Attorney General Merrick B. Garland, in a recent address, announced a lawsuit filed by the Department of Justice, along with 15 states and the District of Columbia, against tech giant Apple. The lawsuit, lodged in the U.S. District Court for the District of New Jersey, accuses Apple of violating Section 2 of the Sherman Antitrust Act.
Garland highlighted Apple's significant market dominance, noting that "Apple's share of the U.S. performance smartphone market exceeds 70%, and its share of the entire U.S. smartphone market exceeds 65%." He pointed out that the company's pricing strategies have led to iPhone prices reaching nearly $1,600. The Attorney General emphasized that the lawsuit alleges Apple's unlawful practices have resulted in limited choices, higher prices, and less innovation for consumers and developers.
The Attorney General detailed how Apple's alleged anticompetitive conduct has restricted developers' access to the necessary interface to make apps functional on the Apple operating system. Garland also mentioned Apple's control over app distribution and creation, accusing the company of hindering competition and innovation in the smartphone market.
Garland further explained how Apple's tactics have negatively impacted user experience, particularly in messaging functionality. He cited instances where Apple intentionally degraded the quality of messaging between iPhone and non-iPhone users, forcing limitations on encryption, video quality, and editing capabilities.
Regarding Apple's practices with digital wallets and smartwatches, Garland accused the company of creating barriers that make it challenging for users and developers to operate outside the Apple ecosystem. He highlighted Apple's alleged blocking of third-party developers from creating competing digital wallets, ultimately restricting consumer choice and privacy.
The Attorney General underscored the importance of enforcing antitrust laws to protect consumers from higher prices and limited options. Garland expressed the Justice Department's commitment to upholding these laws to safeguard free and fair markets, prevent monopolistic behaviors, and ensure consumer welfare.
In closing, Garland commended the Department's Antitrust Division for their dedication to the case and reiterated the Justice Department's obligation to uphold the law and protect the interests of the American people.