US DOJ-led complaint filed vs Apple for alleged smartphone market monopolization

The complaint says Apple maintained monopoly power in the market "not simply by staying ahead of the competition on the merits but by violating federal antitrust law."

File photo: Apple logo in a store in Hong Kong

US Department of Justice vs Apple

In a statement, the US Department of Justice said the agency, along with 16 other state and district attorneys general, filed a civil antitrust lawsuit against the tech giant. The complaint said Apple committed monopolization or attempted monopolization of smartphone markets in violation of Section 2 of the Sherman Act.

The complaint filed in the U.S. District Court for the District of New Jersey alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from, developers. It also said the tech giant undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers.

According to the lawsuit, Apple uses its monopoly to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.

US Attorney General Merrick Garland said consumers should not pay more just because companies violate antitrust laws.

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, he said.

If left unchallenged, Apple will only continue to strengthen its smartphone monopoly, he pointed out.

Acting Associate Attorney General Benjamin Mizer also said that the move "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."

Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division said the "lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets."

The complaint said that Apple's anti-competitive actions were conducted in different forms, which include blocking innovative super apps, suppressing mobile cloud streaming services, excluding cross-platform messaging apps, diminishing the functionality of non-Apple smartwatches, and limiting third-party digital wallets.

Aside from these, Apple's other actions have affected web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, location services, and more, the complaint said.

Through this monopolization lawsuit, the Justice Department and state Attorneys General are seeking relief to restore competition to these vital markets on behalf of the American public, the department said.

According to a report by CNN, Apple has denied the allegations, adding that it is ready to counter the claims. The company also said that the lawsuit could empower the government “to take a heavy hand in designing people’s technology.”

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Source: US Department of Justice; Via: CNN