LPL Financial’s chief technical strategist breaks down this week’s market trends and which sectors are worth investing in right now.
Apparently, nothing irritates the Biden administration more than business success. Apple is the latest target in the Justice Department’s continuing crackdown on what it calls tech monopolies.
The Department of Justice has already filed lawsuits against Amazon, Google, and Metaplatform. Now, they join 15 state attorneys general and the District of Columbia in a lawsuit filed in the U.S. District Court for the District of New Jersey, alleging that Apple’s policies are harming consumers and competitors.
They claim the company intentionally makes it difficult for users to switch to non-Apple devices and prevents competitors from offering alternatives to its services, such as digital wallets. The allegations relate not only to smartphones, but also to web browsers, advertising services, and more.
Justice Department files antitrust lawsuit against Apple, alleging illegal monopoly in smartphone market
Apple vehemently denies the accusations and vows to “vigorously defend” them against the charges. And many people think they have a solid foundation.
Apple is one of America’s most popular companies. However, the government’s pursuit has not stopped. File: The Apple Inc. logo on one of the company’s stores in Sydney, Australia, on Friday, March 18, 2022. (Brent Lewin/Bloomberg via Getty Images/Getty Images)
First, Apple’s iPhone accounts for just 57% of the U.S. smartphone market. Globally, that’s only about 20%. It cannot be called a monopoly. 41% of US cell phone users are on Android. This clearly shows that people who don’t want to use Apple’s devices can easily find alternatives. Again, this does not fit the definition of monopoly.
The Justice Department, politicized by President Joe Biden’s campaign strategy to “go after” Big Tech, says people use iPhones and buy other Apple products simply because they like them. I don’t realize that I’m making a choice.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Apple is one of America’s most popular companies. They don’t push cell phones on consumers and sell a lot of them, they just make good products.
Apple has been one of the world’s great innovators for nearly 50 years. Apple, which started in a California garage in the 1970s, currently holds 95,500 patents and continues to file thousands of new patents each year. If the government were to take responsibility for how Apple designs and develops its products, it would put a brake on one of the U.S. economy’s most powerful economic engines.
Apple CEO Tim Cook (center, right) and Worldwide Marketing SVP Greg Joswiak (center, left) ahead of the launch of Apple’s new iPhone 15 in New York City on September 22, 2022. Welcome visitors to the Apple Store. (Photo by Alexi Rosenfeld/Getty Images)
“This lawsuit threatens who we are and the principles that differentiate Apple products in a fiercely competitive market,” an Apple spokesperson said in an interview with CNBC. “It’s going to hinder our ability to develop the kind of technology that we expect from Apple, where the hardware is.” “Software and services intersect. It could also set a dangerous precedent, giving governments more power over how people design technology.”
Click here to read more on FOX Business
That’s a pretty valid argument. To be sure, weaponizing the Justice Department to destroy American companies that meet consumer needs, employ thousands of workers, and generate billions in tax revenue for all levels of government is dangerous. It will set a precedent. Why would the government want to do that?
In a competitive technology market where companies are continually working to develop better products, services and technology, there is a far greater ability than the Biden administration to determine Apple’s future. Don’t involve the Department of Justice.
Click here to read more by Steve Forbes
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. his latest book, ”America Comes Back: How Repealing Obamacare, Replacing the Tax Code, and Reforming the Fed Will Restore Hope and Prosperity.”.
