The US Justice Department and 16 state and district Attorneys General have launched a significant legal battle against Apple (AAPL), alleging the tech giant’s violation of antitrust laws with both its hardware and software.
The suit contends that Apple holds a monopoly in the smartphone market and asserts that its practices detrimentally affect consumers, developers, and competition. According to the suit, Apple combats “competitive threats by imposing a series of shapeshifting rules and restrictions in its App Store guidelines and developer agreements that would allow Apple to extract higher fees, thwart innovation, offer a less secure or degraded user experience, and throttle competitive alternatives.”
In response, Apple has vehemently defended itself, stating, “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… We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”
