BREAKING NEWS: DOJ, 16 States Sue Apple Over Antitrust Violations

The U.S. Department of Justice and 16 states launched an antitrust lawsuit against Apple, accusing the firm of abusing its dominant status to drive out competitors and keep consumers loyal to its products.

The lawsuit focuses on charges that Apple prevented smaller companies from accessing the hardware and software in its iPhones, resulting in less options for users.

“Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the complaint filed in the District of New Jersey said.

According to the Justice Department, “Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone. Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.”

Due to these limits, the Justice Department claims Apple has been able to stifle innovation in super apps with extensive capabilities, and its iMessage system prevents customers from utilizing cross-platform messaging apps.

The government also accused Apple of abusing its clout to stifle innovation in video game streaming services, non-Apple smartwatches, and third-party digital wallets that allow consumers to tap-to-pay.

This is the Justice Department’s third lawsuit against Apple for antitrust breaches in the last two decades. European regulators have also targeted the business for anticompetitive activity, including allegations of locking out competitors with its music streaming service.