Apple Being Accused Of Running Illegal Monopoly In The Smartphone Industry

Apple is being sued for allegedly having an illegal stronghold in the smartphone industry.

As The Verge reports, the U.S. Department of Justice has accused the massive tech company of operating a monopoly using various strategies. The company allegedly raises prices for not only consumers but also for developers by implementing strict contract measures as a way to prevent competition from succeeding in the market.

View this post on Instagram

A post shared by apple (@apple)

The lawsuit primarily goes after Apple’s tightly controlled ecosystem, which allows all its products, such as the iPhone, iPad, Mac, and Apple Watch, to work together in sync. This setup is referred to as a “walled garden” and has made Apple the most sought-after for its devices. However, this is reportedly a significant issue for other smartphone companies, which often design products that are not always compatible with Apple devices.

“Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others,” the DOJ wrote in its lawsuit filing, which was filed in the U.S. District Court for the District of New Jersey.

Apple is pushing back against the lawsuit, claiming that it threatens the products that customers have grown reliant on.

“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. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it,” Apple spokesperson Fred Sainz explained in a statement.