The Biden administration launched its first major antitrust lawsuit against Apple on Thursday, accusing the technology giant of monopolizing markets for smartphones.
Apple is among several key technology companies that have been facing lawsuits from U.S. regulators. This includes Google, Meta Platforms, and Amazon.com, under both the former administration of President Donald Trump and the current administration of President Joe Biden.
Attorney General Merrick Garland stated that customers should not bear the burden of increased prices due to violations of antitrust laws by companies. Allowing Apple to maintain its monopoly in the smartphone market without opposition will only serve to reinforce its dominance.
According to the Justice Department, Apple exerts its market dominance to extract higher profits from consumers, developers, creators, artists, publishers, and small businesses and merchants.
The lawsuit alleges that Apple has an unfair monopoly on smartphones by placing restrictive contracts and limiting developer access to critical services.
Apple has previously faced antitrust investigations and mandates in Europe, Japan, and Korea. Additionally, they have been met with lawsuits from competitors such as Epic Games.
The App Store, a successful source of revenue for Apple, involves developers paying a commission of 30%. It recently faced a legal battle with Epic under U.S. law, ultimately resulting in the ruling that Apple did not break antitrust laws. However, a judge did require Apple to allow for direct payments to apps without utilizing their in-app payment commission.
Recently, a new law in Europe known as the Digital Markets Act has disrupted Apple’s App Store business model. This law, which took effect at the beginning of the month, has resulted in changes to how Apple operates. Their latest plans include allowing developers to have their own app stores without paying any commissions. However, competitors like Spotify and Epic claim that Apple is still creating barriers for alternative app stores.
Due to the decisions made regarding Apple’s App Store, the Justice Department was compelled to examine other actions taken by Apple that could potentially prompt a complaint, such as their policies for third-party companies accessing the iPhone’s chips and sensors.
Device manufacturers like Tile Inc have voiced concerns over Apple’s limitations on using iPhone sensors for creating rival products that are granted more extensive access.
Apple started offering AirTags a few years after Tile had already been selling a comparable item, which can be attached to objects such as car keys to aid users in locating them if they become missing.
In the same way, Apple has limited entry to a specific chip on the iPhone which permits contactless transactions. Users can only add credit cards to their iPhone through Apple’s exclusive Apple Pay system.
In addition to facing backlash, Apple has received criticism for its iMessage feature, which is limited to Apple products.
Apple has continuously asserted that it limits the availability of certain user information and certain features of the iPhone to third-party developers in order to protect privacy and enhance security.
Source: voanews.com