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Business

Justice Department preparing to file lawsuit against Apple for alleged antitrust violations

The Justice Department is preparing to file a lawsuit against Apple Inc. for alleged antitrust violations, with the case expected to be filed in federal court as early as Thursday. The lawsuit accuses the tech giant of blocking rivals from accessing hardware and software features of its iPhone, in violation of antitrust laws.

This legal action is part of the Biden administration’s broader crackdown on major US technology companies. The Justice Department is already involved in antitrust cases against other tech giants, including Google, Meta Platforms Inc., and Amazon.com Inc.

Following the news, Apple’s shares fell by as much as 1.4% to $176.10 in late trading. This impending lawsuit will mark the third time in the past 14 years that the Justice Department has taken legal action against Apple for antitrust violations, but it is the first case specifically accusing the company of illegally maintaining its dominant position.

Simultaneously, Apple is facing increased scrutiny in Europe over alleged anticompetitive behavior. Earlier this month, the company was fined €1.8 billion for excluding music streaming rivals from offering lower-priced deals. Apple is currently appealing the penalty, stating that regulators failed to find credible evidence of consumer harm.

Furthermore, Apple may be subject to a comprehensive investigation under the EU’s new regulations for Big Tech — the Digital Markets Act. The company’s new App Store rules in Europe have drawn criticism from rivals, who argue that the changes are likely to result in higher prices for developers. Non-compliance with the EU’s new rules could result in significant penalties, amounting to as much as 10% of a company’s annual worldwide revenue or up to 20% for repeat offenders.

The Justice Department initiated the latest case in 2019 during the Trump administration. Despite this, the antitrust division prioritized cases against Google and took a back seat as Epic Games Inc. sued Apple for monopolization in 2020.

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