US Sues Apple for Allegedly Monopolizing Smartphone Market

On Thursday, March 21, 2024, the US Department of Justice filed a lawsuit against Apple, alleging that the Cupertino Company's iPhone ecosystem monopolizes the market, leading to inflated prices for consumers and stifling competition.

The lawsuit could potentially lead to breaking up the tech giant, reminiscent of past antitrust actions against major corporations. 

According to the 88-page lawsuit, Apple's anti-competitive behavior extends beyond iPhones to its other products and services, including advertising, browser, FaceTime, and news offerings.

In line with this, US Attorney General Merrick Garland emphasized that allowing Apple's monopoly power to go unchecked could harm consumers by limiting choices and innovation.

Apple's stock saw a significant drop following the news, signaling potential risks to its business model. If successful, the lawsuit could compel Apple to make changes to its flagship products like the iPhone and Apple Watch, as well as its lucrative services division.

Apple has vehemently denied the allegations, arguing that the lawsuit threatens its ability to innovate and compete in the market. The tech giant insists that it provides value to consumers through its integrated hardware, software, and services. 

This legal battle follows years of investigations into Apple's business practices and previous antitrust cases, including disputes over e-book prices and alleged collusion.

The lawsuit specifically points out Apple's control over messaging apps, limitations on third-party compatibility with its products, and restrictions on cloud streaming services. Additionally, concerns have been raised about Apple's dominance in the smartphone market, with its iOS ecosystem accounting for a significant portion of market share compared to competitors like Samsung.

This legal action against Apple reflects broader scrutiny of big tech companies by government authorities, reminiscent of past antitrust cases against companies like Microsoft and Google. 

As the legal battle unfolds, it could have far-reaching implications not only for Apple but also for the tech industry as a whole. Stay tuned for updates.