The Justice Department plans to sue Apple Inc. on Thursday for breaking antitrust laws by barring rivals from utilizing iPhone hardware and software.
According to sources, the Biden administration's antitrust fights against most of the largest US technology companies would intensify with the federal court filing. The Justice Department is suing Alphabet Inc.'s Google for monopolization, while the FTC is suing Meta Platforms Inc. and Amazon.com Inc. for antitrust.
Apple and the Justice Department did not reply to calls for comment. People acquainted requested anonymity to discuss a confidential subject. The news sent Apple shares down 1.4% to $176.10 late. They were down 7.2% this year through Wednesday (close).
The approaching action will be the Justice Department's third antitrust lawsuit against Apple in 14 years, but the first to accuse it of illegally retaining its dominating position.
The case comes as Apple faces intense European investigation for anticompetitive practices. For blocking music streaming competitors' lower prices, the business was fined €1.8 billion this month. Apple is appealing the penalty, saying regulators found no “credible evidence of consumer harm.”
The EU's new Big Tech legislation, the Digital Markets Act, entered into effect this month, and the corporation may be investigated. Rivals have criticized new European App Store restrictions, saying they will raise developer prices
Penalties for violating the EU's new standards might reach 10% of a company's global revenue or 20% for repeat offenders.
The Justice Department launched the newest case in 2019 under former President Donald Trump. While Epic Games Inc. sued Apple for monopolization in 2020 and the case proceeded through the federal courts, the antitrust division prioritized twin cases against Google.
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