In This Article:
Apple (AAPL) faces mounting regulatory pressures from both sides of the Atlantic: Department of Justice (DOJ) officials filed an antitrust lawsuit while European Union (EU) regulators probe Apple and other Big Tech companies for violating its Digital Markets Act.
Sixteen US attorneys general are joining the DOJ suit alleging Apple's practice of creating a monopoly in the smartphone and digital app store markets. New Jersey Attorney General Matt Platkin — who is among the state attorneys general pushing for this case — breaks down the consumer harm Apple's anticompetitive methods have done:
"What we lay out is a pattern that Apple has engaged in of using its market share to restrict and exclude business practices in a way that stifles innovation and makes it harder for consumers to leave the iPhone platform. And as a result of that, it has driven up significantly its own profits and the cost of the products to consumers, so that now in 2024, people are paying over $1,500 for an iPhone, that if you adjust the 2007 price of an iPhone for inflation, it would only be $450."
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
AKIKO FUJITA: Well, Apple's facing big antitrust lawsuits both here in the US and across the pond, with the Department of Justice here claiming that it is monopolizing the smartphone market, particularly when it comes to its App Store controls. 16 attorney generals joining the Justice Department in bringing the case forward, including our next guest, New Jersey Attorney General Matt Platkin.
Good to talk to you today. Let me just have you walk you through your case here. I'm looking at the statement you put out saying specifically that Apple is in violation of the Sherman Act with its exclusionary and anti-competitive practices. What specifically is anticompetitive of the way Apple operates?
MATT PLATKIN: Sure. Well, thank you for having me. I think as we lay out in the complaint, and I'm honored to join the Department of Justice and, as you said, 15 other states in filing this complaint last week, what we lay out is a pattern that Apple has engaged in of using its market share to restrict and exclude business practices in a way that stifles innovation and makes it harder for consumers to leave the iPhone platform.
And as a result of that, it has driven up significantly its own profits and the cost of the products to consumers. So that now in 2024, people are paying over $1,500 for an iPhone that if you adjust the 2007 price of an iPhone for inflation, it would only be $450.