The US government on Thursday filed a sprawling antitrust case against Apple, one of the world’s richest companies, alleging that the tech giant has illegally prevented competition by restricting access to its software and hardware.
The case is a direct challenge to the company’s core products and practices, including its iMessage service and how devices such as the iPhone and Apple Watch connect with one another.
The lawsuit, filed in federal court in New Jersey, alleges that Apple has monopoly power in the smartphone market and uses its control over the iPhone to “engage in a broad, sustained, and illegal course of conduct”, the Associated Press reported.
Apple is worth nearly $3 trillion, making it one of the highest valued companies in the world. And its iPhone is one of the most popular phones on earth, dominating the global market.
The Justice Department alleges it’s by no coincidence that Apple was able to ensure its place at the top.
Consumers should not have to pay higher prices because companies violate the antitrust laws,” said Attorney General Merrick B. Garland. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
The Justice Department says that because Apple imposes contract restrictions on developers, it means new innovation is kept within its ecosystem. The government says this allows Apple to take more money from consumers, developers, content creators, publishers, small businesses and more.
This is the third lawsuit the Justice Department has brought against Apple over antitrust violations in the past two decades. European regulators have also targeted the company over anticompetitive behavior, including claims of boxing out rivals with its music streaming service.
“No matter how powerful, no matter how prominent, no matter how popular — no company is above the law,” said Deputy Attorney General Lisa Monaco.
|CBS News/Reuters
