TeamDML offers insights, opinions, podcasts, videos and other forms of content intended to educate and better explain trending news that is made available to the public by third parties. In this particular case, we refer to an excerpt from NBCNews.com:
The U.S. Department of Justice filed a landmark lawsuit against Apple on Thursday, accusing it of monopolizing the smartphone market.
The civil suit, joined by attorneys general for 15 states and the District of Columbia, accuses Apple of restricting its smartphone operating system in a way that drives up costs for consumers and prevents developers from successfully releasing products on other smartphone systems.
“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland said in a news release.
“We allege that 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. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly. The Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices. That is the Justice Department’s legal obligation and what the American people expect and deserve,” Garland declared.
AG Garland alleges as part of Apple’s anti-competitive conduct, it makes it difficult for iPhone users to message with users of non-Apple products.
“By doing so, Apple knowingly and deliberately degrades quality, privacy and security for its users.” https://t.co/ATrD7rSiwo pic.twitter.com/uHpGwUsy0r
— CBS News (@CBSNews) March 21, 2024
From a press release posted by the Justice Department:
As alleged in the complaint, Apple has monopoly power in the smartphone and performance smartphones markets, and it uses its control over the iPhone to engage in a broad, sustained, and illegal course of conduct. This anticompetitive behavior is designed to maintain Apple’s monopoly power while extracting as much revenue as possible. The complaint alleges that Apple’s anticompetitive course of conduct has taken several forms, many of which continue to evolve today, including:
- Blocking Innovative Super Apps. Apple has disrupted the growth of apps with broad functionality that would make it easier for consumers to switch between competing smartphone platforms.
- Suppressing Mobile Cloud Streaming Services. Apple has blocked the development of cloud-streaming apps and services that would allow consumers to enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware.
- Excluding Cross-Platform Messaging Apps. Apple has made the quality of cross-platform messaging worse, less innovative, and less secure for users so that its customers have to keep buying iPhones.
- Diminishing the Functionality of Non-Apple Smartwatches. Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones.
- Limiting Third Party Digital Wallets. Apple has prevented third-party apps from offering tap-to-pay functionality, inhibiting the creation of cross-platform third-party digital wallets.
The complaint also alleges that Apple’s conduct extends beyond these examples, affecting web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, location services, and more. Apple has every incentive to extend and expand its course of conduct to acquire and maintain power over next-frontier devices and technologies.
For over a century, the Department has enforced the antitrust laws against illegal monopolies, deploying the Sherman Act to unfetter markets and restore competition. As alleged in the complaint, the Department is seeking equitable relief on behalf of the American public to redress Apple’s long-running, pervasive anticompetitive conduct.
Justice Department Sues Apple for Monopolizing Smartphone Markets
: https://t.co/sQuqVnTzaX pic.twitter.com/9ipWckqfvc
— U.S. Department of Justice (@TheJusticeDept) March 21, 2024
Below is a video of Garland’s press conference Thursday morning announcing the lawsuit against Apple.
BREAKING: The Justice Department is suing Apple, accusing it of monopolizing the smartphone market. https://t.co/PXBwxcFftq
— NBC News (@NBCNews) March 21, 2024
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