Apple Sued by DoJ Due to Antitrust Infringements 

The U.S. Department of Justice (DoJ) is set to sue Apple on Thursday, accusing it of breaching antitrust laws by preventing other tech companies from accessing of iPhone devices and software, according to Bloomberg. 

The lawsuit, expected to be filed in federal court, will escalate the Biden administration’s battles against antitrust among most of the largest U.S. technology companies. The DOJ is already suing Alphabet’s Google for antitrust, while the Federal Trade Commission is pursuing antitrust cases against Meta Platforms and Amazon. 

In parallel, following the news of the DoJ set to sue Apple has had its imapact. Apple’s stock price dropped by as much as 1.4% to $176.10 in after-hours trading. The stock has witnessed a 7.2% decrease in value so far this year, up to the close of trading on Wednesday. 

This is considered the third time in the past 14 years that the DOJ has taken legal action against Apple due to antitrust violations. However, this case is the first to accuse the iPhone maker of illegally maintaining its dominant market position. 

On the other hand, the lawsuit coincides with the second-largest tech company by value in the world, also facing increased scrutiny in Europe over alleged anti-competitive behavior. Thus, it was fined 1.8 billion euros this month for preventing its rivals from offering cheaper deals. Yet, Apple has appealed against this penalty, claiming that regulators failed to prove any credible evidence showing that it has caused harm for consumers. 

Simultaneously, Apple could be subject to a full investigation under the EU’s recently implemented regulations for major tech companies, known as the Digital Markets Act, which took effect earlier this month.  

Rivals have already opposed the new App Store regulations implemented in Europe, arguing that they are likely to result in increased costs for developers. Non-compliance with the new EU regulations could result in significant penalties, amounting to as much as 10% of the company’s global annual revenue or up to 20% for repeated violations. 

The current case was initiated by the department of justice in 2019, under the administration of former President Donald Trump. Nevertheless, the Antitrust Division decided to focus on the dual cases against Google, with the case against Apple coming last. This decision was made after Epic Games, the developer of Fortnite, filed an antitrust lawsuit against Apple in 2020. This case has been progressing through federal courts. 

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