The United States Department of Justice (DOJ) has filed a lawsuit against Apple, alleging that the tech giant has unlawfully monopolised the smartphone market. According to the department, the company has exploited its dominant position to keep customers locked into its ecosystem, leading to higher prices and preventing competition.
The lawsuit, joined by 16 state and district attorneys, accuses Apple of imposing unfair contractual restrictions on developers, withholding critical functionalities to hinder competition, and limiting the compatibility of third-party smartwatches and digital wallets on its iPhones. One of the focal points of the lawsuit is the company’s alleged obstruction of “super apps,” which offer a range of services within a single platform.
Apple defends its actions, stating that it deliberately restricts these apps to maintain the loyalty of iOS users. Additionally, the tech giant is accused of impeding the availability of cloud streaming apps, such as gaming platforms, through unreasonable submission requirements.
DOJ antitrust division chief Jonathan Kanter criticises Apple’s approach, describing it as a game of “Whac-A-Mole,” where Apple responds to competitive threats by imposing stringent rules. The department seeks intervention from the US District Court for the District of New Jersey to prevent Apple from using its control over app distribution to undermine cross-platform technologies and to prohibit the use of private APIs to hinder competing technologies.
In response, Apple spokesperson Fred Sainz asserts that the lawsuit threatens the company’s core principles and its ability to innovate, and argues that it would also set a dangerous precedent which would allow government intervention in technology design. He added that Apple pledges to defend itself against the allegations, maintaining that the lawsuit is unfounded both in terms of facts and legal grounds.
