New Jersey Joins Forces with Justice Department in Antitrust Lawsuit Against Apple
TRENTON, NJ – The administration of New Jersey Governor Phil Murphy is suing Apple, one of the nation’s largest mobile phone and technology provider.
Attorney General Matthew J. Platkin announced today that New Jersey, alongside the Justice Department and 15 other states, has filed an antitrust lawsuit against Apple. The lawsuit, lodged in the U.S. District Court for the District of New Jersey, accuses Apple of monopolizing the smartphone market, thereby stifling innovation and development in apps and related technologies, in violation of both the Sherman Act and New Jersey law.
According to Attorney General Platkin, Apple’s market dominance is a calculated result of exclusionary and anticompetitive practices. These practices not only maintain its market position but also limit consumer choices across a broad spectrum of products, including apps, payment systems, and smartwatches. The lawsuit points out that Apple’s monopolistic actions have led to consumers paying more for products that are considered inferior, all while Apple amasses significant profits.
The complaint delineates how Apple has managed to secure over 70% of the U.S. performance smartphone market. It highlights the company’s revenue strategies, including taking a 30% cut from developers for app sales and in-app purchases through the Apple App Store. Additionally, it outlines contractual restrictions imposed by Apple on developers, which limit the functionality of apps for iPhone users and restrict developers from conveying crucial information about pricing and purchases to them.
Furthermore, the lawsuit addresses Apple’s manipulation of application programming interfaces (APIs) to hinder the functionality of third-party apps and accessories. This strategy is aimed at discouraging consumers from exploring alternatives to Apple smartphones. The lawsuit also accuses Apple of deliberately declining to improve its offerings or rejecting enhancements that would facilitate customer migration to other mobile devices, thereby suppressing competition across various sectors.
The lawsuit brings to light instances where Apple purportedly compromised privacy and security for financial gains and actively worked to degrade third-party messaging apps’ functionality. Additionally, Apple is accused of blocking or degrading technologies that could reduce switching costs, making it easier for users to opt for different smartphones.
This legal action aims to challenge Apple’s practices and promote fair competition and innovation in the smartphone industry and beyond.