Apple is accused of monopolizing the smartphone market in US antitrust lawsuits

・Attorney General Merrick Garland stated in a statement that “there is no need for consumers to pay a high price just because a company violates the Antimonopoly Act.” “If left as is, Apple will continue to further strengthen its monopoly on smartphones.”

・According to the Justice Department, Apple is making a bigger profit than any other company in the industry, with the iPhone being priced as high as $1,599. The people involved also said that Apple is charging fees behind the scenes to various business partners, from software developers to credit card companies, and even rivals such as Google, in the form of eventually raising consumer prices and boosting Apple's profits.

・Apple's business model dates back to the days when it was an unlucky player in the personal computer market, and has long been based on charging users a premium for technology products, and the company determines almost every detail of how the device works and how it is used. The Department of Justice is trying to reverse that business model by forcing Apple, which has a market value of 2.7 trillion dollars, to provide users with more options on how applications can use hardware designed by Apple.

Apple has denied the government's claims. “This lawsuit threatens our existence and the principles that set Apple products apart in a highly competitive market. If the lawsuit succeeds, it will hinder our ability to create technology where hardware, software, and services intersect, as people expect from Apple.” Assistant White House Press Secretary Michael Kikukawa stated, “President Biden strongly supports fair and strong enforcement of the Antimonopoly Act.”

The Justice Department is trying to define this market as the US smartphone market, but most analysts believe that Apple occupies just over half of the market. Apple representatives said they intend to persuade the court to define this market, where only one-fifth of consumers own iPhones, as the global smartphone market.

The Department of Justice quoted a series of emails from Apple co-founder Steve Jobs, who passed away in 2011, and stated that how easily consumers switch from iPhones to Android phones is “not fun to watch,” and vowed to “force” developers to use it. A payment system to lock in both developers and consumers.

It's unclear what specific changes the Department of Justice is seeking. The lawsuit requires the court to prohibit Apple from using its own control over application distribution, contracts, and use of private software interfaces to weaken competitors, and to make other necessary orders “to restore competitive conditions in markets affected by Apple's illegal acts.”