The US Department of Justice and 15 states sued Apple as it was alleged that the iPhone maker monopolized smartphone market, hurt smaller rivals and drove up prices.
Apple joins competitors sued by regulators, including Alphabet’s, Google, Meta Platforms and Amazon.com.
‘Consumers should not have to pay higher prices because companies violate the antitrust laws. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly’, said Attorney General Merrick Garland in a statement.
The company will face investigations in Europe about complying with the Digital Markets Act. Shares of the company slipped 4.1%, erasing about $113 billion in market value and taking their year-to-date loss back to 11%.
The company- was once the world’s most valuable firm at more than $3 trillion-has underperformed both the Nasdaq 100 and the S&P 500 in 2024.
The United States suit accuses Apple of blocking rivals from accessing hardware and software features on its popular devices while the possible probe in Europe will focus on the firm’s new fees, terms and conditions for app store developers.
Apple fired back at the US lawsuit by calling it wrong on the facts and the law. Apple said that the action would set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.
Comments