US sues Apple over alleged monopoly in smartphone market

WEB DESK: The Joe Biden administration, in conjunction with several states, has initiated an antitrust lawsuit against the tech giant Apple, as reported by US media on Thursday.

This legal action comes amid mounting criticism of Apple’s business practices aimed at stifling competition.

In a press release, the Department of Justice highlighted concerns that Apple’s actions undermine the development and availability of alternative apps, products, and services that could reduce users’ reliance on the iPhone.

Specifically, it accused Apple of leveraging its monopoly power to extract higher fees from consumers, developers, content creators, artists, publishers, small businesses, and merchants.

Apple has been under scrutiny for several years over its management of the App Store, particularly its control over third-party app interactions with Apple’s ecosystem.

Critics argue that Apple’s practices contribute to a digital divide, exemplified by its differentiation of Android messages in green, despite purported agreements to enhance quality standards.

Furthermore, Apple’s restrictions on third-party app access to its hardware, limiting entry solely to its own products, have drawn criticism.

The European Union has already taken regulatory action, compelling Apple to grant access to its iPhone’s tap-to-pay hardware chip, thereby allowing competing digital wallets to operate.

However, this directive applies exclusively within the EU.

The current lawsuit aims to address various practices deemed anticompetitive by scrutinising Apple’s conduct comprehensively.

Notably, this legal action singles out Apple as the sole major company facing antitrust allegations from the US government.

A 2020 report by the US House highlighted the dominant market positions held by Apple, Meta (formerly Facebook), Google, and Amazon, characterising them as wielding “monopoly power.”