US,16 other states sue Apple over alleged anti-competitive practices

The US Department of Justice, with 16 US states, has launched a lawsuit against tech behemoth Apple, alleging anti-competitive activities aimed at maintaining its dominant position in the smartphone industry.

The case, filed on Thursday, accuses Apple of constructing barriers to discourage consumers from moving to rival devices, with a special focus on its dominance in the luxury smartphone category. The business is accused of imposing barriers for consumers looking for alternatives, such as contractual limits and tough App Store vetting procedures.

The lawsuit claims that Apple’s activities impede competition by limiting innovation and consumer choice. It claims that, rather than responding to competition threats with cheaper costs or better monetization for developers, Apple uses strategies to demand additional fees, hinder innovation, and damage user experience.

The complainants say that Apple’s conduct has a far-reaching impact on businesses such as finance, fitness, gaming, and entertainment, in addition to the smartphone market. They warn that if Apple’s monopolistic behaviours are not addressed, they may spread to other industries such as automobile, content development, and financial services.

The action seeks to rectify Apple’s anticompetitive behaviour by lowering smartphone pricing, reducing developer fees, and promoting innovation. The DOJ is joined in the action by 16 US states, including New Jersey, California, Michigan, New York, and the District of Columbia, represented by their Attorneys General.

This legal action highlights the increased scrutiny of big internet corporations’ market dominance and its influence on competition and customer choice, with possible implications for Apple and the broader technology industry.