OAN’s Avril Elfie
6:27pm – Thursday, March 21, 2024
The US Department of Justice (DOJ) has filed a lawsuit against Apple, accusing the company of monopolizing the smartphone market.
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Attorneys general from 15 states and the District of Columbia are joining this civil lawsuit, which seeks to challenge the way smartphones operate in ways that raise consumer prices and make it difficult for developers to successfully release their products on other smartphone systems. They are accusing Apple of restricting the system.
“Consumers should not have to pay higher prices just because a company violates antitrust laws,” Attorney General Merrick Garland said in a news release.
They also claim that Apple prevents developers from creating cross-platform messaging apps in order to force users to buy iPhones.
The Department of Justice (DOJ) has received complaints from customers that messages sent from devices other than iPhones appear green instead of iMessage’s typical blue color and have fewer features than messages sent between two iMessage users. He called attention to a common complaint.
Some Android smartphone owners have reported that they can’t watch videos at full size when someone using an iPhone sends them a text message.
At a press conference Thursday after the lawsuit was made public, Garland acknowledged Apple’s corporate advantage, noting that the company’s market capitalization exceeds the GDP of more than 100 countries. But he said this was more likely a result of Apple’s “exclusive” business practices than a superior product.
He argued that Apple outperformed its rivals “not by making its own products better, but by making other products worse.”
Apple refuted the claims in a statement, accusing the government of overreach.
It says it doesn’t have to adopt designs or guidelines that rivals might prefer, especially if they negatively impact the experience for iPhone users.
For example, Apple said it doesn’t create a version of iMessage that works on devices other than iPhones. This is because they cannot provide a user experience that matches the company’s standards.
“At Apple, we innovate every day to make technology people love, and design products that work together seamlessly, protect people’s privacy and security, and create magical experiences for users. ‘ says the company. “This lawsuit threatens who we are and the principles that make Apple products stand out in a fiercely competitive market. It would hinder our ability to develop technology. It would also set a dangerous precedent and give governments greater influence over how people design technology. We believe this is wrong according to the law, and we will vigorously defend ourselves.”
A long-running antitrust case against Facebook’s parent company Meta and a recent antitrust case against Amazon are both pending at the Federal Trade Commission, and the U.S. Department of Justice has already charged Google with monopolizing digital advertising services. are doing.
Additionally, in December, the Federal Trade Commission tried to block Microsoft’s now-completed acquisition of video game developer Activision.
The lawsuit against Apple is the attorney general’s third effort against the Cupertino, California-based tech giant.
“This is clearly an escalation of the Biden administration’s antitrust efforts against big tech companies and an ongoing threat,” said Dan Ives, managing director and senior equity research analyst at Wedbush Securities. “This adds to the antitrust lawsuit against Google and various other lawsuits against Meta and Amazon.” Note for investors.
The complaint further alleges that Apple has monopolies over many other products and services, including web browsers, video chat, news subscriptions, entertainment, automotive services, advertising, and location services.
“For years, Apple has responded to competitive threats by imposing a series of ‘whack-a-mole’ contractual rules and restrictions. This allows Apple to extract higher prices from consumers and provide more flexibility to developers and creators. They were able to charge higher fees and suppress competitive alternatives from rivals,” said Assistant Attorney General Jonathan Canter of the Justice Department’s Antitrust Division. “Today’s lawsuit aims to hold Apple accountable and prevent it from deploying similar illegal strategies in other important markets.”
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