Justice Department lawsuit accuses Apple of antitrust violations

U.S. Attorney General Merrick Garland on Thursday said Apple has monopolized smartphone markets by violating antitrust laws, rather than by the merits of its products. Fifteen states and the District of Columbia joined in the Department of Justice’s lawsuit against Apple, which was filed Thursday in the U.S. District Court for New Jersey. Apple plans to defend itself against the lawsuit, which it said was wrong on numerous points, the company told WORLD.

What is the Justice Department specifically charging Apple with? The lawsuit alleges that Apple violated Section 2 of the Sherman Antitrust Act. The DOJ says the company assembled a 70 percent share of the “performance smartphone market” and 65 percent of the entire smartphone market. It has done so with “exclusionary, anticompetitive conduct,” Garland said, by keeping users within its orbit of products and software. The DOJ also alleges specific violations of New Jersey and Wisconsin laws.

In layman’s terms, what was Apple allegedly doing? Garland on Thursday said that Apple has reduced the ease and effectiveness of text messaging between Apple and non-Apple devices and with non-Apple messaging apps. He also said Apple had collected a 30 percent commission from app developers and set up barriers to moving outside the “Apple ecosystem.” He said Apple has also fought to keep its users from moving to competing devices.

What does Apple say about these accusations? Apple told WORLD, “This lawsuit is wrong on the facts and the law, and we will vigorously defend against it.” It added that, as a company, it works hard to make products people “love” in “fiercely competitive markets.” Apple said that if the lawsuit succeeds, it would limit Apple’s ability to provide technology products that consumers expect.

Dig deeper: Listen to Mary Reichard’s discussion with Dean Cheng on The World and Everything in It podcast about new self-censorship actions in Hong Kong.