Apple in the crosshairs: the times the United States attacked technology companies for monopolistic practices

The technology giant Manzana faces the largest legal battle since its founding. The United States Department of Justice has sued it for illegal monopoly. The accusation affects not only a certain aspect but the entire ecosystem of the apple firm.

“Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses and merchants, among others,” says the North American State.

LOOK: United States lawsuit against Apple: what will happen to the company’s closed ecosystem?

The lawsuit, supported by 88 pages, denounces the technology company’s hermetic system that limits, for example, the availability of “super applications”, resulting in users having to stay on iOS, since they cannot find them on other systems. The indictment also mentions how the hardware of their cell phones restricts certain types of video games or image technologies that are not compatible with their processors. The lack of compatibility is clearly seen in the Apple Watch, the company’s smart watch, which cannot be used on other operating systems.

Manzana For its part, it has said that demand affects its essence and the principles that distinguish its products in fiercely competitive markets.

“In Manzana“We innovate every day to make technology that people love: we design products that work perfectly together, we protect people’s privacy and security, and we create a magical experience for our users,” the company said in a statement.

“If it is successful [la demanda]“It would hinder our ability to create the kind of technology people expect from Apple, where hardware, software and services intersect.”

The truth is that this fight in the courts will last for a long time and could be dismissed for affecting the company’s commercial freedom, something defended by the US Constitution itself.

However, this is not the first time that the US has sued technology companies for monopolistic practices. It has happened before. Below, we mention some of the most emblematic cases.

Anti-competitive practices in the search market

In 2020 it was up to Google sit in the dock. The lawsuit revolved around the dominant position of the internet giant (it has a share of more than 90%) to favor its own products and services, harm its competitors and reduce innovation in the market.

“Google abuses its monopoly power to harm website publishers and advertisers who dare to use competing advertising technology products in search of higher quality or lower cost,” the indictment states.

According to the lawsuit, Google’s plan was “simple but effective.” On the one hand, it neutralized or eliminated real and potential competitors through a series of acquisitions; On the other hand, it exercises its advertising dominance by forcing publishers and advertisers to use its products.

The trial against the technology company began in 2023 and is still in process.

Anti-competitive practices in electronic commerce

The Federal Trade Commission (FTC) denounced Amazon in 2023 for controlling its competitors’ prices and coercing sellers to use their own services if they want to be successful.

LOOK: US government sues Apple for creating a monopoly in the smartphone market

Regarding the first point, the FTC noted that the company discouraged third-party sellers on its site from offering discounts on other websites by controlling a key piece of online space, an area on its site known as “Buy Box” or “Featured Offer”. If a product is offered for less on another site, Amazon removes the “Featured Offer” buttons for that seller on its site and replaces them with a less attractive design, causing the seller’s sales to plummet.

Regarding the second point, the commission states that the use of Amazon distribution services is a condition for a product to be sent quickly and free to customers subscribed to Amazon’s Prime membership program.

Social networks in the spotlight

The FTC and a group of prosecutors from 48 of the country’s 50 states filed a lawsuit against Facebook in 2020 to reduce the size of the company and its market position.

In the same vein as previous cases, the lawsuit accused Mark Zuckerberg’s company of maintaining a monopoly in the social media sector for years by acting against competition. The company is accused of illegally acquiring competitors such as Instagram or WhatsApp.

These legal battles against tech giants such as Google, Amazon and Facebook illustrate a growing trend towards regulation and scrutiny of business practices in the sector.

The cases above show how these companies have been accused of abusing their dominant market position to stifle competition and limit innovation, which in turn raises important questions about commercial freedom and the concentration of power in the digital age.

Source: Elcomercio

Callum

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