US appeal against Apple for monopoly practices with iPhone

Against the company making the well – known iPhone mobile phones, the U.S. government was charged with creating on the market. Fifteen states of America along with the country’s Justice Ministry have appealed to civil courts against the company “Apple”, accusing it of creating a monopoly on the market. The company that makes mobile iPhones, due to its over-increased sales exercises a kind of monopoly practice resulting in smaller companies and competitors being affected. Apple thus joins the course of its competitors, including Alphabet’s Google, Meta Platforms and Amazon.com, who have received civil appeals from government regulators both former President Donald Trump and President Joe Biden. “Consumers should not pay higher prices because companies violate antitrust laws,” Justice Minister Maryk Garland said in a statement. “If left seamless, Apple will simply continue to boost its monopoly on smartphones”. The Justice Ministry announced that Apple charges up to $1,599 for an iPhone and earns a greater profit than any other company in this industry. Officials also say Apple is behind the scenes charging various of its trading partners—from software development companies to credit card companies and even rivals like Google—in ways that eventually increase prices for consumers and boost Apple’s profit. Since he was a marginal player in the purchase of personal computers, Apple’s business model is based on the additional charge of users for technology products in which the company dictates almost all details of how its devices work and can be used. The Justice Ministry seeks to change this business model by obliging Apple, a company with a market value of $2.7 trillion, to offer users more options on how applications can operate on the devices designed by Apple. The shares of the iPhone manufacturer recorded a 4.1% drop yesterday, Thursday, and closed at $171.37. Apple denied the charges brought by the government. “This lawsuit threatens what we are and the principles that set Apple’s products apart in very competitive markets. If it succeeds, it will prevent our ability to create the kind of technology that people expect from Apple – the point of intersection of the device, software and services,” the company said in a communication. White House assistant spokesman Michael Kikukawa said: “President Biden strongly supports fair and strong enforcement of antitrust laws”. The 88-page lawsuit, filed at the Newark federal court in New Jersey, focuses, according to the Justice Ministry—in whose lawsuit the administrative district of the capital Washington—is also involved, “on the release of smartphone markets from Apple’s behaviour that hits competition.”