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The US Department of Justice (DOJ) is suing Apple for allegedly violating antitrust law, according to a lawsuit filed Thursday in a New Jersey federal court.
The DOJ alleges that Apple has blocked and suppressed third-party developers from being able to offer competing apps and services, such as digital wallets, on Apple's iOS devices. It's also allegedly taken steps to stop multifunctional "super" apps and has made it harder for iPhone or Apple Watch users to move to an Android device.
The DOJ is also accusing Apple of purposely degrading interoperable message quality between iOS and Android devices, and has reduced overall user privacy and security in an effort to retain its dominant market status.
In a Thursday press conference, the DOJ alleged that Apple is violating Section 2 of the Sherman Antitrust Act, citing "exclusionary, anti-competitive conduct that hurts both consumers and developers." The agency argues that Apple is simply "making other products worse."
The DOJ says Apple is also making consumers pay higher prices than if there was more market competition. “Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland said in a statement. "We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly."
DOJ Antitrust Division Assistant Attorney General Jonathan Cantor stated that Apple has established a "pattern of conduct that goes back over a decade" and argues that more competition would actually make user devices more secure.
Cantor added that Apple's "exclusionary conduct" isn't necessary for the iPhone maker to uphold high standards of user privacy and security. He shared that the DOJ is primarily targeting Apple's iPhone, as opposed to its other products like the iPad, because it believes Apple's "core monopoly is in the iPhone."
Unsurprisingly, Apple sees things differently. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” an Apple spokesman said in a statement to The Wall Street Journal. “If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect.” PCMag has reached out to Apple for additional comment.
The US has previously filed antitrust lawsuits against Amazon, Meta, and Google.
Apple has also faced an ongoing battle with Epic Games over its iOS App Store for years, with Epic Games CEO Tim Sweeney repeatedly criticizing the iPhone maker for "anticompetitive" practices. Earlier this month, Apple said it will allow Epic Games to launch its own iOS app store in the European Union, but only because of the Digital Markets Act. Epic hasn't won everything it sought from its initial lawsuit.
When asked why the DOJ is suing Apple given some of Apple's prior wins against Epic, Garland argued during the stream that the DOJ's case is "distinct" from Epic's, and said: "The United States normally wins the cases that it brings."