Many know and love Apple, and can applaud the company for its major success and innovation throughout the years. Yet the almost $2.75 trillion company may be in trouble as upsets arise about a potential monopoly on its most popular item, the iPhone. The Federal Government has had rising concerns with the major tech companies and wants to include an antitrust lawsuit against Apple, claiming they are responsible for keeping customers reliant on their iPhones, not believing they could easily switch.

The reason Apple has been accused of being a monopoly is how closely it controls the user experience, making it hard to duplicate on another phone. An example of this is ApplePay and the ability to have your iPhone and Macbook/Apple Watch be cohesive. The government in their lawsuit claims this only leads to higher prices and less innovation. Attorney General Merrick B. Garland passionately speaks on how Apple is doing more than just staying ahead of competition, instead they are violating the federal antitrust law and the consumers and developers are the ones suffering. He says that the company itself is relying on exclusionary, anticompetitive conduct.
The Justice Department has been investigating Apple for a while now, building a large case on their entire existence as a company. They additionally have the right under the law to ask for a structural change in the company as the court decides its thoughts on the subject. However, some argue that all companies are allowed to promote and favor what they create, so the government will have to be extra specific for Apple.
Apple is trying to fight back by saying that they have these practices to ensure security, yet many are skeptical. The lawsuit will ask the company to stop engaging in the current practices of blocking cloud-streaming apps, undermining messages across smartphone operating systems (creating the green bubbles when texting someone with an Android), and preventing digital wallet alternatives. Many fear that this may hinder Apple's reputation, and stop them from making what people expect them to. Apple is attempting to file a motion to dismiss the case in the next 60 days and continues to argue that people chose not to switch phones out of their loyalty. Additionally, Apple is trying to defend itself by highlighting how many new businesses were able to open from their App Store.
In Econ, we have recently learned a lot about monopolies and the barriers of entry that come with them. I agree that many people do believe there is no comparable phone companies, which isn't true, especially with how advanced technology is. Also, with Apple creating the price points and making them so high, many consumers believe they have to pay for great quality.
This isn't the first time this has happened, and in the past the government has felt the need to put government regulations on other big tech companies such as Microsoft, making sure they don’t have too much market power. So, what do you guys think is Apple creating a Monopoly?
Sources:
https://www.nytimes.com/2024/03/21/technology/apple-doj-lawsuit-antitrust.html?ugrp=u&unlocked_article_code=1.eU0.QC5G.v0IcFUfnMIDz&smid=url-share
https://www.cnn.com/2024/03/21/tech/america-apple-monopoly/index.html
https://www.justice.gov/opa/pr/justice-department-sues-apple-monopolizing-smartphone-markets
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