US Justice Department Sues Apple for Alleged Smartphone Market Monopoly
Summary from the AllSides News Team
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.
Featured Coverage of this Story
From the Left
Justice Department sues Apple for allegedly monopolizing the smartphone marketThe Justice Department sued Apple Inc. on Thursday for allegedly monopolizing the smartphone market.
Apple allegedly restricted developers of apps, products and services used on the iPhone that could otherwise lower costs for consumers, according to the lawsuit filed in New Jersey. The alleged monopoly allows Apple to extract more money from consumers, software developers, publishers and merchants, according to the lawsuit joined by 16 state and district attorneys general.
“We allege that Apple has consolidated its monopoly power not by making its own products better − but by making...
From the Center
DOJ, 16 states sue Apple for monopolizing smartphone marketThe Justice Department sued Apple on Thursday, alleging the company illegally maintained a monopoly over smartphones in a wide-ranging lawsuit.
The DOJ was joined by 16 bipartisan state attorneys general in the lawsuit filed in New Jersey , which alleges that Apple limits competition and hurts consumers, developers and small businesses through its operation of the company’s App Store, limiting the functions of third-party smart watches and hurting the quality of cross-platform messaging.
“For years, Apple responded to competitive threats by imposing a series of ‘Whac-A-Mole’ contractual rules and restrictions that have allowed...
From the Right
DOJ sues Apple in antitrust case, alleging illegal smartphone market monopolyThe Department of Justice is suing Apple over allegations of violating antitrust law.
Attorney General Merrick Garland and other top DOJ officials are set to make an announcement later Thursday. The lawsuit, which the department said was filed in the U.S. District Court for the District of New Jersey, targets Apple's grip on the smartphone market, according to a press release from the DOJ.
"Consumers should not have to pay higher prices because companies violate the antitrust laws," Garland said in a statement. "We allege that Apple has maintained monopoly...
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