Apple Under Scrutiny for Unfair Market Practices

CaseyGerry is investigating allegations against tech company Apple Computer, Inc. (Apple) for allegedly monopolizing the smartphone market and violating antitrust laws.

A lawsuit filed in California on Friday, April 26, 2024, against the multinational, stated that the company has violated antitrust laws and engaged in unfair market practices. The suit alleges that the company restricts competition by ‘locking’ its user base into the Apple ecosystem. That is, Apple product users are limited to Apple products, and developers are restricted in what and how they innovate and distribute apps.

In March of 2024, the Justice Department, along with 16 states across the country, filed an antitrust lawsuit against Apple, accusing the company of monopolizing the Smartphone market in violation of the Sherman Act. The complaint was filed in the U.S. District Court in New Jersey and alleged that the company has sustained a monopoly by holding users and developers hostage through imposing contractual agreements, and by making them inherently reliant on Apple.

According to the article on justice.gov, Apple has made it extremely difficult for users dissatisfied with the products to switch services, and imposes unnecessary obstacles and costs on developers, and prevents innovation.

“We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law.” Said United States Attorney General Merrick B. Garland.

App developers face numerous restrictions and fees in development, such as Apple’s Developer Program License Agreement, which limits how developers use Apple’s APIs. In addition, the company also exerts control over developers by allowing them to use only programming interfaces approved by the company to create third-party apps.

In addition, the company allegedly controls the distribution of products by requiring apps to be distributed solely via the Apple Store.

In regards to Apple consumers, allegations include monopoly of the market by ‘locking’ users to Apple products and severely limiting access to other, possibly more innovative products or services.

The New Jersey lawsuit breaks down Apple’s anticompetitive tactics into five categories. Apple allegedly:

• Curbs innovation by restricting access to apps that would make switching between smartphone platforms easier for Apple consumers.
• Halted the development of cloud-streaming apps for video, games, and other content that users can access without paying high fees for hardware.
• Discourages the use of other cross-platform messaging apps by making them less secure and less user-friendly.
• Prevents Apple users from using third-party digital wallets.
• Cut functionality for integration between non-Apple smartwatches and iPhones, forcing consumers to continue buying Apple products.

By controlling development and distribution, Apple has successfully circumvented competing on an even playing field, curbing innovation while keeping prices high and services sub-par.

CaseyGerry has extensive experience representing consumers against companies that have wronged them.

If you have an Apple product and believe you have been restricted from better and more accessible services and products, please contact our law office at (619) 238-1811 to explore your legal rights.