The U.S. Department of Justice has decided to sue Apple for monopoly rules in its apps market that have stifled competition and stifled innovation. On March 21, 2024, the Justice Department filed a complaint in a New Jersey federal court, supported by 16 state attorneys general, alleging that Apple has a monopoly in the smartphone market and uses this power to "force" developers to use its payment system to lock users and developers into its platform.
Change of shape" rules and restrictions
Apple's App Store rules and restrictions are described as "shape-shifting" by the Department of Justice, which alleged that the rules allow the company to take higher fees, stifle innovation, offer a less secure or degraded user experience, and hold back competing alternatives. These rules could be the reason why many cryptocurrency-based apps offer only limited functionality on iOS devices.
Impact on competition and innovation
The Justice Department said Apple's anti-competitive conduct limits competition in the smartphone market and impacts other markets, such as the apps and services market. Apple's fees and payment systems are compatible only with fiat currency and have blocked the use of cryptocurrency in apps or made it economically unviable for a cryptocurrency-based app to offer in-app purchases. If the lawsuit is successful, Apple could be forced to modify its rules and restrictions to allow greater competition and innovation in the relevant markets.
Conclusion: Lawsuit against Apple for monopolistic practices
The U.S. Department of Justice has sued Apple over monopoly rules that have stifled competition and innovation in the smartphone and app markets. Apple's App Store rules and restrictions are described as "shape-shifting" and have been used to take higher fees, stifle innovation, offer a less secure or degraded user experience, and hold back competing alternatives. If the lawsuit is successful, Apple could be forced to modify its rules and restrictions to allow greater competition and innovation in the markets concerned.
