US accuses Apple of monopolizing smartphone market
Apple is the target of a lawsuit brought by the US, which claims the tech giant is monopolizing the smartphone market and stifling competition.
The Justice Department claims in the lawsuit that Apple has abused its control over the iPhone app store to “lock in” developers and users.
It charges the company with using unlawful measures to obstruct apps deemed dangerous and detract from competing goods.
Apple disputes the allegations and has promised to “vigorously” combat the lawsuit.
The extensive lawsuit, which was submitted to a federal court in New Jersey alongside the attorneys general of sixteen states, represents one of Apple’s largest legal challenges to date. In recent years, the company has been fending off growing complaints regarding its business practices.
It claims that in an effort to increase its own profits at the expense of customers and stifle innovation, Apple implemented “a series of shapeshifting rules” and restricted access to its hardware and software.
At a press conference announcing the suit, Attorney General Merrick Garland noted 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 anti-trust law”.
“Customers should not have to pay higher prices because companies break the law.”
The 88-page complaint centers on five alleged instances of Apple allegedly abusing its power.
For instance, the US claims that Apple obstructed the development of streaming apps and so-called super apps by using its app review process because it was concerned that these types of apps would make customers less likely to stick with iPhones.
Additionally, it claims that Apple has hindered the ability of iPhones to be connected to competing smart watches and prevented banks and other financial institutions from using its tap-to-pay technology, which has allowed Apple to profit billions of dollars from the processing of Apple Pay transactions.
The complaint also centers on Apple’s handling of messages sent from competing phones, which it identifies with green bubbles and restricts access to other features and videos.
According to the report, Apple’s actions have generated “social stigma” that has aided the tech giant in keeping control of the market.
Apple claimed that its customers were devoted because they were content and that it was free to select its business partners in accordance with US law. It has used security and privacy concerns as justification for its regulations.
Source; BBC
