The Justice Department and 16 state and district attorneys general filed an antitrust lawsuit against Apple on Thursday, accusing the tech giant of creating an illegal monopoly over smartphones in the United States.
The lawsuit, filed on Thursday in federal court in New Jersey, alleges that the company’s so-called “walled garden” ecosystem — which allows Apple to maintain total control over its hardware and software — creates a monopoly by stifling competition. It accuses the company of using control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.”
“Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the complaint reads, charging that the company uses “a series of shapeshifting rules and restrictions in its App Store guidelines and developer agreements that would allow Apple to extract higher fees, thwart innovation, offer a less secure or degraded user experience, and throttle competitive alternatives.”
“We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law,” Attorney General Merrick Garland said in a statement. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
In a statement, the company said it disagrees with the claims made in the lawsuit and vowed to “vigorously” fight it.
“This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” the company’s statement reads. “We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”
States joining the Justice Department’s lawsuit include New York, California, Maine and Wisconsin, as well as the District of Columbia.
This is a developing story. Check back later for further updates.
Justin Tasolides
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