US Justice Department Sues Apple for Alleged Smartphone Market Monopoly

The Justice Department filed a lawsuit against Apple Inc. on grounds of allegedly monopolizing the smartphone market.

Details: The lawsuit alleges that Apple strategically restricted developers of software, applications, and services that could have potentially reduced costs for consumers, allowing Apple to extract more money from consumers, software developers, publishers, and merchants.

Key Quotes: Attorney General Merrick Garland said in a statement, “Consumers should not have to pay higher prices because companies violate the antitrust law. 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. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.” Apple released a statement vowing to fight the lawsuit, stating that it could “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.”

For Context: This lawsuit marks the third occasion in the past 14 years where the Justice Department has sued Apple for antitrust violations. It's the first time the company has been accused of using illegal tactics to uphold its dominant position in the market.

How The Media Covered It: Outlets across the spectrum are reporting on the lawsuit. The Hill (Center bias) said the suit is “the latest the government has launched against a tech giant in recent years.” This summary was developed with the help of AllSides' AI technology.