The federal government of the United States continues its crackdown on big technology companies for alleged monopolistic practices. Following lawsuits against Google, Amazon, and Meta, the Department of Justice is now preparing to file a lawsuit against Apple. According to Bloomberg, the legal action against the tech giant, led by Tim Cook, could be filed as early as this Thursday.
President Joe Biden has made promoting competition and fighting against monopolies a priority. His administration has not only sued tech giants but also opposed mergers and acquisitions that could reduce market competition. The Department of Justice previously filed two lawsuits against Google and is now focusing on Apple for allegedly violating antitrust laws by blocking rivals from accessing iPhone hardware and software features.
The news of the impending lawsuit caused a sharp 1% drop in Apple’s stock price, resulting in a loss of approximately $27 billion in market value. The European Commission has also imposed a hefty fine on Apple for abusing its dominant position in the streaming music market. Additionally, Apple is facing demands from competitors like Meta Platforms and Microsoft for allegedly making it difficult for consumers to pay for digital content more affordably through the App Store.
Apple has been embroiled in legal battles related to antitrust laws, with Epic Games suing the company in 2020 for allegedly forcing consumers to use the App Store and charging developers high commissions on purchases. Despite a court order requiring Apple to allow alternative payment options for developers, Epic Games has accused the tech giant of imposing new rules and fees to make links to alternative payment options effectively useless.
The ongoing legal challenges against Apple highlight the growing scrutiny over big tech’s dominance in the market. Stay updated on the latest developments in the tech industry by following our Economy and Business coverage on Facebook and Twitter.