The US Government has filed an antitrust case against Apple. The lawsuit alleges that the Cupertino company has monopolized the smartphone industry.

The case was jointly filed by the Justice Department, 16 States, and the District of Columbia, in the U.S. District Court for the District of New Jersey.

This isn't something out of the blue, as we have previously reported, the U.S. Department of Justice has been preparing an antitrust case against the Electronics giant over the past few months. It had held discussions with the company before finalizing the lawsuit.

Apple ran into legal trouble at the end of 2023, when the U.S. International Trade Commission banned the company from importing and selling the Apple Watch Series 9 and Ultra 2 in the U.S. The Commission found Apple guilty of violating patents related to the SpO2 sensor (pulse oximeter), which belonged to Masimo. The ban however was short-lived, as Apple was allowed to sell the wearables once again, with a catch, it had to disable the SpO2 sensor's functionality, so you couldn't use it to measure blood oxygen levels, even though the hardware for the feature existed.

The tech mogul's troubles were just beginning, as it had to open up the iOS ecosystem to third-party app marketplaces in the European Union region. However, the company's compliance with the Digital Markets Act has come under scrutiny due to several limitations that it has imposed for app developers, and third-party app stores.

US Justice Department sues Apple in antitrust case

Now, the US Govt has claimed that Apple has selectively imposed restrictions that prevent users from switching from its devices. It also says that there are limitations for the functionality of third-party apps, which gives Apple's own apps an unfair advantage over the competition. The complaint alleges that Apple has undermined messaging across operating systems by excluding its own apps from rival platforms, and that this makes it less secure and less innovative for users.
This is seen as one of the reasons that the company has made it hard for users to leave iPhone, as many iOS apps are not available on Android. The lawsuit alleges that Apple is in violation of Section 2 of the Sherman Act, and users its monopoly power to extract high prices from consumers, developers, etc.

The antitrust case also points out that Apple blocks cloud-streaming apps that allow users to stream apps and games. To be fair to Apple, it did open up the market recently to allow cloud-gaming platforms, so services like Xbox's Game Pass Ultimate and Nvidia's GeForce Now can be used on iPhone and iPad.

Apple's failure to provide tap-to-pay (Apple Pay) functionality for third-party digital wallets is also being scrutinized. The lawsuit points out that Apple's restrictions also affect web browsers, video communication, location services, advertising and other services.

Another argument made by the Justice department targets Apple's restrictions for third-party smartwatches. Apple does not allow other OEMs to access the APIs required for a watch to read/write fitness data like the Apple Watch can, third-parties have limited access to the data. This is an unfair restriction that stifles the competition.

The company has reportedly claimed that it tried to make the Apple Watch compatible with Android phones, but failed to find a way to do so. I don't buy this argument. Apple has an Android app for Apple Music, which as you know is a subscription-based service. It shows that the company can, and will provide an app for Android devices, if there is an incentive for it. So, why didn't Apple create Android apps for Apple Watch and Health? Well, you could argue that if it had done so, Android users would buy the wearable, but they won't buy an iPhone. By keeping the Watch exclusively compatible with iPhones, it has created an artificial market for the wearable and the iPhone, which is a monopoly.

You can read about the 88-page lawsuit on the US Justice Department's website.