The US Department of Justice has filed an 88-page lawsuit against tech behemoth Apple, accusing it of establishing an illegal monopoly on the iPhone ecosystem. The lawsuit delves into different areas of Apple’s procedures, alleging they hurt both users and developers. The complaint also refers back to a 2022 interview in which Apple CEO Tim Cook was asked why the company had not made communicating between iPhones and Android smartphones easier. The interviewer asked, “It’s difficult. Not to be too personal, but I can’t email certain films to my mom,” to which Cook promptly replied, “Buy your mom an iPhone.” While intended to be a lighthearted comment, this statement has become a focal point in the landmark lawsuit against Apple.
The case accuses Apple of anti-competitive activity on numerous fronts
The lawsuit expressed worry about Apple’s tight control over its ecosystem and the impact on consumer choice. It also claims that Apple’s tactics hinder competition and raise costs for both customers and developers, thus impeding smartphone innovation. Deputy Attorney General Lisa Monaco stated that no company, no matter how large, prominent, or popular, is above the law. With today’s move, we reaffirm our unshakeable dedication to that ideal.” Acting Associate Attorney General Benjamin C. Mizer said, “When corporations engage in anticompetitive conduct, the American people and our economy suffer. Today’s action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation – that the Justice Department is committed to using every tool available to advance economic justice and root out anticompetitive practices, wherever they arise.”
The case accuses Apple of anti-competitive activity on numerous fronts. It says that Apple prohibits the development of cloud gaming services, limits non-Apple smartwatch functionalities, and restricts third-party digital wallets. The lawsuit further claims that these activities transcend specific examples to influence a wide range of industries, including web browsing, video communication, news, entertainment, automobile services, advertising, and location-based services.
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division claimed, “For years, Apple responded to competitive threats by imposing a series of ‘Whac-A-Mole’ contractual rules and restrictions that have allowed Apple to extract higher prices from consumers, impose higher fees on developers and creators, and throttle competitive alternatives from rival technologies. Today’s lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets.” Apple has yet to formally respond to the allegations, but the outcome of this legal battle could have far-reaching consequences.