Apple Faces Lawsuit from 16 States, Accused of Anti-Competitive Practices and Consumer Lock-in

HARTFORD, Connecticut – Connecticut has joined forces with 15 other states and territories in a legal battle against tech giant Apple. The lawsuit accuses the company of using its popular iPhone to stifle competition and exploit customers for financial gain. The states involved in the lawsuit include Maine, New Hampshire, New Jersey, and Vermont. They argue that Apple’s practices create barriers for consumers looking to switch to alternative smartphones by preventing competitors’ products from working seamlessly with the iPhone.

During a press conference held in Hartford, Connecticut’s Attorney General William Tong emphasized that Apple is not just a victim of its own success but is actively engaged in a corporate strategy to eliminate competition. Apple, however, has denied the allegations of anti-competitive practices, attributing its success to a commitment to innovation and providing technology that people love.

In fiscal year 2023, Apple reported profits of $97 billion, and over half of all smartphones sold in North America were iPhones. The company believes that one reason for this success is the ease with which Apple products connect with the iPhone. Apple argues that the lawsuit threatens its core principles that set its products apart in highly competitive markets.

The lawsuit claims that Apple violates anti-trust laws by restricting the compatibility of competitors’ accessories, such as smartwatches, with the iPhone’s operating system. Additionally, Apple is accused of blocking the use of “Super Apps” that enable users to perform multiple tasks within a single application. Another point of contention is Apple’s refusal to allow third-party wallet apps, thereby forcing users to rely solely on Apple Pay for contactless payment systems.

Tong emphasized the significant influence Apple has in people’s lives and highlighted his state’s commitment to holding technology giants accountable. In recent times, Connecticut has been involved in legal actions against other tech companies, including Google and Meta (formerly Facebook), over issues such as data usage and its impact on mental health.

The lawsuit against Apple is part of a broader effort by states to assert greater control over technology companies and ensure a fair and competitive marketplace. It remains to be seen how this legal battle will unfold and what implications it may have for the future of technology and consumer rights.