"Blocking Competitor Apps Illegally and Exclusively"
Apple Announces Active Defense Measures
The U.S. Department of Justice has filed an antitrust lawsuit against Apple. It viewed Apple's operation of a closed mobile ecosystem as preventing consumers from using innovative features and switching to competitors' products. Following the European Union (EU), U.S. authorities have also targeted Apple, putting the company in a position where it must face legal battles over antitrust allegations on both fronts.
On the 21st (local time), the U.S. Department of Justice filed a lawsuit against Apple for antitrust violations in the federal court of New Jersey. Sixteen state attorneys general joined the lawsuit jointly.
The Department of Justice claimed that Apple strengthened its control over iPhone software to block competitors from offering innovative features. Apple only allows its own messaging apps and payment services on the App Store, blocking third-party messaging apps, digital wallets, cloud streaming services, and more. Apple has maintained a closed App Store operation strategy, citing the need to ensure safety from viruses, fraud, and other threats. The Department of Justice particularly pointed out that Apple blocked app compatibility with third parties, making it difficult for consumers to switch to devices running operating systems other than Apple's, such as Android. The DOJ views this as enforcing a 'lock-in effect' that led to increased consumer fees.
The Department of Justice stated, "This case aims to free the smartphone market from Apple's anti-competitive and exclusive practices," adding, "It is also to restore competition, lower smartphone prices for consumers, reduce developer fees, and preserve innovation for the future."
Merrick Garland, U.S. Attorney General, criticized, "Apple maintained its power not because of excellence but through illegal and exclusive behavior," and said, "Instead of making its own products better, it made other products worse to strengthen its monopoly."
With this, the U.S. Department of Justice concluded its investigation five years after starting the antitrust probe into Apple in 2019. Additionally, U.S. competition authorities have now filed antitrust lawsuits against all four major big tech companies: Amazon, Google, Meta Platforms (Facebook's parent company), and Apple.
Apple immediately pushed back and announced an active response. The company stated, "This lawsuit is wrong based on facts and law," and argued, "It will set a dangerous precedent that allows excessive government intervention in technology design."
Apple is also under intense antitrust scrutiny in Europe. Earlier, EU competition authorities fined Apple 1.84 billion euros (approximately 2.67 trillion won) for abusing its dominance in the music streaming app market. Following the recent enforcement of the EU Digital Markets Act (DMA), Apple revised its App Store operation strategy this month by allowing app downloads from developers' web browsers in Europe without going through its App Store.
Meanwhile, Apple's stock price fell 4.19% as of 2:03 PM on the day the U.S. authorities filed the antitrust lawsuit.
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