Justice Department sues Apple, alleging it illegally monopolized the smartphone market

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The Justice Department on Thursday announced a sweeping antitrust lawsuit against Apple, accusing the tech giant of engineering an illegal monopoly in smartphones that boxes out competitors, stifle…

FILE – The Apple logo is shown on a screen during an announcement on the Apple campus Sept. 12, 2023, in Cupertino, Calif. The Justice Department announced a sweeping antitrust lawsuit Thursday, March 21, 2024 against Apple, accusing the tech giant of having an illegal monopoly over smartphones in the U.S.

The suit takes aim at how Apple allegedly molds its technology and business relationships to “extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.” “The Department of Justice has an enduring legacy taking on the biggest and toughest monopolies in history,” said Assistant Attorney General Jonathan Kanter, head of the antitrust division, at a press conference announcing the lawsuit. “Today we stand here once again to promote competition and innovation for next generation of technology.”

The case seeks to pierce the digital fortress that Apple Inc., based in Cupertino, California, has assiduously built around the iPhone and other popular products such as the iPad, Mac and Apple Watch to create what is often referred to as a “walled garden” so its hardware and software can seamlessly offer user-friendly harmony.

Apple has defended the walled garden as an indispensable feature prized by consumers who want the best protection available for their personal information. It has described the barrier as a way for the iPhone to distinguish itself from devices running on Google’s Android software, which isn’t as restrictive and is licensed to a wide range of manufacturers.

“I am quite glad that access to SMS messages is restricted,” said Strafach, creator of the Guardian Firewall app.

 

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Justice Department and states accuse Apple of wielding a smartphone monopoly through market manipulationThe civil complaint, filed in the U.S. District Court for the District of New Jersey, alleges the company has illegally wielded a monopoly over the smartphone market by cutting off developers and stifling competitors with punitive restrictions.
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