Apple Under Fire as US Government Files Antitrust Lawsuit

Paige Henley
Paige Henley Editor
Published on: March 26, 2024
Paige Henley Paige Henley
Published on: March 26, 2024 Editor

The US Department of Justice (DOJ) has initiated a major antitrust lawsuit against Apple Inc., accusing the tech behemoth of monopolizing the smartphone market. The lawsuit alleges Apple has unlawfully maintained its dominance in the smartphone and performance smartphone markets through restrictive practices that deter competition and innovation.

According to the DOJ, Apple’s monopolistic behavior encompasses a wide array of anticompetitive actions, including impeding the development of apps and services that could make users less reliant on the iPhone, promoting less interoperable products, and thereby increasing costs for consumers and developers.

These actions, the DOJ argues, not only stifle competition but also hinder innovation in apps, products, and services, ultimately imposing extraordinary financial burdens on developers, businesses, and consumers​​.

The lawsuit details several specific forms of alleged anti-competitive conduct by Apple, such as:

  • Blocking the growth of innovative super apps that could facilitate switching between competing smartphone platforms
  • Suppressing mobile cloud streaming services
  • Excluding cross-platform messaging apps
  • Diminishing the compatibility/functionality of non-Apple smartwatches
  • Limiting third-party digital wallets to favor Apple Pay

In addition to the DOJ’s allegations, the lawsuit is part of a broader trend of increasing scrutiny of major tech companies by the U.S. government. Critics of Apple argue that the company’s strict control over its ecosystem, while enhancing user experience, unfairly limits third-party access and favors Apple’s own products, thereby undermining competition.

This includes allegations of Apple offering preferential treatment to its services and imposing a 30% commission on most sales through its App Store, a practice contested by companies forced to comply due to Apple’s significant market share​​.

Apple, in response to the lawsuit, has vehemently denied the allegations, stating its intention to defend itself robustly against the claims. The company argues that the lawsuit misinterprets its efforts to innovate and deliver high-quality, secure, and private technology solutions to users, asserting that its practices are fundamental to its identity and the value it provides in competitive markets​​.

About the Author
Paige Henley
Published on: March 26, 2024

About the Author

Paige Henley is an editor at SafetyDetectives. She has three years of experience writing and editing various cybersecurity articles and blog posts about VPNs, antivirus software, and other data protection tools. As a freelancer, Paige enjoys working in a variety of content niches and is always expanding her knowledge base. When she isn't working as a "Safety Detective", she raises orphaned neonatal kittens, works on DIY projects around the house, and enjoys movie marathons on weekends with her husband and three cats.