WASHINGTON: The US Department of Justice filed a lawsuit against Apple, alleging that the tech giant illegally maintained a monopoly on its iPhone, stifling competition and imposing high costs on consumers.
The lawsuit, supported by multiple US states, accuses Apple of making it difficult for consumers to switch to cheaper devices and smartphones.
This clash marks Apple’s first major confrontation with the US government after years of minimal scrutiny. Apple’s stock dropped by up to 4.3 per cent following news of the lawsuit.
At the core of the case are Apple’s alleged exclusionary practices, including strict conditions for developers and firms seeking access to its 136 million US iPhone users.
The lawsuit claims that these practices are designed to lock users into the Apple ecosystem, enriching the company at the expense of innovation and consumer choice.
Apple responded, stating the suit was “wrong on the facts and the law” and vowed to defend vigorously against it, warning that it could set a dangerous precedent.
The company argued that the government’s case would benefit companies wanting to do business on the iPhone without charge.
The lawsuit accuses Apple of hindering the creation of Super Apps, which offer multiple services in one place, and of imposing fees on services like tap payments and messaging apps.
Prosecutors also allege that Apple makes it difficult for its users to interact with Android users, incentivizing them to buy more expensive iPhones.
Furthermore, the complaint mentions restrictions on smartwatches and other services such as web browsers and entertainment.
Apple has announced plans to implement changes to improve interoperability on messages. Overall, the lawsuit underscores growing concerns about tech giants’ market dominance and their impact on competition and consumer choice. – AFP
