(RepublicanNews.org) – Technology company Apple faces an antitrust lawsuit headed up by the Department of Justice (DOJ) and a number of state attorneys general, which it says it will “vigorously defend” itself against. The lawsuit alleges that Apple has created an illegal monopoly by using a multitude of tactics to make it harder for customers to switch between smartphone platforms.
Apple stands accused of relying on its ability to institute “shapeshifting rules” for its App Store that allow the technology giant to command higher fees – it currently takes 30% in commission from the majority of sales in its App Store – all while preventing other companies from creating innovative apps that would allow for easier movement between platforms.
The DOJ lawsuit suggests that Apple should use other methods to beat off competition, such as offering more competitive pricing or creating more effective ways for developers to generate income. The lawsuit also warns that if Apple is allowed to continue with its allegedly unfair tactics, then it would soon be able to expand into other industries and create a stranglehold in other sectors of the market too, such as the automotive and financial services sectors.
This would not be the first time that Apple has been taken to court over alleged improper practices, with the DOJ having already sued the company twice for alleged antitrust violations within the last 14 years, as well as a group of app developers having reached a settlement with Apple in 2021 alleged antitrust practices. In the 2021 case, Apple agreed to pay $100 million to developers who claimed that restrictive App Store rules prevented them from speaking to their customers directly.
Apple, having already tried unsuccessfully to head off the lawsuit by meeting with DOJ officials in February, has promised to fight the case. It released a statement warning that this lawsuit could set a precedent in which the government is allowed a “heavy hand” in the technology market and would be a detriment to consumers. Apple argued that the case threatens its very essence as a company that aims to “create a magical experience” for its customers.
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