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Ever feel like smartphone prices are a little too high? So does the DOJ — and they’re taking a major tech company to court about it. Antitrust litigation has enjoyed a healthy upswing under Biden and this bite at Apple seems to maintain that momentum. From Reuters:
The U.S. Department of Justice and 15 states on Thursday sued Apple (AAPL.O), opens new tab as the government cracks down on Big Tech, alleging the iPhone maker monopolized the smartphone market, hurt smaller rivals and drove up prices.
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“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland said in a statement. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”
In case you’ve been out of the smartphone market, some iPhones retail for around $1600. And while some of the profit goes to R&D, it can’t be that much when most unveilings of iPhone models include stuff that Samsung has had for years now. The DOJ alleges that the increased profits Apple is seeing from sales stems from design choices that ultimately harm consumers:
[T]he U.S. alleges Apple made it more difficult for competing messaging apps and smartwatches to work smoothly on its phones. They also allege that Apple’s app store policies around streaming services for games have hurt competition.
It’s one thing to have a product that’s better than something else on the market. But your phone being better because the company is actively making other products worse behind the scenes doesn’t really scream free market.
Apple Accused Of Monopolizing Smartphone Markets In US Antitrust Lawsuit [Reuters]
Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s. He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who cannot swim, a published author on critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at cwilliams@abovethelaw.com and by tweet at @WritesForRent.
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