Biden government sues Apple for creating a monopoly in the telephone market

The Government of US President Joe Biden filed a lawsuit this Thursday against Manzanaclaiming that the technology giant has created a monopoly in the smartphone market with its iPhone model.

The lawsuit, filed in federal court in New Jersey, represents the first major antitrust effort against Manzana by the Biden Administration.

“Consumers Shouldn’t Have to Pay Higher Prices Because Companies Violate Antitrust Laws“Attorney General Merrick Garland said in a statement.

“If this does not change, Manzana will continue to strengthen its monopoly on smartphones”he added.

The lawsuit, filed by the Department of Justice and 16 state attorneys general, accuses Apple of having restricted access to the technology it uses for iPhones in ways that increase costs for consumers and deter potential rivals. launch other smartphones.

The Department of Justice states that Manzana has used his control over the iPhone to “engage in a type of illegal conduct, on a broad and sustained basis”.

Among other things, the lawsuit alleges that Manzana prevents the successful development of the so-called “super apps” that would allow consumers to more easily switch smartphones.

Apple is also accused of blocking the development of streaming apps that would allow users to enjoy high-quality video without having to pay for more cloud space or hardware so the phone can support it.

The case specifically targets the digital fortress that Apple has created not only with the iPhone, but also with other products such as the iPad, Mac and Apple Watch so that consumers have to rely on those devices and cannot combine them with other products from other companies. .

Apple, based in Cupertino (California), denied the allegations and accused the Government of having overstepped its bounds, according to a statement reported by local media.

“This lawsuit threatens who we are and the principles that differentiate Apple products in intensely competitive markets.“, Apple defended itself, which assured that if the lawsuit is successful it will sit down “a dangerous precedent”, giving power to the Government to intervene in the design of technology.

With this demand, Manzana It joins the list of technology giants against which the Biden Government has launched an offensive.

The Justice Department has already sued Google for monopolizing digital advertising services, and the Federal Trade Commission has a pending antitrust case against Facebook parent Meta and another against Amazon.

Apple is one of the most powerful companies in the world with annual revenues of nearly $400 billion and, until recently, a market value of more than $3 trillion.