Technology
Thursday, March 21st, 2024 3:04 pm EDT
Key Points
- Department of Justice sues Apple over iPhone ecosystem monopoly, alleging harm to consumers, developers, and rival phone makers.
- Lawsuit claims Apple’s anti-competitive practices extend beyond iPhones and Apple Watch to include advertising, browser, FaceTime, and news offerings.
- Allegations include blocking cross-platform messaging apps, limiting third-party wallet and smartwatch compatibility, and disrupting non-App Store programs and cloud-streaming services.
The US Department of Justice (DOJ) filed a lawsuit against Apple on Thursday, accusing Apple of using anti-competitive practices to create a monopoly in the smartphone market. The DOJ claims that Apple’s practices have driven up prices for consumers and stifled innovation.
The lawsuit alleges that Apple has taken steps to restrict users from switching to other phone brands by making its messaging service iMessage less functional when used on non-Apple devices. Additionally, the DOJ says that Apple designed its Apple Watch to only work with iPhones and has blocked cloud gaming services on its App Store.
This lawsuit is the latest in a series of antitrust challenges that Apple has faced in recent years. In 2021, Apple mostly won a lawsuit against Epic Games, but the company did have to make some changes to its App Store policies. Apple is also currently facing scrutiny from the European Commission over its App Store practices.
The DOJ lawsuit could force Apple to make significant changes to its business model, potentially reducing its profits. Apple argues that the lawsuit will stifle innovation and make it harder for them to create the kind of technology that consumers expect.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/21/doj-sues-apple-over-iphone-monopoly.html
