Lawsuit Against Apple: The US Claims The Tech Company Has Unfairly Controlled The Smartphone Market.

The US government has launched a major lawsuit against Apple, accusing the company of unfairly dominating the smartphone market and squashing its competitors.

In this lawsuit, the justice department claims that Apple misused its power over the iPhone’s app store to keep customers and app makers stuck with them.

The government says Apple took illegal actions to block apps it viewed as competitive threats and to make competing products seem less attractive.

Apple has promised to fight these accusations strongly and denies doing anything wrong.

This lawsuit, joined by the attorneys general of 16 states and filed in a New Jersey federal court, is one of the biggest legal challenges Apple has faced. It’s been dealing with increasing scrutiny over its business practices lately.

The lawsuit accuses Apple of using confusing rules and limiting access to its technology to increase its own profits, make things more expensive for customers, and hold back new ideas.

“Apple has kept its monopoly in the smartphone market not by being the best in competition but by breaking federal anti-monopoly laws,” said Attorney General Merrick Garland, announcing the lawsuit.

The lawsuit, which is 88 pages long, points to five main ways Apple allegedly misused its power.

For instance, the US says Apple stopped the development of certain apps because it didn’t want customers to have reasons to leave iPhones. It also accuses Apple of making it hard for iPhones to work with competitors’ smartwatches and preventing financial companies from using its payment technology, which lets Apple make billions from Apple Pay fees.

The lawsuit also criticizes how Apple handles messages from non-iPhone phones, saying it creates a “social stigma” that helps keep Apple in control of the market.

Apple argues that its customers stay because they’re satisfied and that it has the right to choose who it does business with, citing privacy and security reasons for its rules.

The company plans to ask the court to throw out the lawsuit, which it believes will not succeed.

“This lawsuit misunderstands the facts and the law, and we will defend against it strongly,” Apple stated.

The outcome of the case may depend on whether Apple’s actions can be justified as legitimate business practices or if they’re simply meant to reduce competition and maintain its monopoly.

This is the third time since 2009 that Apple has faced a legal challenge from the US government, and it’s the first anti-monopoly case against Apple by President Joe Biden’s administration.

Winning the case could mean Apple would have to change its contracts and practices or possibly be broken up.

Apple’s stock dropped over 4% as the market reacted to the news of the lawsuit.

Any changes from this lawsuit would likely take years as the case goes through the legal system.

“This case is a major deal,” said a Vanderbilt University professor, noting it’s part of a series of lawsuits against big tech companies like Google, Meta, and Amazon. It’s aimed at making smartphone technology and software more open to consumers and businesses.

Just last month, the EU fined Apple for breaking competition laws related to music streaming, a decision Apple plans to appeal.

A professor from Case Western Reserve University in Ohio said this new US lawsuit is more comprehensive than those in the EU and targets Apple’s unfair practices at their core.

“Apple is blocking competitors from its ecosystem, which harms startups, stakeholders, customers, and, in my view, its shareholders,” she noted.

According to the justice department, Apple controls over 70% of the US smartphone market and over 65% of the broader market.

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