SYRACUSE, N.Y. (NCC News) — Thursday, The Justice Department announced that it will be pursuing an antitrust lawsuit against Apple. The DOJ accused the technology giant of creating an illegal monopoly in its sale of smartphones which limits other competitors’ chances to compete in the market.
The DOJ argues that Apple’s dominance in the smartphone industry limits innovation and keeps prices unreasonably high for consumers. Apple’s current practices have allowed the company to reach a yearly revenue of almost 400 billion which stands at a market value of more than $3 trillion, according to the Justice Department. The lawsuit states that Apple charges up to $1,599 for an iPhone and that their returns are more than double its competitors.
“Apple has locked its consumers into the iPhone while locking its competitors out of the market,” said Deputy Attorney General Lisa Monaco.
According to the lawsuit, which was filed in New Jersey, Apple’s monopoly allows the company to “engage in a broad, sustained, and illegal course of conduct.”
In response, Apple said that a successful lawsuit would “set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”
Major politicians have agreed with the DOJ’s decision. President Joe Biden has called for the Justice Department and the Federal Trade Commission to vigorously enforce antitrust statutes.
The lawsuit is just a recent example of aggressive antitrust enforcement by the DOJ who has also taken similar measures against Google, Amazon and other tech giants.
