On March 21, 2024, the U.S. government, 15 states and the District of Columbia filed an antitrust lawsuit against Apple. What is the case about?
The government says Apple built a dominant iPhone ecosystem, driving its high valuation. But Apple faced threats from other products, particularly Android devices. And in response, it didn’t offer lower prices or offer better terms to developers and consumers. Instead, it imposed complex rules and fees through its App Store and developer agreements, stifling innovation and limiting competition.
Apple’s actions have increased its smartphone dominance and expanded its control to digital wallets and smartwatches by restricting their compatibility with non-Apple products. And this has had broader implications in other industries. The government claims Apple has stifled innovation and competition tied to smartphone technology, such as financial services, entertainment, and more.
So the case seeks to address Apple’s anticompetitive behavior. It aims to restore competition, lower prices for consumers, reduce fees for developers, and encourage innovation. The case is particularly interesting in how it highlights the contrast between Apple’s early days as an innovative startup and its current status as a monopolist.
The government says that this has drastically hurt market competition and consumers.