Apple monopolised smartphone markets in US, says antitrust lawsuit

Apple facing monopoly barb: Tech giant Apple has been sued by the US Department of Justice and fifteen states after grave allegations that the iPhone maker monopolised the smartphone market, hurt smaller rivals, and led to a pushing up of prices.

As the US government has cracked down on Big Tech, Apple is among many of its competitors sued by regulators. The other tech firms who have been sued earlier by both President Donald Trump and President Joe Biden-led authorities include Alphabet's Google, Meta Platforms, and Amazon.com.

"The consumers should not have to pay higher prices because companies violate the antitrust laws," Attorney General Merrick Garland said in a statement. "If left unchallenged, Apple will only continue to strengthen its smartphone monopoly."

As per the Justice Department, Apple charges as much as $1,599 for an iPhone and makes larger profits than any others in the industry. Apple, as per officials, charges various business partners, ranging from software developers to credit card companies and even its rivals such as Google,  behind the scenes in ways that ultimately raise prices for consumers and drive up Apple's profits. Apple shares were trading 3.6 per cent lower. Apple denied the allegations made by the government.

"This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect," said a company statement.  

(With Reuters inputs)