US: Major lawsuit accuses Apple of illegal activity

US: Major lawsuit accuses Apple of illegal activity

A landmark lawsuit that accuses tech giant Apple of monopolising the smartphone market has been filed in the US.

The Justice Department argues that the company abused its control of the App Store to “lock in” customers and developers.

It also accuses it of behaving illegally in thwarting rivals by making their products seem less appealing.

The complaint, filed at a federal court in New Jersey, alleges that the tech giant used “a series of shapeshifting rules” and limited access to its hardware and software, in an attempt to boost profits and stifle innovation.

“Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits but by violating federal anti-trust law,” Attorney General Merrick Garland said.

Anat Alon-Beck, a business law professor at Case Western Reserve University in Ohio, said case was “far more extensive” than legal challenges against the company in the EU.

She said: “It’s not just about the 30 per cent app store fee, but about the core unfair practices of Apple.”

“Apple systematically excludes rivals from the Apple ecosystem. By doing that, Apple is hurting so many startup businesses, stakeholders, customers and, in my opinion, its shareholders,” she added.

“We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it,” the company said.

Apple was fined €1.8bn (£1.5bn) by the EU last month for falling foul of competition laws over its music streaming practices.

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