Apple hit with antitrust lawsuit in US amid global scrutiny
The Justice Department and 16 state attorneys general filed an antitrust lawsuit against Apple on Thursday. The government alleges that the Cupertino giant has breached regulations. Recently, the European Commission slapped Apple with a fine of £1.5 billion.
21 March 2024 20:19
According to the U.S. government, Apple has created barriers for other companies to offer apps that rival Apple's own, like digital wallets, potentially diminishing the iPhone's value.
Apple's policy damages consumers and smaller companies that compete with some of Apple's services - excerpts from the lawsuit published by the government, which was filed in the U.S. District Court for the District of New Jersey, disclose - as reported by "The New York Times".
The U.S. government concluded that Apple has built and solidified its monopoly in the smartphone sector.
"NYT" notes that the lawsuit is the culmination of years of scrutiny over Apple's hardware and services, which have propelled the company to a valuation of £2.21 trillion. This legal action primarily targets iPhones, the cornerstone of Apple's empire.
Apple responds to the government
According to the government, Apple didn't follow the same rules. It reportedly gave its products and services preferential access to essential features, while denying them to competitors.
"Over the years, it has limited financial firms' ability to utilize the phone's payment chip and Bluetooth trackers to access location services. Apple products, such as smartwatches and laptops, connect to the iPhone more seamlessly than those from other manufacturers" - as reported.
Apple counters by saying these measures enhance its products' security. Competitors argue this is how Apple monopolizes the market.
The spokesperson for the Silicon Valley behemoth, quoted by "NYT", believes that "this lawsuit challenges our core identity and the fundamentally unique principles of Apple's products in highly competitive markets". Apple stresses that the lawsuit aims to undermine the company's ability to create technology that meets customer expectations.
Antitrust probes were similarly launched against Meta, Amazon, and Google during Donald Trump's presidency.
The EU penalizes Apple
In early March, the European Commission levied its first-ever fine against tech giant Apple for breaching EU laws concerning access to music streaming services.
The European Commission determined that Apple stopped music streaming app developers, like Spotify, from informing iPhone users about cheaper payment alternatives outside of the Apple App Store - Politico reported. The EC penalized Apple with a fine of £1.5 billion.
"NYT" observes that the U.S. government's actions go well beyond what European legislators have pursued. The investigation didn't just focus on potential antitrust law breaches connected to the App Store. The U.S. regulator also scrutinized Apple's wider ecosystem and product range over several years.
