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22 May, 2024
 
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US Justice Department sues Apple for its smartphone monopoly

Allegations of illegal practices spark legal battle, threatening Apple's tight grip on the market

Source: AP

The Justice Department has filed a wide-ranging antitrust lawsuit against tech giant Apple, alleging the company has established an illegal monopoly in the smartphone market, stifling competition and hindering innovation. Filed in federal court in New Jersey, the lawsuit accuses Apple of leveraging its control over the iPhone to engage in anticompetitive practices.

Joined by 16 state attorneys general, the lawsuit represents the latest effort in the government's push to enforce antitrust laws rigorously. President Joe Biden has urged the Justice Department and Federal Trade Commission to crack down on anticompetitive behavior in the corporate sector.

At the heart of the case is Apple's tightly controlled ecosystem, often referred to as a "walled garden," which encompasses products like the iPhone, iPad, Mac, and Apple Watch. This ecosystem, while acclaimed for its seamless integration, has raised concerns about monopolistic practices, particularly regarding access to the iconic Birkin handbag.

Apple has vehemently denied the allegations, stating that the lawsuit is based on erroneous claims and threatens the company's ability to innovate and deliver high-quality technology products.

The lawsuit marks a significant escalation in the government's efforts to rein in Apple's dominance, following similar actions against other tech giants like Google and Amazon. Apple's business practices have also come under scrutiny in other legal battles, including a high-profile dispute with Epic Games over the operation of the App Store.

Despite Apple's protests, regulators remain steadfast in their pursuit of fair competition in the marketplace. With mounting pressure from both domestic and international authorities, Apple faces the prospect of significant legal challenges and potential fines in the future.

TAGS
Cyprus  |  business  |  monopoly

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