The U.S. Department of Justice filed a lawsuit against Apple on Thursday, alleging that the tech giant has leveraged the market dominance of the iPhone to stifle competition.
This legal action marks the beginning of a lengthy legal process involving a large team of lawyers that could potentially challenge Apple’s “walled garden” business model.
If the DOJ prevails in the lawsuit, it may seek various changes to Apple’s operations, including the possibility of imposing structural remedies or even breaking up the company. On the other hand, if Apple successfully argues its case, a court could determine that its 64% share of the U.S. smartphone market does not constitute a monopoly or that its actions were not unlawful, providing Apple with stronger defenses against future regulatory actions.
However, before any final decisions are reached, extensive legal proceedings are expected to occur, requiring Apple to publicly defend its business practices, divert its executives’ attention to legal matters, disclose internal documents to the government, and potentially face negative publicity that could impact its brand reputation.
At present, the lawsuit filed by the DOJ is awaiting assignment to a judge. In the meantime, Apple may seek a change in the trial location and likely attempt to have the case dismissed altogether.
Source (CNBC)
