US accuses tech giant Apple of controlling the smartphone market in a lawsuit.
The US has filed a landmark lawsuit against Apple, alleging that the tech giant is suppressing competition and controlling the smartphone market.
The US accuses tech giant Apple of controlling the smartphone market in a lawsuit.The Justice Department claims in the lawsuit that the business exploited its dominance over the iPhone app store to “lock in” developers and users.It charges the company with using unlawful measures to obstruct apps deemed dangerous and detract from the allure of competing goods.Apple disputes the allegations and has promised to “vigorously” combat the lawsuit.The extensive lawsuit, which was submitted to a federal court in New Jersey alongside the attorneys general of sixteen states, is one of Apple’s largest legal challenges to date. In recent years, the company has been fending off growing accusations against its business methods.It claims that in an attempt to increase its own profits at the expense of users and limit innovation, Apple implemented “a series of shapeshifting rules” and restricted access to its hardware and software.Attorney General Merrick Garland stated at a press conference announcing the lawsuit, “Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits but by violating federal anti-trust law.”
“Customers should not have to pay higher prices because companies break the law.”For instance, the US claims that Apple obstructed the creation of streaming apps and so-called super apps by using its app review process because it was concerned that these programs would make consumers less likely to continue with iPhones.Additionally, it claims that Apple has hindered the ability of iPhones to be connected to competing smart watches and prevented banks and other financial institutions from using its tap-to-pay technology, which has allowed Apple to profit billions of dollars from the processing of Apple Pay transactions.
The complaint also centers on Apple’s handling of messages sent from competing phones, which it identifies with green bubbles and restricts access to other functions and videos. According to the report, Apple’s actions have generated “social stigma” that has aided the tech giant in keeping control of the market.Apple claimed that its consumers were devoted because they were content and that it was free to select its commercial partners in accordance with US law. It has used security and privacy concerns as justification for its regulations.Assuming the action would not succeed, the corporation declared that it would seek the court to dismiss it.
“We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it,” the business stated.
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