Apple in Crosshairs of US Antitrust Laws

Apple is being sued by the US Department of Justice and 15 states. The charge is the use of its dominant position to the detriment of competitors.

Apple will essentially discourage software and game developers from offering better apps for iPhones, resulting in higher prices for consumers. The Cupertino-based company is allegedly using the power it has acquired, particularly in the cell phone sector, to limit competition and choice for consumers.

“Consumers should not have to pay higher prices because the companies are violating antitrust laws,” explained Justice Minister Merrick Garland, according to a report by Italian news agency ANSA. “Over the past 12 years, Apple has become one of the most valuable companies in the world and maintains a monopoly in the smartphone industry by violating antitrust laws.” Garland emphasized that the problem is not monopoly itself, but that monopoly persists not because of superior products, but because of reduced competition. Simply put, Apple’s monopoly will hurt consumers, developers, and competing companies alike.

Apple’s business model has always been based on a “technological environment,” over which total control is exercised, while the DOJ would like to allow more freedom for developers to create apps that utilize Apple’s hardware to offer users more opportunities (and lower prices).

This action intensifies the “fight” in the USA against big tech: actions are also being taken against Alphabet, Google, Meta Platform, and Amazon.

Apple denies the accusations, explaining that “our ability to build the technology people expect from Apple is at risk.” The lawsuit is a dangerous precedent for the Cupertino-based company, as it empowers the government to play a major role in the development of technology.