United States v. Apple | |
---|---|
Court | United States District Court for the District of New Jersey |
Full case name | United States of America, State of New Jersey, State of Arizona, State of California, District of Columbia, State of Connecticut, State of Maine, State of Michigan, State of Minnesota, State of New Hampshire, State of New York, State of North Dakota, State of Oklahoma, State of Oregon, State of Tennessee, State of Vermont, and State of Wisconsin v. Apple Inc. |
Court membership | |
Judge sitting | Julien Neals |
United States, et al. v. Apple Inc. is a lawsuit brought against multinational technology corporation Apple Inc. in 2024. The United States Department of Justice (DOJ) alleges that Apple violated antitrust statutes. [1] [2] The lawsuit contrasts the practices of Apple with those of Microsoft in United States v. Microsoft Corp. , and alleges that Apple is engaging in similar tactics and committing even more egregious violations. [3] This lawsuit comes in the wake of Epic Games v. Apple and the enforcement of the Digital Markets Act in the European Union. [4]
Beginning in the 2010s, concerns surrounding the market power of the "Big Tech" companies (Amazon, Meta Platforms, and Google) began to mount in the United States. [5] The DOJ had previously sued Apple on two occasions: on e-book prices and over alleged collusion to depress employee salaries with other tech companies. [6]
In 2020, the Democratic majority staff of the House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law released a report accusing Apple and other Big Tech companies of unlawfully wielding monopoly power. [7] The filing of United States v. Apple followed the launch of federal antitrust suits against Google (2020 and 2023), Meta (2020), and Amazon (2023). [8]
In 2020, Epic Games launched an antitrust lawsuit against Apple that challenged the company's practice of preventing apps on the App Store from offering alternative in-app purchase options. [9]
In June 2019, Reuters reported that the Federal Trade Commission agreed to give the Department of Justice jurisdiction in investigating Apple. [10] Then-attorney general William Barr stated in December that he intended to file a lawsuit against Apple the following year. The Department of Justice contacted several developers, including the chief executive of the parental control service Mobicip, Suren Ramasubbu; Mobicip was removed from the App Store in June 2018, after the company announced a screen time feature with parental controls in iOS 12. [11]
In a press conference, the US Attorney General Merrick Garland made reference to the 30% "Apple Tax", criticized iMessage's "Green Bubbles", and called out the lack of NFC access for 3rd party banking apps. [12] According to the documents filed by the Attorneys General, the key categories of Apple artificially restricting competition were: [13]
Assistant Attorney General Jonathan Kanter stated United States v. Microsoft Corp. "paved the way for Apple to launch iTunes, iPod and eventually the iPhone", and that this new suit will “protect competition and innovation for the next generation of technology.” [14]
The case was initially set to be overseen by judge Michael E. Farbiarz until he recused himself on April 10, 2024. Judge Julien Neals became the sitting judge on the case in his absence. [15]
On August 1, 2024, Apple filed a motion to dismiss the case. [16]
The multinational technology corporation Apple Inc. has been a participant in various legal proceedings and claims since it began operation and, like its competitors and peers, engages in litigation in its normal course of business for a variety of reasons. In particular, Apple is known for and promotes itself as actively and aggressively enforcing its intellectual property interests. From the 1980s to the present, Apple has been plaintiff or defendant in civil actions in the United States and other countries. Some of these actions have determined significant case law for the information technology industry and many have captured the attention of the public and media. Apple's litigation generally involves intellectual property disputes, but the company has also been a party in lawsuits that include antitrust claims, consumer actions, commercial unfair trade practice suits, defamation claims, and corporate espionage, among other matters.
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Epic Games, Inc. v. Apple Inc. was a lawsuit brought by Epic Games against Apple in August 2020 in the United States District Court for the Northern District of California, related to Apple's practices in the iOS App Store. Epic Games specifically had challenged Apple's restrictions on apps from having other in-app purchasing methods outside of the one offered by the App Store. Epic Games's founder Tim Sweeney had previously challenged the 30% revenue cut that Apple takes on each purchase made in the App Store, and with their game Fortnite, wanted to either bypass Apple or have Apple take less of a cut. Epic implemented changes in Fortnite intentionally on August 13, 2020, to bypass the App Store payment system, prompting Apple to block the game from the App Store and leading to Epic filing its lawsuit. Apple filed a countersuit, asserting Epic purposely breached its terms of contract with Apple to goad it into action, and defended itself from Epic's suit.
Epic Games v. Google is a lawsuit brought by Epic Games against Google in August 2020 in the Northern District of California. Filed concurrently with Epic Games v. Apple, Epic had challenged Google's monopolistic practices on its Google Play Store on Android devices. A jury trial was held in November and December 2023, after which the jury found for Epic on all counts, ruling that Google violated anti-trust laws in maintaining the Play Store as the dominant storefront with Android, including making deals to ensure apps would be solely published through the Play Store and requiring the Play Store be installed on third-party devices. The court ordered Google to allow alternate app stores on the Android system and temporarily restricted them from engaging in monetary benefits to developers that released exclusively on Google's Play Store.
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