within the tech industry, following on the heels of multiple antitrust suits filed against Google. The action reflects growing global efforts to regulate the influence of tech giants, as exemplified by Europe’s Digital Markets Act and recent fines imposed on Apple by the European Commission for its app store practices. Developers have long voiced concerns over Apple’s iOS platform, criticising its closed ecosystem and the competitive advantages it affords Apple’s own apps. This lawsuit represents a significant escalation in the ongoing discourse surrounding tech monopolisation, competition, and innovation.
