The U.S. Department of Justice has filed a sweeping antitrust lawsuit against Apple, accusing the iPhone maker of being anti-competitive and creating a monopoly over the smartphone market.
The lawsuit, filed in federal court in New Jersey, alleges that Apple uses its control over the iPhone platform to “extract higher fees, thwart innovation” and “throttle” competition through its App Store. The government says Apple’s conduct “reverberates” across at least a half dozen industries, and that — unless stopped — the Cupertino, California-based tech giant will extend its monopoly outside of the smartphone market.
“This case is about freeing smartphone markets from Apple’s anticompetitive and exclusionary conduct and restoring competition to lower smartphone prices for consumers, reducing fees for developers, and preserving innovation for the future,” the Justice Department said in the complaint.
Apple stock was down almost 4% in Thursday morning trading.
This is a developing story and will be updated.