US government sues Apple over smartphone market monopoly

The Department of Justice and 15 state governments accuse Apple of monopolising the smartphone market, leading to higher prices and limited innovation for consumers.
04 April 2024
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The US government has filed an antitrust lawsuit against Apple, alleging the tech giant unlawfully dominates the smartphone market. This case draws parallels to the 1998 Microsoft case but faces challenges due to a changed tech landscape.

The government  accuses Apple of restricting app developers, limiting innovation, and raising consumer prices. Apple denies these claims and legal experts say the government must show Apple's practices harm consumers.

Allegations include stifling competition in super apps, cloud gaming, messaging, smartwatches, and digital wallets. For instance, Apple's iMessage creating obstacles like the "green bubble" issue with non-Apple users

While Apple's expanding power is a concern, legal experts note differences from the Microsoft case. They emphasise Apple's right to choose partners and design products, with a focus on harming rivals for long-term market dominance.

Unlike Microsoft's forced OS opening, Apple controls 55% of the North American smartphone market versus Android. 

The DOJ and FTC's readiness to challenge Apple signals a shift in antitrust enforcement strategy.

This high-stakes case reveals a willingness to tackle big tech monopolies, setting a precedent for future antitrust battles.

- CyberBeat


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