The iconic Apple logo perches atop an Apple store in La Jolla, California, December 17, 2019. (REUTERS/Mike Blake/File Photo)
In a significant escalation of legal challenges facing Apple Inc., four additional U.S. states have allied with the Justice Department’s antitrust lawsuit, accusing the tech giant of monopolizing the smartphone market. On Tuesday, officials from Indiana, Massachusetts, Nevada, and Washington announced their participation in the ongoing litigation.
Originally filed in March, the lawsuit initially saw the backing of 15 states and the District of Columbia. This coalition contends that Apple exploits its dominant market position to extract excessive fees from a wide array of stakeholders, including consumers, app developers, content creators, and small businesses.
Central to the lawsuit are allegations that Apple enforces restrictive contracts and denies essential access to developers, thereby maintaining an illegal monopoly. The Justice Department argues that Apple’s pricing strategy—charging up to $1,599 for an iPhone—and hidden fees imposed on various partners inflate costs for end users. These partners range from software developers and credit card companies to competitors like Google’s parent company, Alphabet Inc.
Apple, on the defensive, plans to request the case’s dismissal by a federal judge in New Jersey, maintaining that it contends with robust competition from well-established industry rivals. However, the company has yet to provide an immediate comment regarding the latest legal developments.