US Sues Apple of Monopolising Smartphone Market

The United States (US) sues apple after accusing the apple company of monopolizing the smartphone market and stifling competition.
The lawsuit, filed by the justice department in a federal court in New Jersey, claims that Apple has unlawfully leveraged its control over the iPhone to limit competitors and consumer choices. It accuses Apple of impeding the growth of new apps, suppressing rival products, and hindering the development of alternative services.
Attorney General Merrick Garland stated that Apple’s actions undermine potential apps, products, and services that could offer users alternatives to the iPhone, potentially leading to lower costs. The complaint outlines several alleged anti-competitive tactics employed by Apple, including blocking apps with broad functionality, restricting mobile cloud streaming services, limiting third-party digital wallets, and reducing the functionality of non-Apple smartwatches.
US Sues Apple of Monopolising Smartphone Market
During a news conference, Mr. Garland emphasized that Apple has maintained its monopoly not through fair competition but by violating federal antitrust laws. He highlighted the difficulty and expense both users and developers face when attempting to operate outside of Apple’s ecosystem, citing examples such as limited functionality and pixelated images for iPhone users messaging non-Apple smartphones.
READ ALSO: Telecel Refunds Data Bundle To All Subscribers
In response, Apple has vowed to vigorously defend itself against the lawsuit, with a company spokesperson asserting that the allegations are unfounded. The lawsuit marks the third time Apple has been sued by the justice department since 2009 and represents the first antitrust challenge against the company under President Joe Biden’s administration.
Anat Alon-Beck, a business law professor, criticized Apple for systematically excluding rivals from its ecosystem, arguing that this practice harms not only startup businesses but also customers and shareholders.
This legal action adds to the growing legal scrutiny Apple faces over its iOS ecosystem and business practices. Just last month, the European Union fined Apple €1.8 billion for violating competition laws in the music streaming market. Despite these challenges, Apple remains a dominant force in the smartphone market, with over 70% share in the US and more than 65% globally.