As part of the government’s crackdown on Big Tech, the US Department of Justice and 15 states sued Apple AAPL.O on Thursday, claiming the iPhone manufacturer monopolized the smartphone industry, damaged smaller competitors, and raised prices.
Apple has joined rivals that have been sued by authorities, such as Amazon.com AMZN.O, Meta Platforms META.O, Alphabet’s GOOGL.O Google, and both past presidents Donald Trump and Joe Biden’s administrations.
Lawyer General Merrick Garland stated in a statement, “Consumers should not have to pay higher prices because companies violate the antitrust laws.” “Apple’s monopoly on smartphones will only grow stronger if it is not challenged.”
According to the Justice Department, Apple outperforms all other companies in the sector in terms of earnings, charging up to $1,599 for an iPhone. Additionally, officials said that Apple levies hidden fees on a range of business partners, including credit card firms, software developers, and even competitors like Google, which ultimately raises consumer costs and boosts Apple’s earnings.
Apple’s business strategy, which dates back to its era as a minor participant in the personal computer industry, has always involved charging consumers more for technological items in which Apple controls almost every aspect of how the product functions and is used.
Apple, whose market worth is $2.7 trillion, is being forced by the Justice Department to give customers greater options over how applications may interact with the hardware that it manufactures in an effort to undo that business model. The price of Apple shares had dropped by 3.6 percent.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.