DOJ Files New Apple Antitrust Lawsuit, Alleging Monopoly Harmful to Consumers, Developers

By John Lopez

Mar 21, 2024 12:42 PM EDT

The DOJ has recently filed a new antitrust lawsuit against tech giant Apple, alleging that the company's practices in the smartphone market constitute a harmful monopoly. 

According to the lawsuit, Apple's control over its iPhone ecosystem has detrimental effects on consumers, developers, and competitors alike.

Attorney General Merrick Garland Makes Antitrust Announcement At Dept. Of Justice
WASHINGTON, DC - MARCH 21: U.S. Attorney General Merrick Garland speaks during a news conference at the Department of Justice Building on March 21, 2024 in Washington, DC. During the news conference Garland and DOJ officials announced the department would be taking action against Apple, claiming that the tech company has an illegal monopoly on smartphones, violating antitrust laws.
(Photo : Photo by Anna Moneymaker/Getty Images)

DOJ Sues Apple Over Antitrust Violations

The lawsuit, which was filed alongside 15 states, asserts that Apple's dominance in the smartphone market has resulted in inflated prices and restricted competition. It accuses the company of using its market power to extract higher fees from consumers, developers, content creators, and small businesses.

The 88-page lawsuit outlines allegations that Apple has actively suppressed competition by implementing mechanisms that hinder rival technologies. 

"The complaint describes how Apple's anti-competitive conduct discourages developers from offering new and innovative applications and makes it more difficult for consumers to switch to other smartphones," said in a statement.

For instance, the DOJ contends that Apple has made it difficult for competing messaging apps and smartwatches to operate smoothly on its devices. Additionally, the company's policies regarding streaming services for games have been accused of stifling competition.

"Consumers should not have to pay higher prices because companies violate the antitrust laws," said Attorney General Merrick B. Garland. 

Apple, however, has vehemently denied the allegations, stating that the lawsuit threatens its ability to innovate and compete in fiercely competitive markets. A spokesperson for the company emphasized that the lawsuit challenges the principles that set Apple products apart.

READ MORE: DOJ Plans To Sue Apple Over Alleged Antitrust Law Violation

Antitrust Lawsuits Against Apple

This legal action marks the latest development in antitrust probes and lawsuits targeting big tech companies. Notably, Apple's App Store business model has faced scrutiny in multiple jurisdictions, with regulators in Europe, Japan, and Korea imposing fines and regulatory measures.

The DOJ's lawsuit against Apple comes amid growing global scrutiny of the practices of major tech companies. The United States and the European Union have taken steps to address concerns regarding monopolistic behavior and anti-competitive practices in the technology sector.

In response to the lawsuit, U.S. Attorney General Merrick Garland emphasized the importance of holding companies accountable for anti-competitive conduct. He stated that consumers should not have to bear the burden of higher prices due to violations of antitrust laws.

Apple's shares dipped by over 4% following news of the lawsuit, indicating investor concern over the potential impact on the company's profitability and market dominance.

READ NEXT: Apple CEO Tim Cook Visits Shanghai as Pressure Mounts on China Sales

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