US sues Apple for monopolising smartphone market using iPhones

The United States Department of Justice has filed a lawsuit against Apple for operating an illegal monopoly in the smartphone market. The Californian giant is accused of practicing a list of dominating practices, including suppressing the quality of messaging between iPhone and Android, blocking third-party cloud streaming services, and prohibiting third-party developers from making digital wallets with NFC functionality.

US Justice Department accuses Apple of being an illegal monopoly

According to a press release by the US’ DOJ, over 16 state and district attorneys general filed an antitrust lawsuit against Apple for its monopolization in the smartphone market in violation of Section 2 of the Sherman Act.

Here are some of the accusations of the DOJ.

— Apple is said to be undermining apps and services that would promote interoperability.

— DOJ claims that Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.

“We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly,” said Attorney General Merrick B. Garland.

The DOJ believes that Apple follows its anticompetitive course of conduct in the following forms.

Blocking Innovative Super Apps – As per the Justice Department, Apple has disrupted the growth of apps that offer broad functionality such as making a switch from an iPhone or other Apple devices to a competing device easier.

Suppressing Mobile Cloud Streaming Services – Apple is said to have blocked the development of cloud-streaming apps and services that let consumers enjoy high-quality video games and other cloud-based applications without having to pay for expensive smartphone hardware. Here’s DOJ’s probably talking about prohibiting Xbox cloud-streaming services on iPhones. However, back in January 2023, Apple announced that it was opening up the App Store to game streaming services (like Xbox Cloud)in August.

Excluding Cross-Platform Messaging Apps – DOJ believes that Apple is making cross-platform messaging worse and less innovative. Here it is probably talking about iMessage.

Diminishing the Functionality of Non-Apple Smartwatches – Apple is accused of limiting the functionality of third-party smartwatches so that iPhone users rely on the Apple Watch.

Limiting Third-Party Digital Wallets – Apple has limited the tap-to-pay functionality to Apple Wallet. DOJ has said that restricting NFC functionality for other payment apps is another anticompetitive course of conduct.

The DOJ’s lawsuit is in line with the EU’s actions against Apple.