Today, the DOJ (Department of Justice) has announced that they, joined by 16 other state and district attorneys, have filed a civil antitrust lawsuit against Apple, alleging that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from developers.

Justice Department Sues Apple for Monopolizing Smartphone Markets

🔗: https://t.co/sQuqVnTzaX pic.twitter.com/9ipWckqfvc

— U.S. Department of Justice (@TheJusticeDept) March 21, 2024

According to the lawsuit, Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers. The lawsuit also says that Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.

The Justice Department and state Attorneys General are seeking relief to restore competition to these vital markets on behalf of the American public.

“Consumers should not have to pay higher prices because companies violate the antitrust laws,” said Attorney General Merrick B. Garland. “We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly. The Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices. That is the Justice Department’s legal obligation and what the American people expect and deserve.”

According to the complaint, Apple has monopoly power in the smartphone and performance smartphone markets and uses its control l over the iPhone to engage in a broad, sustained, and illegal course of conduct. The DOJ and the other state and district Attorneys General say that its designed in a way to maintain Apple’s monopoly power while getting as much money as possible. The complaint says that this anticompetitive behavior has taken several forms including blocking innovative super apps, suppressing mobile cloud streaming services, excluding cross-platform messaging apps, diminishing the functionality of non-Apple smartwatches, and limiting third-party digital wallets.

“No matter how powerful, no matter how prominent, no matter how popular — no company is above the law,” said Deputy Attorney General Lisa Monaco. “Through today’s action, we reaffirm our unwavering commitment to that principle.”

The DOJ and state and district Attorneys General say that Apple’s conduct extends beyond these examples, affecting web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, location services, and more.

“When corporations engage in anticompetitive conduct, the American people and our economy suffer,” said Acting Associate Attorney General Benjamin C. Mizer. “Today’s action against Apple sends a strong signal to those seeking to box out competitors and stifle innovation — that the Justice Department is committed to using every tool available to advance economic justice and root out anticompetitive practices, wherever they arise.”

“For years, Apple responded to competitive threats by imposing a series of “Whac-A-Mole” contractual rules and restrictions that have allowed Apple to extract higher prices from consumers, impose higher fees on developers and creators, and to throttle competitive alternatives from rival technologies,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets.”

The complaint says that Apple has every incentive to extend and expand its course of conduct to acquire and maintain power over next-frontier devices and technologies.

“At Apple, we innovate every day to make technology people love—designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users,” Apple said in a statement to IGN. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”