DOJ Takes On Apple's iPhone Empire In Smartphone Antitrust Showdown
While Apple fans may be in favor of the walled garden, other companies, such as smart-tracker maker Tile and Epic Games, have contended the restrictions by Apple have created a monopoly in the smartphone market. However, Apple contends that its methods only add more privacy and security for its users. Now, the DOJ has decided to step in to the fray by filing a lawsuit against Apple.
The lawsuit goes beyond just the iPhone, extending to the Apple Watch, citing Apple’s advertising, browser, FaceTime, and news offerings as well. “Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the lawsuit stated.
In a statement, the DOJ remarked that in order to keep consumers buying iPhones, Apple decided to block cross-platform messaging apps, limited third-party wallet and smartwatch compatibility, and disrupted non-App Store programs and cloud-streaming services.
“Consumers should not have to pay higher prices because companies violate the antitrust laws,” remarked Attorney General Merrick B. Garland. “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.” Garland added that if left unchallenged, Apple would only continue to strengthen its smartphone monopoly.
“No matter how powerful, no matter how prominent, no matter how popular — no company is above the law,” added Deputy Attorney General Lisa Monaco. “Through today’s action, we reaffirm our unwavering commitment to that principle.”
The lawsuit also includes a complaint that Apple’s conduct also extends to “affecting web browsers, video communications, news subscriptions, entertainment, automotive services, advertising, location services, and more.” It adds that currently the tech giant has no reason to not follow the same course it has been on, and maintain its stranglehold on the market.
According to the DOJ, Apple’s monopoly generated an annual net revenue of $383 billion and net income of $97 billion in 2023. The company’s net income exceeds “any other company in the Fortune 500 and the gross domestic products of more than 100 countries.”