The Department of Justice has launched a legal battle against Apple, accusing the tech giant of using its monopoly in the smartphone market to stifle innovation and throttle competitors. Apple has vehemently denied the allegations and vowed to vigorously defend itself against the lawsuit. This legal action marks a significant escalation in the regulatory challenges faced by the once-dominant iPhone-maker.
Prior antitrust cases against Apple have primarily focused on its App Store, where the company imposes a 30% fee on most in-app purchases. However, the latest lawsuit takes aim at Apple’s entire business operations, citing instances where the company allegedly hindered competitors to maintain its dominance. The lawsuit highlights Apple’s practices of blocking super-apps, restricting access to cloud-based gaming apps, and ensuring poor service for rival gadgets interacting with iPhones.
In addition to the Department of Justice’s lawsuit, Apple is also grappling with legal challenges in the European Union. The EU’s Digital Markets Act has compelled Apple to make changes to the App Store, allowing developers to distribute their apps without using Apple’s platform and bypassing the 30% commission. Regulators in Brussels are reportedly gearing up for further investigations into Apple’s business practices.
These legal battles have taken a toll on Apple’s share price, which fell by approximately 4% following the news of the Department of Justice’s lawsuit. As the tech industry faces increasing scrutiny from antitrust regulators, Apple finds itself at the center of a growing storm of legal and regulatory challenges.
2024-03-21 23:29:51
Article from www.economist.com