With the European Union, the US government accuses Apple of holding an illegal smartphone monopoly. A lawsuit filed by the Justice Department (DOJ), backed by 16 states, challenges Apple’s practices that lock down the iPhone ecosystem.
According to the feds, Apple stifles competition by restricting app functionality, preventing iPhones from communicating with Android devices, and delaying third-party smartwatches. Users are trapped in the iPhone world, inflating prices for consumers and developers.
All about the lawsuit
This lawsuit aims to disentangle these practices and promote an open mobile landscape. Essentially, they are trying to prevent Apple from restricting app distribution in a way that could lead users to switch platforms. The goal is to break Apple’s grip on the app market by preventing it from limiting functionality on competing devices.
Apple’s immense resources are overlooked in this David vs. Goliath battle, instead focusing on protecting competition and innovation. The action follows similar actions against Google and reflects a renewed focus on regulating tech giants. There has long been criticism of Apple’s control over the iOS marketplace, especially its app store fees. According to a 2020 Congressional report, Apple holds a monopoly on iOS app distribution.
A lawsuit like this is a significant step, especially since Europe has already begun to regulate Big Tech. This month will be crucial for the DOJ as it strives to create a more open mobile landscape, which may pave the way for similar regulations in the US.
