Justice Department files antitrust suit against Apple

The Justice Department filed a federal antitrust lawsuit against Apple
(AAPL), alleging that the tech giant illegally maintains its dominance
over its iPhone ecosystem by boxing out competing services from other
companies.

Apple said it would fight the lawsuit, which it said "threatens who we
are and the principles that set Apple products apart in fiercely
competitive markets. If successful, it would hinder our ability to
create the kind of technology people expect from Apple."

A victory for the US in this case "would also set a dangerous
precedent, empowering government to take a heavy hand in designing
people’s technology," Apple added in its statement.

Apple's stock was down roughly 3% following news of the lawsuit, which
the Justice Department filed with 16 state attorneys general.

The filing sets up yet another confrontation between the US government
and a Silicon Valley icon as the Biden administration tries to rein in
Big Tech's power.

The Department of Justice is suing Google (GOOG, GOOGL) over antitrust
allegations, while the Federal Trade Commission is suing Amazon (AMZN)
and Facebook (META) alleging they also violate antitrust laws.

Apple generates the bulk of its cash through the sale of its wildly
popular iPhone, which accounted for $200.6 billion of the company's
$383.3 billion in total revenue in 2023. But Apple's services and
hardware that tie into the iPhone are also incredibly lucrative.

The company's wearables, home, and accessories business, which includes
its Apple Watch and AirPods sales, generated $39.8 billion last year,
while its growing services business, which includes subscriptions for
things like Apple Music+ and App Store sales, brought in $85.2 billion.

The DOJ's suit comes just weeks after the European Commission (EC)
fined Apple $2 billion for allegedly breaking competition laws in the
bloc. The EC alleged the company illegally wielded its dominance to the
detriment of its rivals in the market for the distribution of music
streaming apps.

The Justice Department suit is just the latest headache for Apple,
which is off to a rough start to 2024.

Shares of Apple are down 7% year-to-date, as the company struggles with
slowing iPhone sales in China, its third-largest market. Apple also
lost its title of the world's most valuable company to rival Microsoft
(MSFT).

https://finance.yahoo.com/news/justice-department-files-antitrust-suit-against-apple-145514025.html

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"The envious man thinks that if his neighbor breaks a leg, he will be
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