Apple accused of illegal market monopoly that stifles innovation in historic US lawsuit

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The lawsuit accuses the tech giant of using its 'walled garden' design and control of the iPhone to stifle innovation and block competitors from the smartphone market.

The US has launched an antitrust lawsuit against tech giant Apple, alleging it has created an illegal monopoly over the smartphone market.Apple said if the lawsuit was successful, it would set a dangerous precedent that would allow the "government to take a heavy hand in designing people's technology".

The lawsuit — which was also filed with 16 state attorneys-general — is the latest example of the justice department's approach to aggressive enforcement of federal antitrust law that officials say is aimed at ensuring a fair and competitive market, even as it has lost some significant anti-competition cases.

The increased policing of corporate mergers and business deals has been met with resistance from some business leaders who have said the Democratic administration is overreaching, but it has been lauded by others as long overdue.

Antitrust regulators have made it clear in their complaint that they see Apple's walled garden mostly as a weapon to ward off competition, creating market conditions that enable it to charge higher prices that have propelled its lofty profit margins while stifling innovation.

 

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