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The Justice Department sued Apple Inc. on Thursday for allegedly monopolizing the smartphone market.
Apple allegedly restricted developers of apps, products and services used on the iPhone that could otherwise lower costs for consumers, according to the lawsuit filed in New Jersey. The alleged monopoly allows Apple to extract more money from consumers, software developers, publishers and merchants, according to the lawsuit joined by 16 state and district attorneys general.
“We allege that Apple has consolidated its monopoly power not by making its own products better − but by making other products worse,” said Attorney General Merrick Garland, who said Apple commands 65% of the U.S. smartphone market with products that cost up to nearly $1,600. “Consumers should not have to pay higher prices because companies violate the antitrust laws."
Apple issued a statement saying the lawsuit threatens the company's ability to provide innovative technology and could set a "dangerous precedent."