• by Tanya Gazdik , March 21, 2024

The U.S. Dept. of Justice is accusing Apple of having a monopoly over the phone market that harms consumers, developers, and rival companies.

“The challenge strikes at the core of Apple’s walled-garden model and comes as regulators worldwide scrutinize tech companies,” according to CNBC. “The lawsuit claims Apple’s anti-competitive practices extend beyond the iPhone and Apple Watch businesses, citing Apple’s advertising, browser, FaceTime and news offerings."

Sixteen state attorneys general are joining the suit, which The New York Times says is “the federal government’s most significant challenge to the reach and influence of the company that has put iPhones in the hands of more than a billion people.”

“The government argued that Apple violated antitrust laws by preventing other companies from offering applications that compete with Apple products like its digital wallets, which could diminish the value of the iPhone,” according toThe New York Times. “Apple’s policies hurt consumers and smaller companies that compete with some of Apple’s services, according to excerpts from the lawsuit released by the government, which was filed in the U.S. District Court for the District of New Jersey.”

The lawsuit is the latest example of aggressive antitrust enforcement by the Biden administration, which has also taken on Google and Amazon.

Apple called the lawsuit “wrong on the facts and the law” and said it “will vigorously defend against it,” according to The Associated Press. 

Apple issued a statement that said the lawsuit, if successful, would “hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect” and would “set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”

The Justice Department says Apple limits choices with apps, text messaging, the ability to tap phones to buy lunch and options for seamlessly using a Garmin or Samsung smartwatch with an iPhone.

“Apple has previously said limitations like those protect your security and privacy,” according toThe Washington Post, which details the several limitations pointed out in the government’s lawsuit, “But the government says that Apple’s restrictions limit your choices to allow Apple to grow even richer at the public’s expense."