The U.S. Department of Justice today announced it has filed an antitrust lawsuit against Apple. The government lawsuit claims Apple holds an illegal monopoly on the smartphone market, due to the popularity of the iPhone and its locked-down iOS ecosystem.
The complaint was filed today in a U.S. District Court in New Jersey by the Justice Department and 16 other U.S. state and district attorneys general. The complaint accuses Apple of violating multiple U.S. federal and state antitrust laws, including the Sherman Act.
The Justice Department press release highlighted some of the allegations:
– Blocking Innovative Super Apps. Apple has disrupted the growth of apps with broad functionality that would make it easier for consumers to switch between competing smartphone platforms.
– Suppressing Mobile Cloud Streaming Services. Apple has blocked the development of cloud-streaming apps and services that would allow consumers to enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware.
– Excluding Cross-Platform Messaging Apps. Apple has made the quality of cross-platform messaging worse, less innovative, and less secure for users so that its customers have to keep buying iPhones.
– Diminishing the Functionality of Non-Apple Smartwatches. Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones.
– Limiting Third Party Digital Wallets. Apple has prevented third-party apps from offering tap-to-pay functionality, inhibiting the creation of cross-platform third-party digital wallets.
As you might imagine, Apple had a different opinion. In a statement shared with MacRumors, Apple said the government lawsuit is “wrong on the facts and the law. ”
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. If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.
The Justice Department claims Apple’s anticompetitive conduct also affects “web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, location services, and more.”