US Government poised to sue Apple in antitrust showdown

US government files antitrust lawsuit against Apple over iPhone features. Apple faces legal challenges in Europe. Recent fines and ongoing cases indicate global regulatory pressure.

The American multinational corporation, Apple, is at risk as the US government looks to file a lawsuit against them in the federal court on the grounds of antitrust, arising from their refusal to let other companies access certain features of the iPhone. The news of the lawsuit had an adverse effect on the stock prices of Apple, which dropped a little bit.

Due to this very similar reason, companies like Google, Meta and Amazon are also in the crosshairs of the Government. This won't be the first time that the government sues one of the tech giants, specifically Apple for not playing by the rules however, the accusation of keeping their power unfairly has never been given before, unlike this time.

Apple's technology is accused of trapping their consumers and being unfair as their products are said to be more compatible within the Apple environment only. Even their financial system is targeted which is said to block other financial service providers. Other brands in the markets that sell similar products or services are said to suffer as they are not allowed to access certain features when linked with an IOS device.

Apple, as reported by The New York Times said in their defence that its “approach has always been to grow the pie and create more opportunities not just for our business, but for artists, creators, entrepreneurs and every ‘crazy one’ with a big idea.”

Apple faces legal challenges beyond US borders

The US is not the only place where the unfair practices of Apple are scrutinized as there is an ongoing case of Apple in Europe also, as they were recently fined for not letting other music streaming platforms offer better deals than theirs which led to a fine of approximately $1.96 billion. Apple's competitors have also raised concerns about how the App Store is being operated which might also lead to an investigation if suspicion of not complying with the new Digital Markets Act of Europe is found.

Tim Cook in Brussels EU Privacy Conference — Tim Cook in Brussels (Image via EU Privacy Conference)

The lawsuit of Epic Games against Apple in 2020 was somewhat similar as they accused the American tech giant of being dominant in the market. However, Apple was proven not guilty, making the claims of Epic Games null and void.

This lawsuit against Apple seems to come just when they are going to settle another class action lawsuit of $450 million which was filed against the CEO of Apple, Tim Cook, who was accused of hiding the rapidly descending iPhone demand in China. Apple Inc. will be looking to fight and defend to prove itself innocent in all home as well as abroad legal troubles.

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