The US Department of Justice has officially filed a lawsuit against Apple on Thursday March 21, 2024. This concernsaccusations about potential anti-competitive practicesfrom the firm to the apple.Google also faced itlast year and got away with a $700 million fine, but it could be more complicated for Cupertino.
Apple is used to receiving this type of complaint, but not from the justice department on which its headquarters depends. This is the third time since 2009 that the department has attacked Apple, and this investigation could,in the same way as the DMAof the European Union, havemany consequences for the Apple ecosystem.
“Apple is no longer revolutionizing the smartphone market »
According to Deputy Attorney General Lisa Monaco, “Apple has no longer revolutionized the smartphone market, but has stopped its evolution». Thetrialof 88 pages indicates:
«Apple wields its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others»
In the lawsuit, Apple is accused of:
- block cloud streaming services;
- prevent the development of “super apps”;
- maintain iMessage as an iPhone exclusive;
- limit the functionality of third-party smartwatches;
- Restrict access to digital wallets in iOS.
Justice points the finger at the price of iPhone Pro Max
Attorney General Merrick Garland said in a statement on the matter that “Consumers shouldn't have to pay higher prices because companies violate antitrust laws". Adding that “If nothing is contested, Apple will only strengthen its monopoly on smartphones.»
The American justice also mentioned in its trial the price that an iPhone could cost (up to 1599 dollars in the United States), andaccuses the company of making higher profits than other smartphone makers.
Is Apple's identity threatened?
Apple told MacRumors about this:
“At Apple, we innovate every day to make people love technology: by designing products that work together seamlessly, protect people's privacy and security, and create a magical experience for our users. This lawsuit threatens who we are and the principles that distinguish Apple products in fiercely competitive markets. If successful, it would hamper our ability to create the kind of technology people expect from Apple, where hardware, software and services intersect. It would also set a dangerous precedent, allowing the government to take a heavy hand in the design of popular technology. We believe this lawsuit is erroneous on the facts and the law, and we will vigorously defend ourselves against it.”
Given the posture, tone, and comments made by the court officials in charge of this case, we imagine that this will lead to financial sanctions for Apple, but not only that. We also think that the Apple firm will undoubtedly have to comply with the future laws on digital markets in the United States (AICOA), inspired by the DMA, and which are currently under study.
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By : Keleops AG
