Justice Department sues Apple, claims company holds iPhone monopoly

The Justice Department announced Thursday, March 21, that it has filed a significant antitrust lawsuit against Apple Inc., accusing the technology behemoth of illegal anti-competitive practices aimed at maintaining its smartphone market monopoly and inflating profits. According to the lawsuit, Apple is alleged to have manipulated application development rules and features of its iPhones — including iMessage and Apple Wallet — to suppress competition and elevate pricing.

Attorney General Merrick Garland highlighted that Apple’s conduct not only contravened federal antitrust laws but also unjustly burdened consumers with higher costs.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

In a detailed accusation contained within an 88-page complaint, the government criticizes Apple’s imposition of restrictions on multifunctional “super apps,” its manipulation of messaging functionalities between Apple and non-Apple devices, and its monopolization of tap-to-pay features exclusively for Apple Wallet.

“Our case focuses on Apple’s core monopoly, which is the iPhone,” Assistant Attorney General Jonathan S. Kanter said. “We have focused on a pattern of conduct over a decade that Apple has engaged in order to reinforce its monopoly power by excluding rivals by excluding technologies by stifling innovations that would threaten Apple’s stranglehold on its monopoly power.”

The lawsuit, joined by 15 states and the District of Columbia, seeks judicial intervention to prohibit Apple from continuing its alleged anti-competitive activities and to mandate actions necessary to restore competitive conditions in the markets affected by Apple’s purported unlawful conduct.

Responding to the allegations, Apple defended its business practices, arguing that the lawsuit fundamentally misunderstands the nature of its operations and threatens the company’s ability to produce highly integrated technology products.

This legal challenge is part of a broader scrutiny of major tech companies by the Justice Department’s antitrust division, which has previously targeted Google with lawsuits alleging monopolistic business practices during both the Trump and Biden administrations.