The United States Department of Justice (DOJ) has initiated a significant antitrust lawsuit against Apple, accusing the tech giant of anti-competitive practices to bolster its market position and revenue. The lawsuit, which was filed in a federal court in New Jersey on March 21, 2024, is supported by 16 attorneys general from various states and the District of Columbia.
Central to the DOJ’s claims is Apple’s handling of the iPhone, which plays a crucial role in the company’s $2.7 trillion market valuation. With over a billion users globally, Apple has allegedly used its market power to undermine competitors, limiting their ability to compete fairly and prioritizing its own services.
The lawsuit criticizes Apple for allegedly enforcing restrictive rules that limit competition, impose higher costs, and potentially degrade the user experience. “Consumers deserve fair prices, not inflated costs due to antitrust violations,” said US Attorney General Merrick Garland. He warned that, without intervention, Apple’s dominance in the smartphone market would continue to grow unchecked.
This legal action represents the Biden administration’s strongest antitrust move to date, aligning with its efforts to address corporate consolidation, especially in the tech sector, which many believe has hindered competition.
In response, Apple has rejected the claims, vowing to defend itself in court. The company described the lawsuit as being based on misunderstandings of both facts and legal principles.
The California-based company has drawn increasing attention from regulators worldwide, including in Europe, Japan, and South Korea, due to concerns about its market practices. Known for its tightly controlled ecosystem, often referred to as a “walled garden,” Apple argues that this approach enhances user experience. However, the DOJ contends that these practices have allowed Apple to gain unfair advantages.
Assistant Attorney General Jonathan Kanter of the DOJ’s Antitrust Division highlighted that Apple has used a “Whac-A-Mole” approach to deal with competition, creating policies that limit rival technologies and result in higher costs for both consumers and developers.
The lawsuit aims to prevent Apple from using similar tactics in other markets, ensuring a more competitive environment. This case follows other high-profile antitrust actions from the Biden administration, including cases against Google and Amazon, as well as efforts to block acquisitions by companies like Microsoft and Meta Platforms, the parent company of Facebook.
Following the announcement of the lawsuit, Apple’s stock experienced a decline of over 3 percent.
