Sixteen States and the Federal Government Sue Apple for Monopolozing Smartphone Market
The 88-page complaint was filed on March 21 in federal court, New Jersey District.
Among the most serious charges is that Apple engaged in a pattern of unfair business practices. These include restricting cross-platform apps, withholding data and access from app developers, and forcing difficult contracts on developers.
Smartphone Monopoly?
The Justice Department claims that these practices have resulted in a virtual monopoly on smartphone sales by Apple. They also say that this monopoly hurts app developers and smartphone competitors as well the users of iPhones and other Apple products.
“To protect its smartphone monopoly…Apple repeatedly chooses to make its products worse for consumers to prevent competition from emerging,”
the filing states.
That includes higher switching costs for consumers of smartphones.
Furthermore, Apple suppresses smartwatch competition by withholding the ability for non-Apple watches to respond to notifications, send messages, and effectively pair with the iPhone, said the filing.
Sherman Act
At the heart of the lawsuit is that the Justice Department believes Apple’s conduct violates the Sherman Act. Originally passed in 1890, this antitrust law aims to promote competition in commercial industries to the benefit of consumers and businesses alike.
“When corporations engage in anticompetitive conduct, the American people and our economy suffer,”
said Acting Associate Attorney General Benjamin C. Mizer in a March 21 press release.
“Today’s action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation.”
Apple’s Response
Apple denies all claims of monopolization and unfair business practices in statements to AppleInsider published on March 27.
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