Apple Lost $100bn After US Files iPhone Monopoly Lawsuit
Apple stock fell roughly 4% after the US Justice Department slammed the tech giant over an alleged illegal monopoly in the mobile phone market.
Attorneys general from 16 states have joined forces to crack down on the dominant position of the iPhone, saying Apple violated federal law by limiting competition and swaying whole industries to rely on its device.
The lawsuit comes after years of regulatory pressure over Apple’s handful of products which allegedly have been preventing users from getting exposure to competing devices.
The 88-page filing goes on to say that Apple has created an uneven playing field by holding a firm grip over the user experience on the iPhone and has thus “reinforced the moat around its smartphone monopoly.” It added that the company has resorted to “higher prices and less innovation.”
In response, Apple issued a statement defending its business and device suite. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” the troubled tech mainstay said.
“If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect.” Apple controls more than 70% of the premium mobile phone market in the US. If the court rules in favour of the Justice Department, Apple could be forced to break up.
