Ministry of Justice of the United States Sues Apple for Alleged Anti-competitive Behavior by Restricting Features for External Developers

The United States Department of Justice, along with 15 states and Washington D.C., have filed a lawsuit against Apple in the New Jersey District Court for engaging in anti-competitive behavior, as reported yesterday.

Merrick B. Garland, the U.S. Attorney General, stated that the iPhone is a major revenue driver for Apple, accounting for over 65% of the company’s sales in America, with an average selling price of over $1,600 per device. This is due to Apple’s violation of trade laws through various strategies that harm both customers and developers.

On the customer front, the high prices of Apple devices and expensive fees impact competitiveness in the market, while developers face challenges complying with Apple’s strict regulations, making it increasingly difficult to compete.

The statement highlights how Apple’s growing anti-competitive behavior results in the company focusing less on product quality improvement and more on degrading the offerings of others. For instance, by restricting features accessible to developers, limiting the capabilities of third-party accessories not made by Apple, and imposing a 30% App Store fee.

Examples of anticompetitive practices by Apple include limiting rival apps such as cloud gaming, super apps with in-app downloads, iMessage alternatives, and restricting access to features like the Apple Wallet exclusively on the Apple Watch.

Apple’s spokesperson responded to these allegations by claiming that the lawsuit undermines Apple’s position and the differentiation that allows the company to compete in the market. If successful, the lawsuit could impact Apple’s ability to deliver its integrated technology, including hardware, software, and services interconnectedly.

Source: U.S. Department of Justice and The Wall Street Journal

TLDR: The United States Department of Justice and 15 states have sued Apple for anti-competitive practices, alleging that the company’s behavior harms both customers and developers, potentially impacting Apple’s ability to deliver its integrated technology.