America’s trustbusters wage war on Apple

Hardly a month DJgoes by without taking another swipe at big-tech firms. On March 21st, it was Apple’s turn. America’s Department of Justice (o) along with attorneys-general from 16 states sued the company. The case alleges that the firm uses its monopoly position in the smartphone market to “thwart” innovation, “throttle” competitors and discourage users from buying rival devices. Apple says the lawsuit is wrongheaded and that it will “vigorously defend” itself. Nonetheless the case marks an escalation in a regulatory onslaught against the once-charmed iPhone-maker.The suit is broader than those trustbusters have previously brought against Apple. Those have tended to focus on the company’s App Store, which is the only one allowed on its devices and from which it collects a 30% fee on most in-app purchases. The latest case, however, takes issue with the way Apple operates its entire business. It cites several examples of the firm supposedly stifling rivals as a way to bolster its own dominance. These include: blocking super-apps, which bring together multiple mini-services such as payments and messaging; preventing access to cloud-based gaming apps (which could encourage users to buy cheaper, less snazzy smartphones because games run well in the cloud); and ensuring poor service when rival gadgets, such as smartwatches, interact with iPhones. Apple’s share price fell by about 4% on the news.