The U.S. Department of Justice (DOJ) is reportedly preparing to file a lawsuit against Apple Inc. AAPL on Thursday. The lawsuit alleges that the tech giant violated antitrust laws by restricting competitors’ access to iPhone hardware and software features.
What Happened: The DOJ’s lawsuit, expected to be filed in federal court, will be the third antitrust case against Apple in the last 14 years, reported Bloomberg, citing people familiar with the matter. This is the first case accusing Apple of illegally maintaining its dominant position.
The DOJ initiated the current case in 2019 under former President Donald Trump’s administration. However, the antitrust division prioritized cases against Alphabet Inc.’s Google, allowing the lawsuit against Apple to take a back seat as Epic Games Inc. sued Apple for monopolization in 2020.
The lawsuit also represents a heightened effort by the Joe Biden administration to confront the dominant U.S. technology giants on antitrust grounds. The Justice Department has filed a lawsuit against Alphabet Inc.’s Google for alleged monopolistic practices, while the Federal Trade Commission is actively pursuing antitrust cases against Meta Platforms Inc. and Amazon.com Inc.
Why It Matters: The impending lawsuit adds to the global legal challenges Apple faces.
Earlier this month, the company was fined €1.8 billion for allegedly preventing music streaming rivals from offering cheaper deals. Apple is appealing the penalty, arguing that regulators failed to find “credible evidence of consumer harm.”
Under the EU’s new Digital Markets Act, which came into effect this month, Apple could face a full-scale investigation. The Act introduces strict penalties for non-compliance, potentially reaching up to 10% of a company’s annual global revenue.
In January, the Cupertino, California-based tech giant settled a $13.7 million fine with Russia’s Federal Antimonopoly Service for alleged abuse of its dominant market position.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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