What happened
The Justice Department on Thursday filed a massive lawsuit against tech giant Apple, alleging that the company’s “anticompetitive and exclusionary conduct” created a monopoly over the smartphone industry. The suit comes amid broader DOJ scrutiny of the tech industry.
Who said what
Apple “built and reinforced the moat around its smartphone monopoly,” the Justice Department said. Apple’s actions “stifle innovation” and “increase cost for consumers,” Attorney General Merrick Garland added. Apple said the suit is “wrong on the facts and the law” and would “hinder our ability to create the kind of technology people expect from Apple.”
The commentary
It’s a “really big deal to go up and punch someone who is acting like a bully and pretending to not be a bully,” antitrust researcher Dina Srinivasan said. Similar to the government’s landmark late-’90s Microsoft case, the Apple lawsuit is “likely to become a symbol of the Biden administration’s commitment to competition and lowering prices,” CNN said.
What next?
Apple is expected to request that the case be dismissed. If that fails, it’s “unclear what implications the suit would have on consumers,” The New York Times said. The case is “likely to drag out years before any type of resolution.”