The Department of Justice (DOJ) has officially filed a case against Apple for its alleged anti-competitive practices that caused a monopoly in the phone market.
In addition, the DOJ also linked that even Apple Watch and Apple Pay play a role in the monopoly, harming consumers, developers, and competitors.
(Photo : Scott Olson/Getty Images)
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Apple Ecosystem as Source of Monopoly, DOJ Says
The DOJ, together with 16 other state and district attorney general, sued Apple for monopolization or attempted monopolization of smartphone markets. The lawsuit cited that it clearly violated Section 2 of the Sherman Act.
"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," said Attorney General Merrick B. Garland.
The lawsuit stated that Apple had been illegally maintaining its dominance through contractual restrictions and undermining services that would make users less reliant on iPhones. Moreover, the company was also accused of not promoting interoperability and cheaper alternative options for its consumers and developers.
Apple Accused of Harming Consumers, Developers
The DOJ detailed that Apple has been fighting competition by imposing rules that allowed the company to seek higher prices from consumers and higher fees for developers and creators. The same practices are also linked to stifling competitive alternatives from rival companies.
"Today's action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation - that the Justice Department is committed to using every tool available to advance economic justice and root out anticompetitive practices, wherever they arise," the DOJ wrote.
The lawsuit also specified all of Apple's alleged course of conduct such as blocking innovative super apps, suppressing mobile cloud streaming services, excluding cross-platform messaging apps, diminishing functionality on non-Apple smartwatches, and limiting third-party digital wallets.
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