DOJ Sues Apple for Monopolizing Smartphone Markets
- Date — The lawsuit was filed on March 21, 2024.
- Jurisdiction — Filed in the U.S. District Court for the District of New Jersey.
- Allegations — The DOJ and 16 state attorneys general accuse Apple of monopolizing or attempting to monopolize smartphone markets in violation of the Sherman Act.
- Specifics — Apple is accused of illegally maintaining a monopoly over smartphones by imposing contractual restrictions on developers and withholding critical access points, undermining innovation and imposing costs on consumers and developers.
- Practices — The DOJ alleges that Apple blocks 'super' apps, suppresses mobile cloud streaming services, limits third-party digital wallets, and more to maintain its dominance.
- Response — Apple has responded, stating that the lawsuit threatens the principles that set Apple products apart in competitive markets.
From justice.gov
The Justice Department, joined by 16 other state and district attorneys general, filed a civil antitrust lawsuit against Apple for monopolization or attempted monopolization of smartphone markets in violation of Section 2 of the Sherman Act.
justice.govVerified
Top Search Results
Allegations
- Legal Basis — The lawsuit is based on Section 2 of the Sherman Act, which prohibits monopolization or attempts to monopolize any part of trade or commerce.
- Impact on Competition — The DOJ alleges that Apple's actions have significantly reduced competition and innovation in the smartphone market.
- Specific Accusations — Apple is accused of blocking 'super' apps, suppressing mobile cloud streaming services, limiting third-party digital wallets, and hindering the functionality of third-party smartwatches.
From justice.gov
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.
justice.govVerified
Arc Search read websites across the internet to make you this perfect tab.
Try it for freeImplications
- Economic Impact — The lawsuit highlights the potential for Apple's practices to extract more money from consumers, developers, and businesses, leading to higher costs and reduced innovation.
- Market Dynamics — If the lawsuit is successful, it could lead to significant changes in how Apple operates its App Store and interacts with developers, potentially opening up the market to more competition.
- Industry Effects — The case is expected to have a widespread impact on the tech industry, similar to the DOJ's case against Microsoft in the '90s.
This case is likely to have a widespread impact, and given how long the DOJ’s case against Microsoft in the ’90s lasted, it could be a while before we see a resolution.
theverge.comVerified
Apple's Response
- Defense — Apple has defended its actions, stating that the lawsuit threatens the principles that set Apple products apart in fiercely competitive markets.
- Market Position — The company's response indicates a firm stance on its market position and the value it believes it brings to consumers and the industry.
- Legal Strategy — Apple's response suggests that it will vigorously defend against the allegations, indicating a potentially lengthy legal battle.
From theverge.com
A response to the lawsuit from Apple spokesperson Fred Sainz says, “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets.”
theverge.comVerified
