The US Department of Justice (DOJ) filed an antitrust lawsuit against Apple alleging that the corporate giant held an unlawful monopoly over the American phone market. The suit (filed in the U.S. District Court for the District of New Jersey!) claims Apple’s monopoly harms customers, developers, and competitors. [1, 4] According to prosecutors, a multitude of components of Apple’s business, from Apple Watches to Apple Pay, helped spur its path towards becoming a monopoly. As a consequence of the announcement, the value of Apple shares dropped by 4%.
In fact, the government may even consider breaking up Apple, one of the largest companies on the globe, if it wins. A DOJ official explains that “structural relief” is a possibility should the United States prevail in the case. If the case against Apple proves successful, it will serve not as a lone example but as a catalyst for a series of breakups under the Sherman Antitrust Act of 1890. [1]
The DOJ claims that to continue encouraging customers to purchase iPhones, Apple obstructed access to cross-platform messaging apps, restricted third-party digital wallet and smartwatch compatibility with Apple devices, and interfered with non-App Store applications and streaming services. Apple argues that regulations cost the company significant amounts of money, blocking Apple from launching new products and services and negatively impacting consumer demand. [2] The company contends that these practices make their products higher-quality and more secure for customer use, while opponents respond that Apple crushes its competition through doing so.
The lawsuit is a result of the combined efforts of the DOJ as well as 16 other states and the District of Columbia. The case emerges as the latest debate in the midst of an antitrust crackdown led by the Biden Administration. Google, Meta, and Amazon currently face similar lawsuits. [3] Attorney General Merrick Garland commented that Apple and similar companies violated antitrust laws and would face the force of the federal government at its fullest. [4] Garland also alleged that Apple’s actions raised prices for everyday consumers. [5]
Though opinion is naturally mixed, a majority of the public seems to be pro-Apple on the issue. Across the political spectrum, citizens have condemned the DOJ for targeting what they say is a successful company. Some lamented that this was not a worthwhile use of the federal government’s resources. [3]
So what changes does the DOJ want to see Apple make? The prosecution seeks to achieve three key goals: prevent Apple from using its App Store to block new apps; prohibit Apple-imposed regulations that ban other apps and technologies from interacting with iPhones; and receive a court order to stop Apple from “entrenching” its alleged monopoly. [5]
As the legal battle unfolds, it will undoubtedly fuel broader debates surrounding competition, innovation, and regulatory oversight in the tech industry. The outcome of this case could set precedents for future antitrust enforcement actions and shape the landscape of the digital economy for years to come. In the meantime, public opinion remains inconclusive, reflecting the complex dynamics at play regarding where the line is drawn between a successful company and a stifling monopoly.
Sources
[1] DOJ sues Apple over iPhone monopoly in landmark antitrust case
[2] What to Know About the U.S. Apple Antitrust Lawsuit
[3] U.S. Sues Apple, Accusing It of Maintaining an iPhone Monopoly
[4] Justice Department Sues Apple for Monopolizing Smartphone Markets
[5] Apple sued in a landmark iPhone monopoly lawsuit | CNN Business