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Published on March 21, 2024
Feds & States Slam iPhone Maker With Monopoly Suit In Jersey ShowdownSource: Google Street View

The Justice Department and a coalition of 16 states and district attorneys general have thrown the gauntlet down at Apple Inc., filing an expansive antitrust lawsuit on the grounds that the tech giant has unlawfully monopolized the smartphone market. The civil suit, lodged in the District Court of New Jersey, lays out a series of grave accusations, asserting that Apple has been flexing its corporate muscle to barricade developers and stymie apps, services, and products that could undercut its grasp on consumers and stunt the growth of competitors.

The legal action, as reported by the Justice Department's news release, contends that Apple's restrictive conducts, such as blocking 'super apps' capable of abetting consumer migration from iPhones, have stalled innovation and padded Apple's pockets at an inordinate cost to not just developers, but the whole swathe of businesses and consumers. The department argues that such measures have allowed Apple to amass monopoly power in both smartphones and high-performance smartphones markets, resulting in extracting offensively high amounts of revenue.

Attorney General Merrick B. Garland was sharp in his criticism, stating "Consumers should not have to pay higher prices because companies violate the antitrust laws." He indicated that the lawsuit aims to ensure Apple does not continue to cement its smartphone monopoly through illicit means. Meanwhile, Deputy Attorney General Lisa Monaco reinforced a stringent stance, proclaiming, "No matter how powerful, no matter how prominent, no matter how popular — no company is above the law," as noted in an SFist report.

For its part, Apple has fired back at the allegations, insisting the lawsuit is "wrong on the facts and the law." The company defended its integrated product ecosystem, which it claims is at the core of what customers expect from Apple. "This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets," said an Apple spokesperson, as quoted by the company to SFist. The spokesperson further warned that a successful suit could dent the way the company innovates, stating it would "set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology."