The US government sued the technology company Apple after accusing it of violating antitrust laws. The Department of Justice and more than a dozen state judges allege that the company does not allow its products to be compatible with those of other brands, as well as charging high commissions to digital developers and monopolizing the App Store. The company assures that this new demand represents a risk to the free market.
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Alleging increased costs for consumers and unfair competition with other competitors, the Department of Justice and 16 US attorneys general sued Apple.
The legal challenge was filed in a federal court in New Jersey, accusing Apple of blocking access to its competitors' hardware and software functions, that is, The technology giant's products are not compatible with those of other brands, which would violate antitrust laws.
Apple charges nearly $1,600 for an iPhone, but as our lawsuit alleges, Apple maintains monopoly power in the smartphone market, not simply by getting ahead of the competition on the merits, but also by violating federal antitrust law. “said US Attorney General Merrick Garland.
The prosecutor added that consumers should not pay higher prices for fewer features and that Apple would be strengthening its monopoly in the smartphone market with its flagship product, the iPhone.
In the lawsuit you can read that Apple has prevented the development of so-called “super applications”, which seek to allow buyers to optimally transfer their data from one smartphone to another, for example from an iOS system to an Android.
Likewise, the company led by Tim Cook is accused of block the development of streaming applications that allow you to watch high-quality videos without having to pay for more storage space on the cloud.
But the accusation is not only against the iPhone, it also includes other products of the company such as the Apple Watch, iPad and iMac, as they are configured to only work connected to other Apple productswhich generates a closure of the market as explained by the demand.
The judicial appeal ensures that instead of responding to competition with more competitive prices, Apple has imposed rules and restrictions through its App Store application store.
The technology giant allows itself to charge “higher rates, frustrate innovation, offer a less secure or degraded user experience, and strangle competitive alternatives,” the lawsuit adds.
Other technology companies also face processes
Apple immediately responded by denying the allegations and accused Joe Biden's Government of overstepping its federal functions.
This lawsuit threatens who we are and the principles that differentiate Apple products in intensely competitive markets. (…) If the lawsuit is successful, a dangerous precedent will be set, giving the Government power to intervene in the design of technology
It is one of the most powerful companies in the United States and the world that has some annual revenues of almost $400 billion and a market value that borders $3 million dollars.
But Apple is not the only technology giant targeted by the federal government. The Justice Department has already sued Google, Amazon and Microsoft with similar accusations on violation of antitrust measures.
While the Federal Communications Commission has also become involved in the issue and has open cases against the parent company Facebook and Meta.
Various accusations weigh on Apple
There are various criticisms and legal challenges against the technology giant Apple. In 2010, the company was accused of making an illegal agreement not to hire employees from Google, Adobe or Pixar.
And one of the most important legal disputes occurred in 2012, when the Department of Justice filed another lawsuit against Apple for anti-competitive violations.
A lawsuit that forced the company to change certain practices to comply with antitrust law, after it was found that Apple and book publishers illegally fixed the prices of e-books sold on the iPad.
The private sector is also involved. Recently Meta, Microsoft and X have complained that Apple has failed to comply with a court order to regulate payments in the App Store, mainly in Epic Games' Fornite video game.
Epic Games sued Apple for forcing its consumers to obtain applications through the App Store, in addition to charging 30% in commissions to developers.
The demands have also crossed borders. The European Union forced Apple to change its business practices with the Digital Markets Law that came into force earlier this month.
The law requires Apple to allow its users to download applications in stores other than the App Store, marking an important and unique precedent in the world. Although Epic accuses Apple of preventing it from launching its app store on iOS.
Apple also bowed last year to European pressure to standardize USB-C charging ports on iPhones sold on European soil.
With EFE and local media
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