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The United States is suing Apple for illegally monopolizing the smartphone market

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The United States is suing Apple for illegally monopolizing the smartphone market

One thing is certain: March 2024 will be remembered for a long time in the Tech world. From the approval of the AI ​​Act to the entry into force of the DMA (Digital Markets Act), now arriving at the statements of the United States Department of Justice on Apple, accused of illegal monopoly on the smartphone market.

The antitrust lawsuit, linked to the DOJ and 16 state attorneys general, points the finger at the ways in which, we quote, “Apple exercises its monopoly power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants, among others“. Below are some operations that Apple would have implemented in this context:

Cloud streaming app block for video games and more. According to the DOJ, these would reduce the need for more expensive hardware;
Blocking of “super apps” which could reduce user retention on iOS. For example, applications that facilitate switching to competing devices;
Limitations in messaging quality between iPhone and competing platforms such as Android. The well-known “blue bubble” issue; Limitations relating touse of third-party smartwatches on iPhone and limitations on the ability to use the Apple Watch with smartphones other than the iPhone; Limitations for third-party developers to create competing digital wallets with tap-to-pay functionality on iPhone.

The points on which the antitrust case focuses are many and it is a very intricate issue. Lisa Monaco, deputy attorney general of the DOJ, accused Apple of implementing “suffocating control over competition“. In short, the accusations are anything but trivial.

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Apple’s response, through spokesperson Fred Sainz, was not long in coming. The company states that the cause “threatens who we are and the principles that distinguish Apple products in highly competitive markets.

If successful, that it would hinder our ability to create the kind of technology people expect from Apple, where hardware, software and services intersect. It would also set a dangerous precedent, giving the Government the power to exercise a major role in designing the technology. We believe this lawsuit is wrong and we will defend ourselves“. In short, Apple seems to intend to try to dismiss the case.

How will it end? We’ll see: what is certain is that in the coming years the Department of Justice of the United States of America will be involved in various lawsuits related to theme of technological monopoly. In this regard, you may be interested in learning more about the antitrust case against Google.

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