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The United States Department of Justice, along with numerous states, has initiated a significant antitrust lawsuit against Apple, alleging the tech giant of unlawfully monopolizing the smartphone market.
This lawsuit is part of a broader trend where Big Tech companies face increased scrutiny from the US government to address their unchecked dominance over the industry.
Attorney General Merrick Garland stated that Apple's alleged monopolistic practices violate federal antitrust laws, potentially leading to higher prices for consumers.
The lawsuit, filed in the US District Court for the District of New Jersey, follows years of criticism against Apple's app store policies, high fees, and closed ecosystem approach.
Apple denies the allegations, expressing concerns about government intervention in technology design.
Garland emphasized the detrimental effects of monopolies on markets, innovation, producers, workers, and consumer costs.
Garland on Thursday said Apple’s actions have wide-ranging effects.
“Monopolies like Apple’s threaten the free and fair markets upon which our economy is based. They stifle innovation. They hurt producers and workers and increase cost for consumers,” Garland said Thursday.
“If left unchallenged, Apple will only continue to strengthen its smartphone monopoly. But there’s a law for that,” he added.
Examples cited include Apple's preferential treatment of its own products over competitors' offerings, such as faster multimedia sharing between iPhones compared to Android devices.
Critics argue that Apple erects barriers hindering users and developers from exploring alternatives outside its ecosystem.
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Despite European regulations mandating access to iPhone tap-to-pay hardware, Apple maintains a 30% commission on most app store sales, leading to complaints from companies regarding unfair charges.
Apple asserts its intention to vigorously contest the lawsuit, claiming it is unfounded both factually and legally.
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