US files lawsuit against Apple, says company monopolising smartphone market

The United States has filed a lawsuit against Apple accusing the company of monopolising the smartphone market and crushing competition.

In a statement on Thursday, the US department of justice (DoJ) alleged Apple used its control of the iPhone to illegally limit competitors and consumer options.

The complaint, filed in the US district court, New Jersey, accused the company of squashing the growth of new apps and reducing the appeal of rival products.

DoJ said Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.

According to the statement, the justice department and state attorney general are seeking relief to restore competition to these vital markets on behalf of the American public through the monopolisation lawsuit.

The complaint lists a number of “anti-competitive” steps allegedly taken by Apple, including blocking apps with broad functionality, suppressing mobile cloud streaming services, limiting third-party digital wallets and “diminishing the functionality” of smartwatches not made by the company.

Merrick Garland, US attorney general, said consumers should not have to pay higher prices because companies violate the antitrust laws.

Garland added that unless Apple is challenged, it will continue to “strengthen its smartphone monopoly”.

“We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law,” he said.

“If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.

“The Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices.

“That is the Justice Department’s legal obligation and what the American people expect and deserve.”

Fred Sainz, Apple’s spokesman, said the lawsuit was wrong on the facts and the law, adding that Apple would vigorously defend against it.

“The lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” he said.

“If successful, it would hinder our ability to create the kind of technology people expect from Apple.”

The lawsuit marks the third time Apple has been sued by the justice department since 2009 and is the first antitrust challenge against the company under President Joe Biden’s administration.

Apple has faced a growing legal backlash over its iOS ecosystem and business practices.

On March 4, it was fined €1.8 billion by the European Union for breaking competition laws over music streaming.