Doj And States Sue Apple Over Alleged Monopoly In Smartphone Market

Apple Faces Antitrust Lawsuit From US Justice Department

DOJ and States Sue Apple Over Alleged Monopoly in Smartphone Market

$500 Million Settlement for iPhone Users

In a major antitrust lawsuit, the US Department of Justice (DOJ) and 35 states have accused Apple of operating an illegal monopoly in the smartphone market. The lawsuit, filed Thursday, December 22nd, 2023, alleges that Apple has used its market power to stifle competition, raise prices, and harm consumers.

The DOJ's complaint alleges that Apple has engaged in "anti-competitive conduct" that has "resulted in higher prices, less innovation, and fewer choices for consumers." The complaint highlights three main areas of concern:

• Apple's control over the iOS operating system and App Store.
• Apple's alleged exclusion of competing app stores from iOS devices.
• Apple's alleged restrictions on app developers.

The DOJ argues that Apple's control over iOS has allowed it to exercise a "monopoly" over the distribution of apps on iOS devices. This control, the DOJ alleges, has allowed Apple to charge exorbitant fees for app distribution and to impose restrictive terms on app developers.

The DOJ's lawsuit is a significant escalation in the government's crackdown on Big Tech. It is the second major antitrust lawsuit filed against Apple by the DOJ in recent years. In 2021, the DOJ filed a lawsuit against Apple over its App Store policies. That lawsuit is still ongoing.

In addition to the DOJ's lawsuit, several states have also filed their own antitrust lawsuits against Apple. These lawsuits allege that Apple has violated state antitrust laws by engaging in anti-competitive conduct.

Apple has denied the allegations in the lawsuits and has vowed to fight them vigorously. The company has argued that its App Store policies are pro-competitive and that they have benefited both consumers and developers.

The outcome of the DOJ's antitrust lawsuit against Apple is uncertain. The case is likely to be complex and could take years to resolve. However, if the DOJ is successful in its lawsuit, it could have a significant impact on Apple's business and the smartphone market as a whole.

$500 Million Settlement for iPhone Users

In addition to the antitrust lawsuit, Apple has also agreed to pay between $310 million and $500 million to up to roughly 3 million users of many pre-2018 model iPhones. The settlement stems from a class-action lawsuit that alleged that Apple intentionally slowed down older iPhones to encourage users to buy new iPhones.

Apple has denied the allegations in the class-action lawsuit and has maintained that the company never intentionally slowed down iPhones. However, the company has agreed to settle the lawsuit to avoid further litigation.

Under the terms of the settlement, Apple will pay $310 million to $500 million to eligible iPhone users. Eligible users can receive up to $25 per device. To be eligible for a payment, users must have owned an iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus, or SE, and must have updated their phone to iOS 10.2.1 or later before December 21, 2017.

The settlement is still pending preliminary approval by a federal judge. However, if it is approved, it could provide a significant payout to iPhone users who were affected by Apple's alleged slowdown.