Justice Department, states accuse Apple of holding a smartphone monopoly

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The Justice Department accused Apple of breaking federal antitrust law, plunging the tech giant into a high-stakes showdown over its alleged abuse of power.

Washington, D.C. — Sept. 14: Apple CEO Tim Cook departs the U.S. House of Representatives on Capitol Hill on Thursday, Sept. 14, 2023, in Washington, DC. The civil complaint, filed in the U.S. District Court for the District of New Jersey, alleges the company has illegally“a series of shapeshifting rules and restrictions” to “extract higher fees, thwart innovation, offer a less secure or degraded user experience, and throttle competitive alternatives.

Apple spokesman Fred Sainz said in a statement that the lawsuit is “wrong on the facts and the law” and that the company “will vigorously defend against it.” Apple is facing mounting legal and regulatory scrutiny on several fronts, including for purportedly exploiting its grip over competitors and consumers by imposing restrictions and steep fees in its popular App Store.Critics have long accused the tech giant of undermining smaller companies by barring app makers from using outside payment systems and charging hefty fees on transactions.

 

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