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Big news. Looks like the EU won't be alone in dismantling the walled garden.
More in depth here:
The Justice Department on Thursday announced a sweeping antitrust lawsuit against Apple, accusing the tech giant of engineering an illegal monopoly in smartphones that boxes out competitors, stifles innovation and keeps prices artificially high.
The lawsuit, filed in federal court in New Jersey, alleges that Apple has monopoly power in the smartphone market and leverages control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.”
“Apple has locked its consumers into the iPhone while locking its competitors out of the market,” said Deputy Attorney General Lisa Monaco. Stalling the advancement of the very market it revolutionized, she said, it has “smothered an entire industry.”
More in depth here:
US sues Apple for illegal monopoly over smartphones
The lawsuit seeks to upend a major part of Apple’s business.
www.theverge.com
The government points to several different ways that Apple has allegedly illegally maintained its monopoly:
- Disrupting “super apps” that encompass many different programs and could degrade “iOS stickiness” by making it easier for iPhone users to switch to competing devices
- Blocking cloud-streaming apps for things like video games that would lower the need for more expensive hardware
- Suppressing the quality of messaging between the iPhone and competing platforms like Android
- Limiting the functionality of third-party smartwatches with its iPhones and making it harder for Apple Watch users to switch from the iPhone due to compatibility issues
- Blocking third-party developers from creating competing digital wallets with tap-to-pay functionality for the iPhone
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