The US Justice Department, along with 16 state and district attorneys general, has filed an antitrust lawsuit against Apple, accusing the tech giant of operating a monopoly that results in significant profits at the expense of consumers. The lawsuit alleges that Apple engages in anticompetitive behavior by imposing restrictive contractual terms on developers and limiting access to its devices, thereby stifling competition and driving up prices.
Among the specific allegations are claims that Apple disrupts potential "super apps" that could make it easier for users to switch to other devices, blocks cloud-streaming apps for video games to maintain reliance on its hardware, suppresses messaging quality with non-Apple devices, limits functionality of third-party smartwatches, and prevents third-party developers from creating competing digital wallets.
The lawsuit seeks to stop Apple from using its control over app distribution to undermine cross-platform technologies and prevent it from using private APIs to hinder competition. The enforcers are also asking for any other relief necessary to restore competition.
In response, Apple has defended its practices, stating that the lawsuit threatens its ability to innovate and create products that stand out in competitive markets. The company plans to vigorously defend against the lawsuit, including seeking to dismiss the case. Apple disagrees with the DOJ's definition of the relevant market, arguing that it should be the global smartphone market, not just the US market.
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