(ConservativeSense.com) – The Department of Justice (DOJ) is suing tech giant Apple for illegally monopolizing the smartphone market. The antitrust lawsuit, filed in New Jersey, states that Apple is engaged in a “broad, sustained, and illegal course of conduct” that hampers competition and impedes innovation. The DOJ justified the action, saying it demands a fair and competitive marketplace, and noted it had also filed the suit with more than a dozen Attorneys General.
Apple responded, stating that the DOJ’s claim was wrong on the facts and it would “vigorously” defend itself. The case is one of a growing number pursued by the Biden administration, which some business leaders say are overreaching. However, several Democrats have praised the action against Apple, with Attorney General Merrick Garland claiming the company hurts consumers and will continue to do so unless tackled.
The lawsuit cites several instances of Apple’s alleged lawbreaking, including suppressing technologies that would boost innovation in the sector. For example, the smartphone titan, which controls 65% of the market, prevents third parties from developing digital wallets. Mr. Garland said Apple “inserts itself” into digital transactions that “could otherwise occur directly between the user and card issuer.”
The California-based company furthermore “intentionally” ensures that owners of rival smartphones experience lower-quality messaging, such as a lack of encryption and pixelated images. “The experience of messaging friends and family who do not own iPhones is worse,” the suit claims.
Apple shares fell 3.5% after the lawsuit was announced, raising the decrease to 7% this year and causing it to fall into second place to its key rival, Microsoft.
In March, Apple’s value was $544 billion, with Microsoft rising to $3.2 trillion – a dramatic reversal in fortunes. In 2022, Apple was $500 billion larger than its competitor. Microsoft’s stock rose 1% as Apple’s fell, closing at a record $429 share price on March 20. The boost follows the unveiling of Microsoft’s first artificial intelligence (AI) based devices, adding to its AI market dominance.
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