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Apple sued by US Department of Justice

Skærmbillede 2024-03-22 112543
Translate from : Apple sagsøgt af den Amerikanske stat
The US Department of Justice and 15 states are suing Apple, accusing them of monopolizing the smartphone market and driving up prices. They argue that Apple's business model hurts smaller competitors and consumers.
By Maria
22 mar. 2024 11:28 am
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As expected earlier this week, the US Department of Justice and 15 states filed a lawsuit against Apple on Thursday, March 21, as the government intensifies its efforts against the major technology companies. The accusations are that the iPhone maker has monopolized the smartphone market, harming smaller competitors and driving up prices. The Justice Department alleges that Apple charges up to $1,599 for an iPhone and makes bigger profits than anyone else in the industry.

Officials also said that Apple charges various business partners -- from software developers to credit card companies and even competitors like Google -- secretly in ways that ultimately raise prices for consumers and boost Apple's profits. Since its days as a marginal player in the personal computer market, Apple's business model has been based on charging users a premium for technology products, with the company largely dictating every detail of how the device works and can be used.

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The Justice Department wants to break that business model by forcing Apple, which has a market cap of more than $2.7 trillion, to offer users more choices about how apps can draw on the hardware Apple designs. Apple denied the government's accusations, saying , "This lawsuit threatens our business and the principles that set Apple products apart in highly competitive markets. If successful, it will hamper our ability to create the kind of technology people expect from Apple—where hardware, software and services intersect."

Apple shares fell 4.1% to $171.37 at the close of trading on Thursday. President Biden's assistant press secretary Michael Kikukawa said: "President Biden strongly supports fair and effective enforcement of the antitrust laws."

Apple, which this year has added nearly $942 billion, or 46%, to its market capitalization, claims it is now valued at over $3 trillion. Only 6 countries - USA, China, Japan, Germany, UK and India - have a gross domestic product greater than Apple's total market capitalization. Apple shares rose further after it reported higher-than-expected earnings and profit in the March quarter.

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