Dept. of Justice files antitrust lawsuit against Apple
WASHINGTON (Gray DC) The Department of Justice, joined by 16 states, announced a sweeping antitrust lawsuit against Apple. The suit alleges the tech giant has monopoly power in the smartphone industry and wields that power to stifle innovation and box out its competition. Gray Television’s White House Correspondent – and lawyer - Jon Decker will examine the allegations contained in this wide-ranging lawsuit.
More than 65 percent of Americans have an iPhone. The Department of Justice alleges Apple has used that extraordinary market power to block innovative apps and make it more difficult for consumers to switch to a competing smart phone.
The DOJ and 16 states have sued Apple, alleging the tech giant has violated federal antitrust law by extracting more money from consumers, developers and content creators.
U.S. Attorney General Merrick Garland made a rare appearance in front of reporters.
“For consumers, that has meant fewer choices; higher prices and fees; lower quality smartphones, apps, and accessories; and less innovation from Appleand its competitors. For developers, that has meant being forced to play by rules that insulate Apple from competition.”
Apple has a market value of more than $3 trillion.
And Attorney General Merrick Garland said the DOJ’s wide-ranging lawsuit was necessary to prevent Apple from strengthening what he calls its illegal smartphone monopoly.
“Apple has maintained its power not because of its superiority, but because of its unlawful exclusionary behavior. Monopolies like Apple’s threaten the free and fair markets upon which our economy is based.”
Apple is also in the crosshairs of European regulators which earlier this month slapped the company with a $1.8 billion fine for stifling competition in music streaming through the iPhone.
The DOJ’s lawsuit could force Apple to make major changes in some of its most valuable businesses including its iPhone and the Apple Watch. Apple said in a statement that the lawsuit threatens the company’s innovation and its products.
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