The Department of Justice’s antitrust division is flexing its muscle by filing its third tech monopoly lawsuit in four years. The latest lawsuit accuses Apple of violating antitrust law by engaging in behaviors that entrench consumers into their ecosystem and make it challenging to switch, even in the face of high prices and diminished quality. Antitrust experts believe the complaint presents a strong case for consumer harm, which is a crucial aspect that was missing in previous suits against tech giants.
Experts note that the key challenge for the government will be proving Apple’s dominance in the smartphone market, with the lawsuit taking a broader view of Apple’s conduct than previous cases. The lawsuit emphasizes a pattern of illegal behavior by Apple across various products, showcasing how its actions harm consumers. Despite the potential difficulties in proving market power, the choice of venue in New Jersey and strategic case-building tactics reflect the DOJ’s careful approach to the case.
While the possibility of a breakup is uncertain, experts believe injunctions to stop harmful behavior might be a more plausible outcome. The case against Apple is expected to unfold over years, with the government closely monitoring Europe’s approach to inject competition in digital markets through the Digital Markets Act. Ultimately, the outcome of the lawsuit will likely have far-reaching implications for the tech industry and how dominant companies are regulated in the future.
