Arizona AG joins monopoly lawsuit against Apple

Arizona Attorney General Kris Mayes joined 15 other state and district attorney generals and the U.S. Justice Department in filing a lawsuit against Apple accusing the company of attempted monopolization of smartphone markets, according to a press release from the attorney general Thursday.

“Apple has used its monopoly power to block competition, stifle innovation, and extract higher prices from consumers,” Mayes said in the press release. “No company, even one as big as Apple, is above the law. Apple’s anticompetitive behavior has violated antitrust law and harmed consumers.

“Holding Apple accountable is critical to ensuring a competitive market where innovation can flourish and consumers can access a wide range of affordable products and services. Fair competition protects consumer choice and encourages innovation, leading to better products and services for everyone,” Mayes continued.

Apple’s net income exceeds the gross domestic products of more than 100 countries, the press release stated. In fiscal year 2023, Apple generated annual net revenues of $383 billion and net income of $97 billion.

The release said the complaint alleged Apple illegally maintains a monopoly over smartphones by “selectively imposing contractual restrictions” and “withholding critical access points from developers.” Apple allegedly undermines apps, products and services that could make a user less reliant on the iPhone, the release said.

According to USA TODAY, Apple issued a statement saying the lawsuit

+13.5 threatened the company’s ability to provide innovative technology. A spokesperson for Apple said in the statement that the lawsuit was “wrong on the facts and the law” and that Apple would “vigorously defend against it,” according to USA TODAY.

Complaints against Apple

The press release stated these reasons for the complaint against Apple:

Apple disrupted the growth of broadly functional apps that would make it easier for consumers to switch between competing smartphone platforms.

Apple blocked the development of cloud-streaming apps and services so consumers can not enjoy cloud-based applications without having to pay for “expensive smartphone hardware.”

Apple has made cross-platform messaging less innovative and less secure for users, so customers have to keep buying iPhones.

Users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones due to limited third-party smartwatch options.

Apple has prevented third-party apps from offering tap-to-pay.

What happens if lawsuit succeeds?

USA TODAY listed the following possible changes iPhone users could see if Apple loses the lawsuit.

App Store flexibility could mean better user experience and service. More developers submitting apps. More options for third-party smartwatches.

More contactless payment options. Expanded browser options.