The US Justice Department is suing Apple, accusing it of violating antitrust laws and having a monopoly on the phone market that harms consumers, developers and rival companies with its "astronomical valuation ". Apple's ecosystem, from Apple Watches to Apple Pay, supports this monopoly, according to the indictment.
Federal antitrust regulators and 16 states say Apple's anticompetitive practices extend well beyond the iPhone and Apple Watch to FaceTime, its browser, advertising and news offerings. “Every step taken by Apple builds and reinforces its monopoly in the smartphone market,” is the accusation in the documents delivered to the New Jersey district court. Apple shares now lose 3%.
To keep consumers buying iPhones, Apple blocks cross-platform messaging apps, limits third-party wallets and smartwatch compatibility, and blocks programs that aren't on the app, according to the Justice Department. Store and cloud-streaming services. The antitrust lawsuit could force Apple to make changes to its business model related to its most valuable assets: the iPhone, which recorded sales of more than $200 billion in 2023, and the Apple Watch, which is part of the $40 billion wearables business.
“If left alone, Apple will only continue to strengthen its monopoly in the smartphone market,” wrote Justice Secretary Merrick Garland. Apple responded, with a press release, that it does not agree with the assumptions of this lawsuit and that it will defend itself in the appropriate forums. An Apple spokesperson, speaking on CNBC, said that «this lawsuit threatens who we are and the principles that have allowed Apple's products to stand out in very competitive markets. If this lawsuit succeeds, it will threaten our ability to create the kind of technology people expect from Apple. It would also create a dangerous precedent."
(Unioneonline/D)