The U.S. government is suing Apple in court, alleging that Apple is using its monopoly power over the iPhone to prevent developers from offering better iPhone app alternatives, driving up costs for consumers.

The antitrust lawsuit was filed in New Jersey, where the attorneys general of 16 states joined the U.S. Department of Justice. The government argues that because of Apple's actions, iPhone owners have no choice but to obtain the app through Apple-approved channels. As a result, it is difficult for them to switch to other mobile platforms.

"Consumers should not have to pay higher fees because a company violated antitrust laws," said U.S. Attorney General Merrick Garland in a statement announcing the lawsuit. We argue that Apple has maintained its monopoly power in the smartphone market not simply to gain a competitive advantage, but because it has violated federal antitrust laws. If left unchecked, Apple will continue to strengthen its smartphone monopoly."

The company's own statement also states that "Apple's monopoly in the smartphone market has been undermined by the federal antitrust laws.

No one would dispute that Apple has a strict level of control over what apps can and cannot be included on its smartphones. In the past, the company has argued that its policies are necessary to prevent viruses and scams from unreviewed apps.

"This lawsuit threatens our own and the principles that make Apple products stand out in a competitive marketplace," Apple said in a statement. 'If successful, this lawsuit will hinder our ability to create the technology that people expect from Apple at the intersection of hardware, software, and services.' It would also set a dangerous precedent of giving the government greater power to design people's technology. 9]

Apple's App Store practices are under scrutiny at home and abroad. In addition to the DOJ's antitrust lawsuit, European Union regulators have taken aim at Apple's App Store and passed the Digital Markets Act. As a result, Apple now allows iPhone owners in EU countries to sideload apps from third-party stores, although some restrictions remain. This feature was released in the recent iOS 17.4 update.

It is too early to determine whether the U.S. antitrust lawsuit may force a similar move in this country. The lawsuit will take time and Apple will fight it," said Avi Greengart, principal analyst at Techsponential. Thus, in the short term, there will be no change to the App Store or Apple's business."

In its complaint (available in PDF), the government alleges that Apple's actions prevented app makers from creating apps that would make it easier to switch to other platforms. It also claims that Apple interfered with the development of cloud streaming apps and services, eliminated cross-platform messaging apps, and prevented third-party apps from offering tap-to-pay functionality. iPhone as well as Apple's policy of They also allege that Apple's policy has degraded the functionality of smartwatches other than the Watch.

"We believe this lawsuit is wrong both factually and legally and will vigorously defend against it," Apple said in a statement.

No announcement has yet been made as to when this lawsuit will be brought to trial." These lawsuits are not a slam dunk; before the government can prove harm, it must define the market in such a way that Apple has a monopoly in the first place," Greengart said.

"Apple's current market share in smartphones is high, but not overwhelming, and competition certainly exists.

In Apple's most recent quarter, last December, the company recorded $69.7 billion in iPhone-related sales, which accounted for 58% of Apple's total revenue.