The U.S. Department of Justice (DOJ) filed a sweeping antitrust lawsuit against Apple on Thursday, accusing the iPhone maker of creating a monopoly over the smartphone market and engaging in anti-competitive practices.
The lawsuit, filed in federal court in New Jersey by the DOJ and 16 state attorneys general, claims Apple uses its control over the iPhone platform to “extract higher fees, thwart innovation,” and “throttle” competition through its App Store. It also repeats familiar claims that Apple’s so-called “walled garden” has made it more difficult for consumers to switch to competing products.
“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.”
Apple has refused to support limited third-party digital wallets, non-Apple smartwatches, and cross-platform messaging apps, while blocking mobile cloud streaming services and “Super Apps,” according to the DOJ’s lawsuit. The Justice Department also cited Apple’s other products and services, including its advertising, news subscription, FaceTime and CarPlay services.
🎧 On our podcast episode, Superapps: There can be only one, Quartz’s Ananya Bhattacharya asks why the dream of building a superapp in the West is so persistent?
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