The United States Department of Justice, along with the attorneys general of 16 states and the District of Columbia, filed a landmark antitrust lawsuit against Apple on Thursday alleging that the company has unlawfully monopolized the smartphone market in the United States. Breitbart News has found five key allegations exposing Apple’s monopoly power.
The DOJ’s 88-page complaint filed in the U.S. District Court for the District of New Jersey argues that Apple has engaged in a persistent pattern of anticompetitive conduct to maintain its dominance in the smartphone market, particularly in the premium segment known as “performance smartphones.” The lawsuit contends that Apple’s actions have resulted in higher prices, reduced innovation, and limited consumer choice.
It’s All About the iPhone
Although Apple is a vast company with a wide range of products and services, the lawsuit is entirely focused on the iPhone and its associated App Store. Apple’s practices have been under scrutiny starting during the Trump Administration in 2019, but this case was on hold during Epic Games’ civil lawsuit against Apple, which concluded last year.
The very beginning of the complaint sets the tone, with the DOJ writing, “Over many years, Apple has repeatedly responded to competitive threats by making it harder or more expensive for its users and developers to leave than by making it more attractive for them to stay.” This behavior, in the eyes of the government, “locked in users and developers while protecting its profits.”
Apple CEO Tim Cook poses for a goofy selfie ( Justin Sullivan/Getty)
Apps and “Super Apps”
The complaint highlights several key areas where Apple has allegedly used its control over app distribution and creation to stifle competition and reinforce its monopoly power, including the “apple tax” that developers must pay via the App Store. But the lawsuit also alleges that the iPhone giant suppresses the development of “super apps,” programs that provide multiple services at once typically including a financial aspect, because Apple sees such apps as a threat to its phone business, and blocking cloud streaming apps, particularly in gaming, that could deliver high-quality experiences on less expensive hardware, thus reducing the need for costly iPhones.
The Dreaded “Green Bubble” when Texting
The lawsuit also claims that Apple has been degrading the functionality of third-party messaging apps to impede cross-platform communication and reinforce the “green bubble” stigma associated with non-iPhone users. As Breitbart News previously reported, Google has called Apple’s stance on texting “bullying.”
iMessage should not benefit from bullying. Texting should bring us together, and the solution exists. Let’s fix this as one industry. 💚💙 https://t.co/18k8RNGQw4
— Android (@Android) January 8, 2022
Smartwatch Compatability
The lawsuit claims Tim Cook’s company further protects its iPhone market by limiting the capabilities of third-party smartwatches to prevent them from becoming viable alternatives to the Apple Watch. The Apple Watch then acts as a barrier to switching from the iPhone to other smartphones. The DOJ also alleges that Apple restricts access to Near Field Communication (NFC) technology, preventing the development of competing digital wallets with tap-to-pay functionality.
CarPlay Taking over the Automobile Industry
According to the lawsuit, Apple also plans to introduce a more immersive version of CarPlay, which would display key vehicle functions like speed and HVAC, are evidence of the company’s illegal monopoly over smartphones. The DOJ states, “By applying the same playbook of restrictions to CarPlay, Apple further locks-in the power of the iPhone by preventing the development of other disintermediating technologies that interoperate with the phone but reside off device.”
The plaintiffs allege that these practices, among others, have allowed Apple to maintain a market share exceeding 65 percent in the U.S. smartphone market and 70 percent in the performance smartphone segment. They argue that Apple’s conduct has harmed consumers by limiting innovation, reducing choice, and enabling the company to charge higher prices and extract fees from developers and financial institutions.
In response to the lawsuit, Apple spokesperson Fred Sainz stated, “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets.” The company maintains that the legal action sets “a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”
Read the full lawsuit here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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