Apple sued by US Department of Justice: Why claims of iPhone monopoly don’t make sense

tech.hindustantimes.com:

Apple has found itself in hot waters again, just months after it faced a lawsuit from Masimo over its blood-oxygen monitoring feature. This time, it faces the wrath of the US Department of Justice, whose lawsuit alleges that the iPhone maker has put up a walled garden that prevents its consumers from switching to rival brands.

According to the lawsuit filed in the US District Court for the District of New Jersey by the Department of Justice, 15 states and the District of Columbia, Apple's iPhone monopoly violates Section 2 of the Sherman Antitrust Act which makes it illegal to “monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations.”

Also Read: 10 things to know about US DOJ's accusations against Apple

In essence, the DOJ accuses Apple of creating a monopoly with its iPhone and related services in the US. While Apple has stayed ahead of the competition due to its own merit, but also by allegedly violating federal antitrust laws. Due to Apple's walled ecosystem, users are faced with fewer choices and often end up paying higher fees, while also having access to “lower quality smartphones, apps, and accessories”. 

The lawsuit further alleges that this leads to less innovation from Apple as well as its competitors.

With its “exclusionary, anticompetitive conduct”, Apple allegedly not only makes its products better but also makes others worse. The lawsuit claims this happens in two ways:

1. Developers are imposed by contractual restrictions and fees. Bound by this, they tend to offer fewer features to iPhone users.

2. It degrades the functionality between the iPhone's operating system and third-party applications by restricting access to the points of connection. This also leads to an inferior performance of non-Apple accessories and apps. This allegation also highlights the issue of Apple Watches not being compatible with Android