Today (March 21), the Department of Justice (DOJ) initiated a lawsuit against Apple, which alleged that the tech giant's practices violated the Sherman Antitrust Act of 1890. The complaint, which was submitted to the U.S. District Court for the District of New Jersey, stated that Apple's restrictive contracts and withholding of "crucial access points" from developers effectively monopolized the smartphone industry. The legal filing further claimed that, by impeding the development of apps, products, and services that could offer alternatives to the iPhone, Apple not only limited consumer choice, but also stifled innovation and imposed exorbitant costs on developers, businesses, and consumers.
“Consumers should not have to pay higher prices because companies violate the antitrust laws,” said U.S. Attorney General Merrick B. Garland in an official press release. “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. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly. The Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices. That is the Justice Department’s legal obligation and what the American people expect and deserve.”
Deputy Attorney General Lisa Monaco added, “No matter how powerful, no matter how prominent, no matter how popular -- no company is above the law. Through today’s action, we reaffirm our unwavering commitment to that principle.”
Assistant Attorney General Jonathan Kanter outlined Apple's alleged anticompetitive behaviors, which included "blocking innovative super apps," "suppressing mobile cloud streaming services," "diminishing the functionality of non-Apple smartwatches," and "limiting third-party digital wallets." The complaint also accused Apple of extending its monopolistic conduct across various sectors beyond smartphones.
The DOJ seeks "equitable relief on behalf of the American public to redress Apple’s long-running, pervasive anticompetitive conduct." As reported by CNN, Apple responded by stating, “We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it."