The United States they accuse Apple to have maintained the monopoly in the field of smartphone, stifling competition and limiting consumer choice. The stock closed on Wall Street down by 4,13%: the biggest drop since August, after the legal action initiated by the US Department of Justice for violation of antitrust laws.
Apple, the Biden government's accusations
The USA, therefore, points the finger at Cupertino and does so with a lawsuit for violation of antitrust laws: a lawsuit that represents thelast thrust in temporal order ofBiden administration against the dominance of Big Tech. In the legal action, the Department of Justice and the attorneys general of 16 US states are targeting the iPhone ecosystem, the engine of Apple's growth for decades.
Cupertino is "one of the most valuable companies in the world": its net profit "exceeds the GDP of more than 100 countries" largely thanks to the iPhone, the Justice Minister said merrick garland, accusing Apple of having maintained a monopoly “not because it produced superior technology, but because it limited and used exclusionary tactics” against the competition. “Consumers should not have to pay higher prices because companies violate antitrust laws,” Garland further observed, placing emphasis on the barriers introduced by Cupertino to make it difficult for its customers to exit its ecosystem.
Apple, response to the US: "Dangerous precedent"
Apple has flatly denied the allegations and branded the legal action "wrong." “This lawsuit threatens who we are and the principle that distinguishes our products in a highly competitive market,” Cupertino explained, specifying that if the lawsuit is successful it will “jeopardize our ability to create the technology that people expect from Apple ” and will set a “dangerous precedent,” granting government “the power to exercise a heavy hand in designing technology for people. We believe the lawsuit is wrong in fact and law and we will defend ourselves." Words that are not enough to reassure those who fear the effects of the legal action on revenues from Apple's services, an area that invoices 85 billion dollars a year, and above all on the possible remedies that the authorities could take, among which - they hypothesize some observers – a stew. Concerns sinking Cupertino stocks on Wall Street in a record session for American stock markets, just as CEO Tim Cook he is in China to support Apple in one of its most important markets.
Apple to launch investigation in 2019
The Justice Department began investigating Apple in 2019 and opted to make a broader and more ambitious case than the allegations made by other regulators against the company. Instead of focusing just on the App Store, the Justice Department targeted Apple's entire ecosystem of products and services. In the legal action, the authorities in fact point the finger at the restrictions imposed on developers, video games and the offer of applications capable of competing with Apple products such as the 'digital wallet'. Also criticized are the difficulties of those who have an iPhone in messaging with those who have other smartphones, such as those that run on Google's Android operating system. But also the difficulties of making an iPhone work with a smartwatch that is not the Apple Watch. Cupertino, the prosecution further underlined, also prevented the development of so-called 'super apps' to keep iPhone users in the Apple ecosystem: allowing super apps would have meant "opening the door to barbarians", he said the Justice Department citing an email from an Apple manager.
Biden and the war against big tech
However, Cupertino is not the only one in the sights of the American authorities, even if several observers have already defined its antitrust case as one of the most significant in US history, together with those against At & t, Standard Oil e Microsoft. The Department of Justice has in fact sued last year at Google for monopoly in the digital advertising market. The Federal Trade Commission instead blamed Amazon to use its monopoly to make consumers pay more and exploit those who sell on the platform.
