Why did the US Department of Justice sue Apple?

The United States Department of Justice has filed a lawsuit against Apple. According to the legal documents, presented Thursday morning, March 21, before a District Court of New Jersey, the US government accuses the technology company of violating the federal antitrust law by monopolizing the smartphone market.

As revealed by Attorney General Merrick Garland, the success of the Cupertino, California-based company is not only attributed to its merits, but also to the monopoly exercised in the industry.

“Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits, but by violating federal antitrust law,” said Prosecutor Garland through a press conference. “Consumers should not have to pay higher prices because companies break the law (...) Monopolies like Apple’s threaten the free and fair markets upon which our economy is based. They stifle innovation; they hurt producers and workers; and they increase costs for consumers,” he added.

Restriction on hardware and software

According to the plaintiff, Apple has created a monopoly by limiting access to its hardware and software, thus increasing the barrier to competition, since the company offers full access to its functions to its own products, while competitors have to deal with restrictions.

For example, all Apple products can connect with an Airtag, while competitors, such as Android or Huawei smartphones, have more limited capabilities with this type of product. Another clear example is sending high-quality images and videos between iPhones, which takes place without problem. However, when you share multimedia with Android phones, the content drops in quality.

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Apple denies the accusations

Once the complaint became public, Apple shared a statement denying the accusations, in addition to noting that they will defend themselves “vigorously” against it. “We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it,” Apple spokesman Fred Sainz said.

“At Apple, we innovate every day to make technology people love—designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users,” read the statement. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets.”

“If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect,” Sainz added. “It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”