States join antitrust lawsuit against Apple over iPhone monopoly

Four more states are joining a lawsuit against Apple over its alleged monopoly in smartphone markets

The US Department of Justice said on Tuesday that four more states have joined a lawsuit opposing Apple Inc, alleging that the tech giant monopolizes smartphone markets. The states of Indiana, Massachusetts, Nevada and Washington joined the unique lawsuit, which was filed in March and included 15 states and the District of Columbia as plaintiffs.

Deputy Attorney General Jonathan Kanter of the Antitrust Division expressed his support for new states to join a coalition aimed at disrupting Apple’s market dominance. The lawsuit alleges that Apple uses its market power to extract more cash from customers, builders, content creators, artists, publishers, small businesses and retailers. The company is accused of maintaining an illegal monopoly in the smartphone sector by imposing contractual restrictions on smartphone manufacturers and denying them access to key goods.

The Justice Department says Apple overspends on its iPhones and makes significant revenues compared to its rivals. Apple can also be accused of imposing hidden fees on numerous companion companies, which ultimately raises costs for customers.

In response to the lawsuit, Apple plans to ask federal authorities in New Jersey to dismiss the case, arguing that the company faces fierce competition from established rivals. A company spokesperson emphasized that the authorized issue threatens Apple’s ability to innovate and provide the expertise of a single person.

In addition to the U.S. lawsuit, Apple may also face authorized challenges in Europe. European regulators recently fined the company nearly $2 billion for allegedly banning competitors from music streaming companies.

The Justice Department’s criticism focuses on how Apple has allegedly maintained a monopoly on the iPhone by disrupting apps that can make it easier for customers to switch smartphones, blocking cloud streaming companies and downgrading messaging app options. The lawsuit will have significant implications for the technology industry and the aggressive smartphone business panorama.