Apple's Stranglehold on App Market Leads to Antitrust Lawsuit

Apple finds itself at the center of an antitrust lawsuit filed by the US Department of Justice (DOJ) in a New Jersey federal court on March 21.

This lawsuit, backed by sixteen state attorneys general, accuses the tech behemoth of stifling competition and restricting innovation across various sectors, including crypto apps.

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The plaintiffs claim that Apple's stringent App Store guidelines and developer agreements constitute a "monopoly" in the smartphone market.

The core of the argument is that Apple forces developers and users to adopt its payment system, effectively locking in both, promoting a less secure or degraded user experience, and blocking competitive alternatives.

The lawsuit points out that Apple's "shapeshifting rules and restrictions" not only hinder competition in the smartphone market but also echo across other industries, notably impacting financial services and crypto-based applications.

<Apple> frequently uses App Store rules and restrictions to penalize and restrict developers that take advantage of technologies that threaten to disrupt, disintermediate, compete with, or erode Apple’s monopoly power.

One particularly contentious issue is the "Apple tax" — a 30% fee imposed on apps and in-app payments for services or content not developed by Apple.

In addition, Apple's payment system is exclusively designed to support traditional currencies, effectively excluding crypto transactions from the App Store. Consequently, crypto-friendly apps like Damus have faced delisting due to non-compliance with Apple's in-app payment policies.

The DOJ also highlights that developers cannot offer alternative app stores, limiting options for enhancing privacy and security. However, Apple does allow some specialized app stores for business and government users.

The lawsuit also criticizes Apple's control over web apps. Apple requires all iOS web browsers to use its WebKit engine, thereby extending its influence beyond the confines of the App Store.

Apple's defense argues that the lawsuit could set a precarious precedent, potentially leading to excessive government intervention in technology design.

This legal challenge reminds us of the ongoing debates surrounding tech monopolies and market competition and signals a critical moment for the future of app development and distribution.

Apple's co-founder Steve Wozniak is also involved in another legal battle. He filed a lawsuit against YouTube for a series of altered videos that spread on the platform, exploiting Wozniak's image to promote a Bitcoin (BTC) scam.

Aaron S., Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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