Apple Sued by U.S. Department of Justice, Says Lawsuit is 'Wrong'

[MacRumors]

The U.S. Department of Justice today announced it has filed an antitrust lawsuit against Apple. The lawsuit alleges that Apple illegally maintains a monopoly in the smartphone market with the iPhone and the device's locked-down ecosystem.

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In a statement shared with MacRumors, Apple said the lawsuit is "wrong on the facts and the law," and the company vowed to "vigorously defend" itself:

At Apple, we innovate every day to make technology people love—designing products that work seamlessly together, protect people's privacy and security, and create a magical experience for our users. This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people's technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.

The complaint was filed today in a U.S. District Court in New Jersey by the Justice Department and 16 other U.S. state and district attorneys general. Apple is accused of violating various U.S. federal and state antitrust laws, including the Sherman Act.

In its press release, the Justice Department highlighted some of the allegations:

- Blocking Innovative Super Apps. Apple has disrupted the growth of apps with broad functionality that would make it easier for consumers to switch between competing smartphone platforms.
- Suppressing Mobile Cloud Streaming Services. Apple has blocked the development of cloud-streaming apps and services that would allow consumers to enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware.
- Excluding Cross-Platform Messaging Apps. Apple has made the quality of cross-platform messaging worse, less innovative, and less secure for users so that its customers have to keep buying iPhones.
- Diminishing the Functionality of Non-Apple Smartwatches. Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones.
- Limiting Third Party Digital Wallets. Apple has prevented third-party apps from offering tap-to-pay functionality, inhibiting the creation of cross-platform third-party digital wallets.

Apple's anticompetitive conduct also affects "web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, location services, and more," according to the Justice Department.

Jonathan Kanter, Assistant Attorney General of the Justice Department's Antitrust Division:

For years, Apple responded to competitive threats by imposing a series of "Whac-A-Mole" contractual rules and restrictions that have allowed Apple to extract higher prices from consumers, impose higher fees on developers and creators, and to throttle competitive alternatives from rival technologies. Today's lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets.

The entire complaint spans 88 pages.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Sued by U.S. Department of Justice, Says Lawsuit is 'Wrong'

 

[vipergts2207]

 

[truthsteve]

Meanwhile, many developers are fine with 15%/30% cut and most customers are fine with a single App Store to find all of their apps.

As usual, gov trying to control someone else's success for no reason. Huge overstep.

 

[avkills]

Hinder them? Really? Opening the platform up isn't going to magically break how well all their devices work together. Total scapegoat argument.

The only argument that holds any weight is the privacy and security concerns.

 

[antiprotest]

Apple said the lawsuit is "wrong" and that it will "vigorously defend"

Is there a legal difference between defend and vigorously defend? Why do people always add vigorously? I assume no one wants to casually defend themselves? Or do they think this adds a note of indignation? If so, why always vigorously instead of some other word?

Edit: I don't understand why a few people "disagree" with this. It is a real question. There is nothing to disagree with. If you think I am ignorant, just answer the question.

Edit: Someone offered an answer: https://forums.macrumors.com/thread...s-department-of-justice.2422451/post-33026392

 

[rgeneral]

will this go to Supreme Court as well?

 

[DominikHoffmann]

I wonder, but Apple is being shaken down for by the Biden administration.

 

[surfzen21]

Governments manipulating stock prices.

I'd love to see all the decision makers at the EU and DOJ show their and their families holdings in Apple and its competing companies.

 

[TheColtr]

All Apple needs to do is allow iOS devices to be computers. Like the Mac, let me install software I want, even if Apple doesn’t like the content.

 

[William Gates]

There goes the Biden admin demonstrating again to the whole world they have no idea what US antitrust law is or how technology works. Apple has plenty of anti-competitive practices that need to be addressed, but this ain't it.

 

[antnythr]

I’m looking forward to seeing how this plays out.

I think Apple should be able to run their App Store how they want, but I also believe Apple shouldn’t have any ability to prevent me from installing applications from outside the App Store.

 

[I7guy]

Could take years to play out.

 

[dguisinger]

About time.... if Tim Cook had any sense he would have proactively done things to avoid the fights Apple is now in all over the world. But this is the same person who wasted billions on an electric car and left his company years if not a decade behind on AI.

 

[NMBob]

Governments manipulating stock prices.

I'd love to see all the decision makers at the EU and DOJ show their and their families holdings in Apple and its competing companies.

They could show us, but then they'd have to kill us.

 

[spazzcat]

Meanwhile, many developers are fine with 15%/30% cut and most customers are fine with a single App Store to find all of their apps.

As usual, gov trying to control someone else's success for no reason. Huge overstep.

I love having my tax dollars wasted on nonsense. At the same time, it will be fun to watch this blow up in the DOJ's face. Why spend money on things like better healthcare, feeding the homeless and better education ...

 

[alchemistmuffin]

The U.S. Department of Justice today filed an antitrust lawsuit against Apple, accusing the company of operating an illegal monopoly in the smartphone market, as reported by multiple news outlets.

If Steve Jobs was alive today, he would’ve used every single amount of his personal money to defend Apple and his name.

DOJ is doing the wrong thing. Suing Apple will destroy the US tech industry in the long run.

If Apple loses, Apple will likely shut down in retaliation. See how that will destroy US tech industry.

 

[spazzcat]

will this go to Supreme Court as well?

Most likely yes.

 

[transpo1]

Hinder them? Really? Opening the platform up isn't going to magically break how well all their devices work together. Total scapegoat argument.

The only argument that holds any weight is the privacy and security concerns.

Yes, it will— because people who don’t know any better will download apps or click on a link that installs something outside of the App Store and boom! Then they will complain about less security.

 

[I7guy]

Add another reason to the already large pile Biden has to go.

 

[Darren.h]

wow. 2024. the year of bad luck for Apple.

 

[transpo1]

If Steve Jobs was alive today, he would’ve used every single amount of his personal money to defend Apple and his name.

DOJ is doing the wrong thing. Suing Apple will destroy the US tech industry in the long run.

If Apple loses, Apple will likely shut down in retaliation. See how that will destroy US tech industry.

Well, I don’t think they’ll shut down but I agree with the rest of what you said. This is a case of the gov’t killing the goose that laid the golden egg…

 

[justiny]

There is almost nothing more cringe than listening to politicians and government officials try to talk about technology and it immediately becomes apparent they have no clue what they are talking about.

 

[twocents]

Ah American politics, the epitome of smoke and mirrors to convince the public that their government is working in their best interest and accountable to their hard-earned tax dollars 😂

 

[truthsteve]

Hinder them? Really?

Yes really. Had iOS/iPadOS used third party app stores, apps wouldn't have followed guidelines. guidelines that translated well to other platforms like tvOS/visionOS (ex: minimum 44pt x 44pt button sizes that ended up being comfortable enough for visionOS customers to tap using their eyes and hands)

 

[sw1tcher]

Meanwhile, many developers are fine with 15%/30% cut ....

Got something to back up this claim? I mean, you or someone must have surveyed every single developer to arrive at that conclusion, otherwise you're just pulling it out of your rear.