Biden administration sues Apple.

The US Department of Justice accused the technology giant of monopolistic practices in its iPhone business

President Joe Biden’s administration has filed a lawsuit against US technology giant Apple for allegedly building an anti-competitive product “trench” About its monopolistic iPhone ecosystem.

The US Department of Justice (DOJ) filed a lawsuit on Thursday in federal court in New Jersey, alleging that Apple used… ‘Exclusionary behavior is widespread’ To make it harder for Americans to switch smartphones and for companies to provide apps, products, and services to iPhone users. The federal government was joined by 16 state attorneys general in filing the civil lawsuit.

“Consumers should not have to pay higher prices because companies violate antitrust laws.” US Attorney Merrick Garland said in a statement. “We allege that Apple has maintained its monopoly power in the smartphone market not only by staying ahead of the competition on features, but by violating federal antitrust law. If left unchallenged, Apple will continue to consolidate its smartphone monopoly.” .

The European Union imposes fines on Apple worth $2 billion

The iPhone monopoly has driven Apple “Astrological evaluation” The lawsuit said the company’s market value of more than $2.6 trillion is second only to Microsoft’s $3.2 trillion, at the expense of consumers and other technology companies. The stock fell 4.1% after the Justice Department’s lawsuit was announced, wiping more than $100 billion off its market cap.

This case challenges the so-called Apple “walled garden” Business model, making the company’s products largely inaccessible to competitors. This comes just weeks after the European Union imposed a €1.84 billion ($2 billion) fine on Apple for violating the bloc’s competition laws. The company has allegedly blocked rival streaming providers, such as Spotify, from informing iPhone users of cheaper music subscription alternatives.

Apple has monopolized the smartphone application market by blocking advances from competitors. “By stifling these technologies, and many others, Apple is strengthening the moat around its smartphone monopoly, not by making its products more attractive to users, but by discouraging innovation that threatens Apple’s smartphone monopoly.” The lawsuit said.

The company denied the Justice Department’s allegations. The lawsuit can “It hinders our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect.” A company spokesperson told the media. “It would also set a dangerous precedent, enabling the government to take a strong hand in the design of human technology.”

If the lawsuit is successful, it could force Apple to make changes to some of its most profitable products, including the iPhone and Apple Watch. This may also result in the company having to sell some of its business to encourage more competition. The iPhone accounted for a 64% share of the smartphone market in the United States in the fourth quarter of last year, which far exceeds Samsung’s share of 18%, according to Counterpoint Research.

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