Apple – Source: Scott Olson / Getty
The Department of Justice is alleging tech giant Apple is gating keeping the smartphone world and accuses them of having a Monopoly.
Apple might be the world’s richest company, but as the saying goes, more money, more problems. The latest issue for the tech giant comes from the Department of Justice who alleges the iPhone maker could be running a Monopoly on the smartphone business.
According to TMZ, the DOJ has filed a new lawsuit claiming Apple is gatekeeping the entire industry and wants answers.
“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.” the lawsuit states.
Also, the DOJ alleges the company is using its App Store as a weapon within the industry and against its competitors. If you subscribe to any services via the App Store the platform takes a cut.
The numbers quickly add up to build a case that isn’t in the favor of the iPhone maker.
“Rather than respond to competitive threats by offering lower smartphone prices to consumers or better monetization 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.” the lawsuit continues” It has deployed this playbook across many technologies, products, and services, including super apps, text messaging, smartwatches, and digital wallets, among many others.”
Allegedly you can’t become the biggest tech company in the world playing nice with others. However, perception is reality and if the DOJ can prove Apple was acting with malicious intent it could get ugly. The DOJ believes it violates federal law if its products only work with other Apple products.
It doesn’t take a genius to understand the ecosystem of products working together is the biggest selling point.
