US government sues Apple for violating antitrust laws, tech giant accused of harming consumers and smaller companies

The US Justice Department and 16 state attorneys general have initiated an antitrust lawsuit against Apple on Thursday, marking the government’s most significant challenge to the tech giant’s dominance. The lawsuit alleges, Apple violated antitrust laws by stifling competition through restrictive policies that limit other companies from offering applications that rival its own products, such as digital wallets, potentially diminishing the value of iPhones.

FILE PHOTO: The Apple Inc. logo is seen in the lobby of New York City’s flagship Apple store January 18, 2011. REUTERS/Mike Segar/File Photo(REUTERS)

According to excerpts from the lawsuit released by the government, filed in the U.S. District Court for the District of New Jersey, Apple’s actions harm consumers and smaller companies competing with its services. The government asserts that Apple’s conduct has bolstered its smartphone monopoly over the years, creating an unfair advantage.

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“Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the government said in the lawsuit.

The lawsuit represents the culmination of years of regulatory scrutiny aimed at Apple’s suite of devices and services, which have propelled the company into a nearly $2.75 trillion entity. Central to the lawsuit is Apple’s flagship product, the iPhone, which has become the linchpin of its empire.

Critics argue that Apple maintains an uneven playing field by tightly controlling the user experience on its devices, granting preferential treatment to its own products and services over competitors. This control extends to limiting access to core features for finance companies and Bluetooth trackers, making it easier for users to connect Apple products to the iPhone compared to devices from other manufacturers.

Apple contends that its stringent control measures enhance security, but app developers and rival device makers argue that the company exploits its power to suppress competition.

In response to the lawsuit, an Apple spokeswoman expressed concern, stating that it threatens the company’s ability to innovate and could set a dangerous precedent for government intervention in technology design.

Despite previous legal challenges, Apple has successfully defended its business practices, emphasizing its commitment to fostering innovation and creating opportunities for various stakeholders. However, the outcome of this latest antitrust battle remains uncertain as it delves into the heart of Apple’s dominance in the tech industry.