Apple Faces Anticompetitive Lawsuit Allegations

Apple Faces Major Lawsuit Over Alleged Anticompetitive Practices

Cupertino, CA – May 11, 2025 – Tech giant Apple Inc. is embroiled in a high-stakes legal battle as the U.S. Department of Justice (DOJ) and multiple states file a sweeping antitrust lawsuit against the company, accusing it of stifling competition and maintaining an illegal monopoly in the smartphone market.

The lawsuit, filed in federal court, alleges that Apple has engaged in anticompetitive behavior by imposing restrictive rules on its App Store, limiting third-party developers, and blocking rival companies from accessing key iPhone features. Prosecutors argue that these practices have harmed consumers by driving up prices and reducing innovation.

'Apple has maintained its dominance not through superior products, but by excluding competitors and locking users into its ecosystem,' said Attorney General Merrick Garland in a press conference. 'No company, no matter how powerful, should be allowed to throttle competition unlawfully.'

Key Allegations in the Lawsuit

App Store Monopoly – The DOJ claims Apple forces developers to use its payment system, charging up to 30% commissions, while blocking alternative app marketplaces.

Suppressing Competitors – The lawsuit cites Apple’s restrictions on messaging interoperability between iPhones and Android devices, as well as limitations on competing smartwatch and digital wallet services.

Predatory Contracts – Apple allegedly imposes strict terms on carriers and developers, preventing them from promoting rival services.

Apple’s Response

Apple has denied the allegations, calling the lawsuit 'misguided' and vowing to vigorously defend itself. In a statement, the company said, 'This lawsuit threatens our ability to create the kind of technology people expect from Apple—where hardware, software, and services work seamlessly together.'

Legal experts suggest the case could take years to resolve but warn that a ruling against Apple could force major changes in its business model, including opening the iPhone to third-party app stores and reducing fees.

The lawsuit marks the latest in a series of regulatory challenges for Apple, which has faced similar scrutiny in the EU, resulting in the Digital Markets Act forcing Apple to allow sideloading and alternative payment systems.

As the case unfolds, investors are watching closely—Apple’s stock dipped 2% following the announcement. The outcome could reshape not just Apple’s future, but the entire tech industry.

—More updates to follow.

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