The US filed a lawsuit against Apple Inc. The main target is to make the iPhone user experience more friendly and to increase competition and support that various app developing companies provide.
The US government is saying that apple is making it hard for small companies to compete and this is making apple products more expensive.
Below are listed the few allegations put forth by the department of justice:
1 . The department of justice alleges that Apple is illegally preventing competition by not allowing access to its hardware as well as software.
2. The lawsuit, which is 88 pages long, listed five major areas in which Apple uses its power in the wrong way . These are as follows:
- By blocking innovative apps: The lawsuit says that Apple has blocked many innovative apps that makes it easier for users to switch between different brands.
- Suppressing mobile cloud streaming services: The lawsuit also alleges that the company has prevented the development of cloud streaming apps that allow customers to enjoy quality video games and other cloud based applications.
- Cross platform messaging apps: In this case messages between iPhone and Android are less secure.
- Apple watches are too expensive.
- Limiting third party digital wallets: The suit alleges that Apple has prevented third party apps offering tap to pay functionality.
Apple’s switch to USB charger is also the most obvious change for users.
How does Apple respond to this lawsuit?
The apple said that the lawsuit is undoubtedly wrong on the facts and the law.
The company in a statement said that ‘ We innovate everyday to make technology people love the products that work together, protect people’s privacy , security and create magical experiences for the users .
Not only the US but also many other countries have filed an antitrust lawsuit against apple.The DOJ claims that Apple has used tactics such as blocking innovative new apps.Apple has maintained a monopoly on smart phones in the market.Apple has also harmed the competition with restrictive app store terms .The apple is causing monopoly in the market .
During the press conference Lisa Monaco said that Apple’s effort smoothered the entire industry.The apple is making iPhone and the products on it less useful for consumers . The lawsuit is highly technical especially when it comes to areas like law like antitrust.
The company said it denied the lawsuit’s allegations and they would fight them . Apples actions has wide ranging effects . If anything is not done against apple then it would continue establishing it’s monopoly in the market . For example , apple allows customers to click high quality pictures which are of high clearity but this is not too good in the other smartphones . Along with that the company also gives its own products the access to the hardware that doesn’t allow other companies to use it . Apple has created barriers at make it extremely difficult for both the customers and the developers to venture outside the apple ecosystem.
The European regulations has forced apple to give access to other companies to the iPhone tap to pay hardware chip. But this rule is limited to the European state only .
Generally apple maintains a commision of 30% from the sale from apple stores . Apple in a statement said that the lawsuit is wrong on the facts as the laws . The will definitely defend against it .
One other suit claims that apple has monopolised the smartphone market by the usage of some terms that harm everything from text messages to mobile payments . It has also used its control over the IOS operating system due to which many apps get blocked.
The justice department wants that court should give an order that stops apple from using it’s app store to block the new innovative apps .Other things which can’t be integrated with Apple such as smart watches etc should also be changed .
Many states are against the apple . These are California, maine , Wisconsin, Vermont, Oregon, new york , north dakota , Oklahoma , Hampshire, minnesota,etc.
From a long time apple is answering all the allegations made on it that’s it’s practices are anti competitive.Apples stock fell be 3% on Thursday and the lawsuit was widely anticipated.