Justice Dept. Bites Apple
U.S. says Apple has an illegal stranglehold on the mobile phone market.
This story is going to build over the next hours and days, and I will stay on top of it. For the moment, you have this ringside seat for what could become one of the all-time anti-trust battles.
WASHINGTON (AP) — 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 and stifles innovation.
The lawsuit, filed in federal court in New Jersey, alleges that Apple has monopoly power in the smartphone market and uses its control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.”
The lawsuit — which was also filed with 16 state attorneys general — is the latest example of the Justice Department’s approach to aggressive enforcement of federal antitrust law that officials say is aimed at ensuring a fair and competitive market, even as it has lost some significant anticompetition cases.
Apple called the lawsuit “wrong on the facts and the law” and said it “will vigorously defend against it.” (AP link)
Here is the first shot in this developing battle between Apple and the U.S. government
President Joe Biden has called for the Justice Department and the Federal Trade Commission to vigorously enforce antitrust statutes. The increased policing of corporate mergers and business deals has been met with resistance from some business leaders who have said the Democratic administration is overreaching, but it’s been lauded by others as long overdue. (AP link)
Here are some early snippets from news outlets.
(Yahoo News( Apple joins a list of major tech companies sued by U.S. regulators, including Alphabet’s Google, Meta Platforms and Amazon.com across the administrations of both former President Donald Trump and President Joe Biden. (Yahoo link)
(Yahoo News( In a statement, Apple said the lawsuit “threatens who we are” and that it would “vigorously defend against it”.
“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,” Apple said. “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. (Yahoo link)
Here are some of the angles to this story that I will be reporting on in the next days and weeks.
-How will politicians line up; who will climb into this cage fight or sit a few rows back?
-How might it affect your access to mobile phone technology?
-Does the general public care whether their iPhone maker might have a monopoly in the market?
-Will this lawsuit against a mega giant, during hard times for working class America, affect how people vote in November?
Here’s your chance to get out in front with your own insights on any of these questions and more. I look forward to your insights.
Personal note: Comment, don’t allow pseudo experts and influencers to have their own monopoly.