The U.S. Department of Justice filed a lawsuit against Apple on Thursday, marking a significant antitrust action by the Biden administration against the tech giant. The lawsuit alleges that Apple has monopolized smartphone markets, joining other major tech companies like Google, Meta Platforms, and Amazon.com in facing regulatory scrutiny.
Attorney General Merrick Garland emphasized the importance of preventing price hikes resulting from antitrust violations, stating, “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
The lawsuit contends that Apple leverages its market dominance to extract higher payments from consumers, developers, content creators, and small businesses. It accuses Apple of maintaining an illegal monopoly on smartphones by imposing restrictive contracts and withholding essential access from developers.
Apple has faced antitrust investigations and legal challenges in various jurisdictions, including Europe, Japan, and Korea. Notably, its App Store, a key revenue source charging developers commissions of up to 30%, has survived legal challenges but has been subject to regulatory scrutiny. Recent rulings have compelled Apple to adjust its policies, allowing developers to offer alternative payment methods.
Critics, including competitors like Spotify and Epic Games, argue that Apple still maintains unfair barriers to competition, particularly regarding access to iPhone hardware components and services such as contactless payments and messaging.
Apple has defended its restrictions on third-party access, citing privacy and security concerns. However, critics argue that these limitations stifle competition and innovation in the tech industry.
