The U.S. Department of Justice announced on Thursday that it has filed an antitrust lawsuit against Apple, alleging that Apple has an illegal monopoly in the smartphone market with the iPhone and the device's closed ecosystem.
Now the Cupertino-based company has spoken out. In a statement released to US media , Apple said the lawsuit is "factually and legally incorrect" and promised to "defend itself vigorously." It reads:
At Apple, we innovate every day to create technology people love. We build products that work seamlessly together, that protect people's privacy and security, and that deliver magical experiences for our users. This lawsuit threatens who we are and the principles that set Apple products apart in a highly competitive marketplace. If successful, it would prevent us from building the kind of technology people expect from Apple—where hardware, software, and services work together. It would also set a dangerous precedent of allowing the government to influence people's technology. We believe this lawsuit is both factually and legally wrong, and we will vigorously defend against it.
The lawsuit, filed Thursday by the Department of Justice and 16 other U.S. state and district attorneys general, alleges that Apple violated various federal and state antitrust laws, including the Sherman Act.
US Department of Justice sues Apple
In its press release, the Ministry of Justice highlights some of the allegations:
- Blocking innovative super apps. Apple has hampered the growth of feature-rich apps that would make it easier for consumers to switch between competing smartphone platforms.
- Suppression of mobile cloud streaming services. Apple has blocked the development of cloud streaming apps and services that would allow consumers to enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware.
- Exclusion of cross-platform messaging apps. Apple has degraded the quality of cross-platform messaging apps, making them less innovative and less secure for users, so customers have to continue buying iPhones.
- Limiting the functionality of third-party smartwatches. Apple has limited the functionality of third-party smartwatches, so users who buy the Apple Watch will face significant costs if they do not continue to buy iPhones.
- Restricting third-party digital wallets. Apple has blocked third-party apps from offering tap-to-pay functionality, thereby preventing the development of third-party cross-platform digital wallets.
Apple's anticompetitive behavior also affects "web browsers, video communications, news subscriptions, entertainment, automotive services, advertising, location services, and more," according to the Justice Department. Jonathan Kanter, Assistant Attorney General of the Justice Department's Antitrust Division, stated:
For years, Apple has responded to competitive threats with a series of "Whac-A-Mole" contract rules and restrictions that have allowed Apple to charge consumers higher prices, impose higher fees on developers and creators, and stifle competing alternatives from rival technologies. Today's lawsuit seeks to hold Apple accountable and ensure that the company cannot use the same, unlawful practices in other major markets.
The entire complaint is 88 pages long, so there is a lot of information to discover. We will of course continue to follow the whole thing and report on it. (Photo by perhapzz / Bigstockphoto)
