©Reuters. Apple (AAPL) is suing the US DOJ over monopoly claims over the iPhone
(Updated March 21, 2024 4:42 PM EDT)
Apple (NASDAQ:) shares closed 4% lower on Thursday after it was confirmed that the Department of Justice (DOJ) has officially sued the iPhone maker in an antitrust lawsuit for monopolizing smartphone markets.
The US Department of Justice and 17 states have filed an antitrust lawsuit against Apple, alleging that the company “has imposed restrictive rules to [the] app stores to obtain higher rates, thwart innovation and curb competition.”
Attorney General Merrick Garland said in a statement: “Consumers should not be forced to pay higher prices because companies violate antitrust laws.
According to him, “if left unchallenged, Apple will only continue to strengthen its monopoly on smartphones.”
Apple has become the latest major technology company to be sued by US regulators. The list already includes Meta Platforms, Google and Amazon.com.
The antitrust lawsuit accuses Apple of having an illegal monopoly on smartphones, which it says is sustained by imposing contractual restrictions and denying critical access to developers.
The antitrust lawsuit alleges that Apple blocks the growth of some apps, suppresses mobile cloud streaming services, excludes some messaging apps and diminishes the functionality of non-Apple smartwatches.
Apple said in a statement: “We believe this lawsuit is wrong in both fact and law, and we will vigorously defend ourselves.”
Analysts at Evercore ISI said the antitrust lawsuit is seen “more of a headline risk than a financial risk in the US and, unless we see new legislation passed, it is unlikely that Apple will be forced to significantly change the rate of the App Store or third-party app stores”. policies.”