The Brewing Storm: DOJ’s Lawsuit Against Apple
The U.S. Department of Justice (DOJ) is gearing up to file a lawsuit against Apple Inc. (AAPL) on Thursday. Allegations claim that the tech behemoth breached antitrust laws by hindering competitors’ access to iPhone hardware and software capabilities.
Antitrust Battle Royale: Apple’s Legal History
The impending suite marks the third antitrust case against Apple within the past 14 years. Notably, this lawsuit unveils accusations of Apple unlawfully upholding its market dominion.
The legal tussle traces back to 2019 under the tenure of former President Donald Trump. Despite its initiation, the case against Apple was somewhat eclipsed as the antitrust division focused on litigations against Alphabet Inc.’s Google. Meanwhile, Epic Games Inc. mounted allegations of monopolization against Apple in 2020, further delaying the DOJ’s move.
Rising Against Titans: Biden Administration’s Antitrust Drive
The legal action also signifies a surge in the Biden administration’s stance against colossal U.S. tech entities on antitrust matters. While the Justice Department is prosecuting Alphabet Inc.’s Google for alleged monopolistic practices, the Federal Trade Commission is actively pursuing antitrust litigations against Meta Platforms Inc. and Amazon.com Inc.
Global Gauntlet: Apple’s Legal Challenges
This impending suit adds to Apple’s growing global legal predicaments. Recently, the company was fined €1.8 billion for purportedly impeding music streaming competitors from offering more affordable deals. Apple contests the penalty, contending regulators failed to substantiate any consumer harm.
With the advent of the EU’s Digital Markets Act, Apple could face a comprehensive probe. The Act introduces stringent penalties for non-compliance, potentially reaching up to 10% of a firm’s yearly global revenue.
In January, the Cupertino-based tech giant settled a $13.7 million fine with Russia’s Federal Antimonopoly Service over alleged abuse of its prevalent market standing.
