Apple to fight US Justice Dept anti-trust accusations

Apple will defend itself from the US Justice Department which is accusing the Cupertino giant of violating US federal and state antitrust laws.

The 800-page complaint was filed on Thursday in a US. District Court in New Jersey by the Justice Department and 16 other US state and district attorneys general and says Apple has violated antitrust laws various U.S. federal and state antitrust laws, including the Sherman Act by making it difficult for people to transfer their content to lower-price devices from other manufacturers.

“This case is about freeing smartphone markets from Apple’s anticompetitive and exclusionary conduct

Apple rejected the accusation saying “we innovate every day to make technology that people love, designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users.

“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. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it”

“This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets”.

The complaint against Apple alleges:

“For many years, Apple has built a dominant iPhone platform and ecosystem that has driven the company’s astronomical valuation. At the same time, it has long understood that disruptive technologies and innovative apps, products, and services threatened that dominance by making users less reliant on the iPhone or making it easier to switch to a non-Apple smartphone.

“Rather than respond to competitive threats by offering lower smartphone prices to consumers or better monetisation for developers, Apple would meet competitive threats by imposing a series of shapeshifting rules and restrictions in its App Store guidelines and developer agreements that would allow Apple to extract higher fees, thwart innovation, offer a less secure or degraded user experience, and throttle competitive alternatives. It has deployed this playbook across many technologies, products, and services, including super apps, text messaging, smartwatches, and digital wallets, among many others.

“This case is about freeing smartphone markets from Apple’s anticompetitive and exclusionary conduct and restoring competition to lower smartphone prices for consumers, reducing fees for developers, and preserving innovation for the future.

The case is expected to last at least a year and possibly two.