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22:06 GMT
WASHINGTON, March 21 (KUNA) -- The US Justice Department and 16 other state and district attorneys general have filed a civil antitrust lawsuit against the tech giant Apple for monopolization or attempted monopolization of smartphone markets in violation of Section 2 of the Sherman Act.
"Apple's broad-based, exclusionary conduct makes it harder for Americans to switch smartphones, undermines innovation for apps, products, and services, and imposes extraordinary costs on developers, businesses, and consumers," the Department of Justice said in a statement on Thursday.
The complaint, filed in the US District Court for the District of New Jersey, alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from, developers.
"Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers. Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others," reads the statement.
Through this monopolization lawsuit, the Justice Department and state Attorneys General are seeking relief to restore competition to these vital markets on behalf of the American public.
"Consumers should not have to pay higher prices because companies violate the antitrust laws," said Attorney General Merrick B. Garland.
"We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly."
Garland vowed that the Justice Department will vigorously enforce antitrust laws that protect consumers from higher prices and fewer choices.
"That is the Justice Department's legal obligation and what the American people expect and deserve," he said.
Deputy Attorney General Lisa Monaco echoed a similar view.
"No matter how powerful, no matter how prominent, no matter how popular - no company is above the law," said Monaco. "Through today's action, we reaffirm our unwavering commitment to that principle."
As alleged in the complaint, Apple has monopoly power in the smartphone and performance smartphones markets, and it uses its control over the iPhone to engage in a broad, sustained, and illegal course of conduct.
This anticompetitive behavior is designed to maintain Apple's monopoly power while extracting as much revenue as possible. The complaint alleges that Apple's anticompetitive course of conduct has taken several forms, many of which continue to evolve today.
Apple disputed the allegations in a statement.
"This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets," the company said.
"It would also set a dangerous precedent, empowering government to take a heavy hand in designing people's technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it." (end)
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