The tech giant is accused by the US in a historic case of monopolizing the smartphone market and stifling competition.
The Justice Department claims in the case that the firm unlawfully restricted consumer options and competition by abusing its dominance over the iPhone.
According to the complaint, it discourages the development of new apps and lessens the allure of competing goods.
Apple disputes the allegations and has promised to “vigorously” combat the lawsuit.
Apple is accused of using “a series of shapeshifting rules” in order to “thwart innovation” and “throttle” rivals, according to the case, which was submitted to a federal court in New Jersey.
Attorney General Merrick Garland claimed the business “undermines apps, products and services that would otherwise make users less reliant on the iPhone… and lower costs for consumers and developers” in a statement.
The lawsuit enumerates several purported ”
Mr. Garland stated, “Consumers should not have to pay higher prices because companies break the law,” charging Apple with “locking its competitors out” and “locking its customers in.”
He brought up the experience of iPhone users messaging non-Apple cellphones, claiming that this resulted in “limited functionality” such as distorted photos and non-encrypted messages.
“Apple creates barriers that make it extremely difficult and expensive for both users and developers to venture outside the Apple ecosystem,” said Mr. Garland.
Apple would “vigorously defend against it,” said to spokesperson Fred Sainz, who told US media that the action was “wrong on the facts and the law.”
anti-competitive” actions by the corporation, such as limiting third-party digital wallets, suppressing mobile cloud streaming services, prohibiting apps with extensive capability, and “diminishing the functionality” of smartwatches that are not produced by the company.
At a news conference on Thursday, Mr Garland said Apple had “maintained its monopoly, not simply by staying ahead of the competition on the merits, but by violating federal antitrust laws”.
“The lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” said Mr. Sainz. “If successful, it would hinder our ability to create the kind of technology people expect from Apple.”
This is the first antitrust lawsuit against Apple under President Joe Biden’s administration, and it is the third time the Justice Department has sued the corporation since 2009.
Professor of corporate law at Case Western Reserve University in Ohio, Anat Alon-Beck, claimed to the BBC that Apple “systematically” keeps competitors out of its ecosystem.
“By doing that, Apple is hurting so many start-up businesses, stakeholders, customers, and in my opinion, its shareholders,” she stated.
A growing legal backlash against Apple has been directed towards its business practices and iOS environment.
“Our identity and the values that established Apple Pro are at risk due to the lawsuit.”It was fined €1.8 billion (£1.5 billion) by the EU last month for violating competition laws pertaining to music streaming.
The European Commission said that the company has stopped streaming services from telling customers about payment options available outside of the Apple app store.
Apple was ordered to eliminate all restrictions by competition commissioner Margrethe Vestager, who claimed that the tech giant had exploited its dominating position in the market for ten years. Apple declared that it would file an appeal of the ruling.
Apple has a market share of over 70% in the US smartphone industry and over 65% in the global smartphone market, according to the law department.
BY- HHM
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