Apple faces antitrust lawsuit over alleged monopoly in smartphone market

SEATTLE – Washington State Attorney General Bob Ferguson announced today that he will join the U.S. Department of Justice and a bipartisan coalition of 20 attorneys general in the antitrust lawsuit against Apple. The lawsuit, originally filed on March 21 in the U.S. District Court for the District of New Jersey, accuses Apple of unlawfully monopolizing the smartphone market.

The lawsuit alleges that Apple used its monopoly power to control how users, developers and companies interact with the iPhone, thereby stifling innovation and keeping prices high. It alleges that Apple’s practices harm consumers by limiting their choices, such as preventing them from using alternative app stores and digital wallets.

Former Apple CEO Steve Jobs is cited in the lawsuit for wanting to “further lock customers” into the Apple ecosystem. The lawsuit argues that this strategy has prevented competition and consumer choice, particularly in areas such as messaging, streaming and digital payments.

“An open market encourages competition and creativity,” Ferguson said. “Apple’s smartphone monopoly drives its profits at the expense of users, developers and businesses. Ending illegal monopolization will level the playing field for everyone.”

The lawsuit asked the court to stop Apple from weakening competing technologies and entering into agreements that strengthen its monopoly. This highlights Apple’s significant market share, with the iPhone holding over 70% of the high-performance smartphone market and 85% among teenagers.

Deputy Attorney General Lumi Nodit will handle the case on behalf of Washington. The lawsuit details several ways Apple allegedly violates antitrust laws, including restricting third-party messaging apps, blocking cloud streaming services, and limiting the functionality of third-party smartwatches.

Apple has been accused of violating its privacy and security claims when it is financially advantageous to do so, prioritizing its monopoly over consumer protection. The outcome of this lawsuit could significantly impact the smartphone industry and consumer choices.