The United States Department of Justice (DOJ) has filed a landmark antitrust lawsuit against tech giant Apple, accusing the company of maintaining an illegal monopoly over the smartphone market through its App Store rules and restrictions.
The complaint, supported by 16 state attorney generals, alleges that Apple’s practices limit competition, stifle innovation, and allow the company to charge higher fees while offering a degraded user experience.
TLDR
The United States Department of Justice (DOJ) has filed an antitrust lawsuit against Apple, alleging that the company maintains an illegal monopoly over the smartphone market.
The DOJ claims that Apple’s App Store rules and restrictions limit competition, stifle innovation, and allow the company to charge higher fees while offering a degraded user experience.
Apple’s policies have affected various industries, including financial services, by ousting alternative payment systems and making it difficult for crypto-based apps to offer in-app purchases.
The DOJ alleges that Apple enforces its App Store rules arbitrarily, penalizing developers who threaten to compete with or erode Apple’s monopoly power.
The lawsuit accuses Apple of blocking innovative apps, suppressing mobile cloud streaming services, limiting cross-platform messaging, diminishing the functionality of non-Apple smartwatches, and restricting third-party digital wallets.
According to the DOJ, Apple’s “shapeshifting rules and restrictions” have had a significant impact on various industries, including financial services.
The company’s policies have ousted alternative payment systems, making it difficult for crypto-based apps to offer in-app purchases and forcing them to either disable functionality or face delisting from the App Store.
The lawsuit highlights several areas in which Apple allegedly abuses its power, such as blocking innovative apps that could make it easier for users to switch between competing platforms, suppressing mobile cloud streaming services, limiting cross-platform messaging, diminishing the functionality of non-Apple smartwatches, and restricting third-party digital wallets.
The DOJ also accuses Apple of enforcing its App Store rules arbitrarily, penalizing developers who threaten to compete with or erode the company’s monopoly power.
This has led to some crypto-based apps, such as NFT marketplaces and the Bitcoin-friendly social app Damus, having to disable certain features or face removal from the App Store.
In response to the lawsuit, an Apple spokesperson stated that the DOJ’s complaint was “wrong on the facts and the law” and that the company would vigorously defend against it. Apple claims that the lawsuit sets a dangerous precedent, potentially giving the government the power to dictate the design of people’s technology.
The lawsuit has already had an impact on Apple’s stock, with shares falling 4% on the day of the announcement. As the case progresses, it is expected to have significant implications for the tech industry and the future of competition in the smartphone market.
Oliver Dale
Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all.
His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@blockonomi.com
