DOJ Escalates War on Big Tech
Lawsuit against Apple alleges that the company has maintained a monopoly in the smartphone market by violating federal antitrust law.
The U.S. Department of Justice (DOJ) on Thursday filed a long-anticipated lawsuit against Apple, alleging the tech giant shut out competitors from accessing software and hardware features of its ubiquitous iPhone.
The case filed in federal court in New Jersey marks at least the third DOJ case against Apple in the past two decades alleging antitrust violations. It comes as Biden administration appointees at the DOJ and Federal Trade Commission (FTC) continue to unleash what competition experts call the most aggressive antitrust enforcement in decades.
In a statement Thursday, Attorney General Merrick Garland said the company engaged in illegal, anti-competitive practices to hinder efforts by other software developers to create products for iPhone users, tactics that both stymied innovation and caused consumers to pay higher prices.
“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Garland said. “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. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
Thursday’s suit adds to the regulatory headaches facing Apple, which already is battling a European Union (EU) investigation into whether the company is complying with the EU’s new Digital Markets Act, which regulates many aspects of digital services. The inquiry followed complaints by developers that new App Store rules resulted in price hikes for developers.
In a statement Thursday, Apple said it believes “this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”
The statement continued: “At Apple, we innovate every day to make technology people love—designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users. This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets.”
Legal observers say the DOJ has been scrutinizing Apple’s business practices around the iPhone for years, even before Democrat Joe Biden became president in January 2021.
A litany of prominent companies—including Epic Games, PayPal, Tile, and Spotify—have complained that Apple employs tactics which unfairly disadvantage outside software developers.
Fifteen state attorneys general and the District of Columbia joined with the DOJ in filing the suit.
From: Corporate Counsel