The U.S. Department of Justice, along with attorneys general from 16 states and the District of Columbia, filed a landmark antitrust lawsuit against Apple on Thursday, accusing the company of illegally monopolizing the U.S. smartphone market. Breitbart News uncovered his five major allegations that expose Apple’s monopoly power.
Ministry of Justice 88 page complaint The lawsuit, filed in the U.S. District Court for the District of New Jersey, alleges that Apple has engaged in continued anti-competitive conduct to maintain its dominance in the smartphone market, particularly in the premium segment known as “high-performance smartphones.” ing. The lawsuit alleges that Apple’s actions have resulted in higher prices, less innovation, and limited consumer choice.
It’s all about iPhone
Apple is a huge company with a wide range of products and services, but this lawsuit focuses solely on the iPhone and its associated App Store. Apple’s practices have been under intense scrutiny since the Trump administration in 2019, but the case was on hold during Epic Games’ civil lawsuit against Apple, which concluded last year.
The opening line of the complaint sets the tone, with the Justice Department writing: “Over the years, Apple has repeatedly responded to competitive threats by making it harder or more costly to exit, rather than making it more attractive for users and developers to exit.” . ” In the eyes of the government, this action “locked in users and developers while protecting its interests.”
Apps and “super apps”
The complaint alleges that Apple has used its control over the distribution and creation of apps to stifle competition and strengthen its monopoly power, including the “apple tax” that developers must pay through the App Store. Highlights key areas. But the lawsuit alleges that Apple blocks cloud-streaming apps because it sees such apps as a threat to its phone business, which means the iPhone giant has no control over “super apps” (usually multiple apps, including financial ones). They also claim that the system is inhibiting the development of programs that provide multiple services at the same time. Especially when it comes to gaming, cheaper hardware can provide a higher quality experience, reducing the need for expensive iPhones.
The scary “green bubble” when sending text messages
The lawsuit also alleges that Apple degrades third-party messaging apps to prevent cross-platform communication and reinforce the “green bubble” stigma associated with non-iPhone users. As Breitbart News previously reported, Google called Apple’s stance on texting “bullying.”
iMessage shouldn’t profit from bullying. Texting should bring us together. Solutions exist. Let’s fix this as an industry. 💚💙 https://t.co/18k8RNGQw4
— Android (@Android) January 8, 2022
smart watch compatibility
The lawsuit alleges that Tim Cook’s company is further protecting the iPhone market by restricting the functionality of third-party smartwatches to prevent them from becoming a viable replacement for the Apple Watch. . Apple Watch acts as a barrier to switching from iPhone to other smartphones. The Justice Department also alleges that Apple restricts access to near-field communication (NFC) technology and impedes the development of competing digital wallets with tap-to-pay capabilities.
CarPlay takes over the auto industry
According to the complaint, Apple also plans to introduce a more immersive CarPlay version, which displays key vehicle functions such as speed and HVAC, is evidence of the company’s illegal smartphone monopoly. The Justice Department said, “By applying the same restrictive framework to CarPlay, Apple could further enhance the iPhone’s capabilities by preventing the development of other disintermediation technologies that interoperate with the phone but reside outside of the device.” It’s locked up,” he said.
Plaintiffs allege that these practices have allowed Apple to maintain a market share of more than 65% in the U.S. smartphone market and more than 70% in the high-performance smartphone sector. They argue that Apple’s actions have harmed consumers by limiting innovation, reducing choice, and allowing the company to charge higher prices and collect fees from developers and financial institutions. There is.
In response to the lawsuit, Apple spokesperson Fred Sainz said, “This lawsuit threatens who we are and the principles that make Apple products stand out in a fiercely competitive marketplace.” The company claims the lawsuit sets a “dangerous precedent that gives governments greater power over the design of people’s technology.”
read The full lawsuit can be found here.
Lucas Nolan is a reporter for Breitbart News, where he covers free speech and online censorship issues.
