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

The technology giant Manzana faces the biggest legal battle since its founding. The United States Department of Justice sued him for illegal monopoly. The accusation affects not just a certain aspect, but the entire ecosystem of the Apple company.

“Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses and traders, among others”, states the US State.

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

The action, supported by 88 pages, denounces the hermetic technological system that limits, for example, the availability of “super applications”, meaning that users have to remain on iOS, as they cannot find them on other systems. The indictment also mentions how their cellphone hardware restricts certain types of video games or imaging 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 In turn, he stated that demand affects its essence and the principles that distinguish its products in highly competitive markets.

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

“If successful [la demanda]“It would harm 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 a long time and may be rejected because it affects 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’s happened before. Below, we mention some of the most emblematic cases.

Anti-competitive practices in the search market

In 2020 it was even Google sit in the dock. The process revolved around the dominant position of the internet giant (it has a share of over 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 pursuit 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 ongoing.

Anticompetitive practices in e-commerce

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

TO LOOK: US government sues Apple for creating 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 sites by controlling a key piece of online space, an area on its site known as the “Buy Box” or “Featured Offer.” . . If a product is offered for less on another site, Amazon removes that seller’s “Featured Offer” buttons 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’s distribution services is a condition for a product to be sent quickly and free of charge to customers who subscribe to Amazon’s Prime membership program.

Featured social networks

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 company’s size and 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, acting against competition. The company is accused of illegally acquiring competitors such as Instagram or WhatsApp.

These legal battles against technology giants like 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

jack

I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.