Tennessee Attorney General Jonathan Skrmetti has announced that the state, along with 15 other state and district Attorneys General, is joining a civil antitrust lawsuit against Apple. The lawsuit, filed in collaboration with the United States Department of Justice, accuses Apple of monopolization or attempted monopolization of smartphone markets, violating Section 2 of the Sherman Act.
“Apple, the most valuable company in the world, stifled competition in the smartphone market at the expense of consumers,” stated Skrmetti. He emphasized that innovation should benefit consumers and expressed hope that Apple would return to its innovative roots. In his words, “When companies win by innovating, consumers benefit. When companies win by kneecapping their competition, consumers suffer.”
The complaint was submitted to the United States District Court for the District of New Jersey. It claims that Apple maintains its monopoly over smartphones by imposing contractual restrictions selectively and withholding critical access points from developers. This strategy allegedly undermines apps and services that could reduce user reliance on iPhones and promote interoperability while lowering costs.
The Justice Department and state Attorneys General are seeking to restore competition within these markets for American consumers. According to the complaint, Apple's conduct extends beyond smartphones to affect various sectors including web browsers, video communication, news subscriptions, entertainment, automotive services, advertising, and location services.
Apple Inc., based in Cupertino, California, reported net revenues of $383 billion and a net income of $97 billion for fiscal year 2023. The company's financial performance surpasses any other firm in the Fortune 500 and exceeds the GDPs of over 100 countries.