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US Government Takes Legal Action Against Apple Over iPhone Monopoly Allegations

Image Source: kovop / Shutterstock

The US Government has filed an antitrust lawsuit against Apple, accusing the company of dominating the smartphone industry.

The lawsuit was jointly filed by the Justice Department, 16 States, and the District of Columbia in the U.S. District Court for the District of New Jersey.

The legal action comes after months of investigation and discussions with Apple. In late 2023, the US International Trade Commission briefly banned the sale of some Apple Watch models due to patent infringement but later allowed sales to resume after certain features were disabled.

Apple also faced scrutiny in the European Union over compliance with the Digital Markets Act, which raised concerns about fair competition in app marketplaces.

US Justice Department Files Antitrust Lawsuit Against Apple

The US Government’s lawsuit alleges that Apple’s restrictions make it harder for users to switch from Apple devices and give unfair advantages to Apple’s own apps. It claims that Apple’s actions limit innovation and cross-platform messaging security, making it challenging for users to switch away from iPhones.

The lawsuit asserts that Apple’s practices violate antitrust laws by using its market power to charge high prices to consumers and developers. It also highlights instances where Apple limited functionalities for various third-party services like digital wallets, web browsers, and video communication apps.

The lawsuit also focuses on Apple’s alleged restrictions on third-party smartwatches, which hinder competition in the smartwatch market by limiting access to necessary functionalities.

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The case questions Apple’s defense regarding the compatibility of the Apple Watch with Android devices, suggesting that Apple’s exclusivity with iPhones creates an artificial market that benefits its monopolistic position.

Image Source: kovop / Shutterstock

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