Justice Department files antitrust lawsuit over Apple’s notorious “walled gardens”

The U.S. Department of Justice and more than a dozen states have filed suit against Apple in federal court, accusing the company of violating antitrust laws by preventing competitors from accessing its hardware and software products. Apple’s often-called “walled garden” approach to business makes it difficult for rivals to compete and for customers to switch to other companies’ products. The lawsuit comes after the European Commission fined Apple 1.8 billion euros ($1.95 billion). The committee concluded that Apple prevents music streaming developers from “notifying iOS users of available alternative and cheaper music subscription services” outside of the App Store.

“Apple undermines apps, products and services that would otherwise reduce users’ reliance on iPhones,” Attorney General Merrick Garland wrote in a press release issued by CNN. “Apple uses its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses and merchants alike.”

The indictment alleges that Apple illegally monopolizes the market for software applications, and the Justice Department said the company used its control of iOS to prevent the public from using innovative applications and cloud streaming services. The lawsuit also alleges that Apple has made it harder for Android messages to display on iPhones, hindered rival payment platforms and limited how rival smartphones can be integrated with iOS devices.

“By stifling these and many other technologies, Apple has strengthened the moat of its smartphone monopoly, not by making its products more attractive to users, but by blocking innovation that would threaten Apple’s smartphone monopoly,” the complaint reads. .”

Apple issued a statement about the lawsuit, suggesting it would hinder its ability to produce the wide range of electronic products and software that have made it one of the most valuable companies in the world. The company also said the lawsuit, if successful, would “set a dangerous precedent that would allow governments to take drastic measures when designing human technology.”

New York Times It was first reported that the U.S. Department of Justice is apparently close to concluding its investigation into the company and may file a “comprehensive antitrust lawsuit” against Apple in January. While the department initially focused on the company’s tactics to protect iPhone dominance, it has reportedly expanded its investigation to include other aspects of Apple’s business.according to era’, The Justice Department also investigated how the Apple Watch was more deeply integrated with the iPhone than rival wearables, and how rival operating systems were unable to access the company’s iMessage service.

The lawsuit against Apple is just the latest evidence of increased government scrutiny of the tech industry’s biggest players. The Justice Department has previously accused Google of maintaining an unfair monopoly on search and search-related advertising, and also filed a separate antitrust lawsuit accusing the company of illegally monopolizing the digital advertising market. At the same time, the Federal Trade Commission filed an antitrust lawsuit against Amazon, accusing it of engaging in certain monopolistic practices, including prohibiting merchants from offering goods at lower prices on other platforms. The commission and more than 40 U.S. states also sued Meta in 2020, saying it acquired former rivals Instagram and WhatsApp to suppress competition.