US Attorney General's Full Speech On Suit Against Apple For iPhone Monopoly

The US Department of Justice on Thursday sued Apple for illegally maintaining a monopoly for its iPhone by stifling competition and imposing exorbitant costs on consumers.

The lawsuit, which was also brought by multiple US states, attacked the iPhone for raking in hundreds of billions of dollars by making it difficult for consumers to switch away to cheaper smartphones and devices.

Apple joins Amazon, Google and Facebook-owner Meta which are also facing antitrust lawsuits in the US.

What US Attorney General Merrick Garland Said On Lawsuit Against Apple

Earlier today, the Department of Justice, joined by 15 states and the District of Columbia sue Apple in the U.S. District Count for the District of New Jersey for violating Section 2 of the Sherman Antitrust Act.

Over the last two decades, Apple has become one of the most valuable public companies in the world. Today, its net income exceeds the individual Gross Domestic Product of more than 100 countries. That is in large part due to the success of the iPhone, Apple's signature smartphone product.

For over a decade, iPhone sales have made up a majority of Apple's annual revenue. Today, Apple's share of the U.S. performance smartphone market exceeds 70%, and its share of the entire U.S. smartphone market exceeds 65%. Apple charges as much as nearly $1,600 for an iPhone.

But as our complaint alleges, Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits, but by violating federal antitrust law.

Consumers should not have to pay higher prices because companies break the law.

We allege that Apple has employed a strategy that relies on exclusionary, anticompetitive conduct that hurts both consumers and developers.

For consumers, that has meant fewer choices; higher prices and fees; lower quality smartphones, apps, and accessories; and less innovation from Apple and its competitors.

For developers, that has meant being forced to play by rules that insulate Apple from competition.

And as outlined in our complaint, we allege that Apple has consolidated its monopoly power not by making its own products better - but by making other products worse.

Apple carries out its exclusionary, anticompetitive conduct in two principal ways: 

First, Apple imposes contractual restrictions and fees that limit the features and functionality that developers can offer iPhone users.

Second, Apple selectively restricts access to the points of connection between third-party apps and the iPhone's operating system, degrading the functionality of non-Apple apps and accessories.

As a result, for most of the past 15 years, Apple has collected a tax in the form of a 30% commission on the price of any app downloaded from the App Store as well as on in-app purchases. Apple is able to command these fees from companies of all sizes.

Apple has also suppressed the emergence of programs like cloud streaming apps - including gaming apps - as well as super apps that could reduce user dependence on Apple's own operating system and expensive hardware. 

And, as any iPhone user who has ever seen a green text message, or received a tiny, grainy video can attest - Apple's anticompetitive conduct also includes making it more difficult for iPhone users to message with users of non-Apple products.

It does this by diminishing the functionality of its own messaging app and by diminishing the functionality of third-party messaging apps.

By doing so, Apple knowingly and deliberately degrades quality, privacy, and security for its users.

For example, if an iPhone user messages a non-iPhone user in Apple Messages, the text appears not only as a green bubble, but incorporates limited functionality:

• The conversation is not encrypted;
• Videos are pixelated and grainy; and
• Users cannot edit messages or see typing indicators.

As a result, iPhone users perceive rival smartphones as being lower quality because the experience of messaging friends and family who do not own iPhones is worse - even though Apple is the one responsible for breaking cross-platform messaging.

And it does so intentionally.

For example, in 2013, a senior executive at Apple explained that supporting cross-platform messaging in Apple Messages, "would simply serve to remove [an] obstacle to iPhone families giving their kids Android phones."

In 2022, Apple's CEO was asked whether Apple would fix iPhone-to-Android messaging. The questioner added: "not to make it personal but I can't send my mom certain videos."

Apple's CEO responded, "Buy your mom an iPhone."

In addition to selectively controlling app distribution and creation, we allege that Apple is violating the law by conditionally restricting developers' access to the interface needed to make an app functional on the Apple operating system.

For a product like a smartwatch or a digital wallet to be useful to an iPhone user, it must be able to communicate with the iPhone's operating system. But Apple creates barriers that make it extremely difficult and expensive for both users and developers to venture outside the Apple ecosystem.

When it comes to smartwatches, Apple not only drives users to purchase an Apple Watch - which is only compatible with an iPhone - it also uses its technical and contractual controls to make it harder for someone with an iPhone to use a non-Apple smartwatch.

And when it comes to digital wallets, Apple's exclusionary conduct goes a step further. Digital wallets allow users to store and use passes and credentials in a single app - including credit cards, personal identification, movie tickets, and car keys. Apple Wallet is Apple's proprietary digital wallet on the iPhone.

Apple actively encourages banks, merchants, and other parties to participate in Apple Wallet. But it simultaneously exerts its monopoly power to block these same partners from developing alternative payment products and services for iPhone users.

For example, Apple has blocked third-party developers from creating competing digital wallets on the iPhone that use what is known as tap-to-pay functionality. That is the function that makes a digital wallet - well, a wallet.

Instead, Apple forces those who want to use the wallet function to share personal information with Apple - even if they would prefer to share that information solely with their bank, medical provider, or other trusted third party.

When an iPhone user puts a credit or debit card into Apple Wallet, Apple inserts itself in a process that could otherwise occur directly between the user and card issuer. This introduces an additional potential point of failure for the privacy and security of Apple users.

And that is just one way in which Apple is willing to make the iPhone less secure and less private in order to maintain its monopoly power.

The Supreme Court defines monopoly power as "the power to control prices or exclude competition."

As set out in our complaint, Apple has that power in the smartphone market.

Now, having monopoly power does not itself violate the antitrust laws.

But it does when a firm acquires or maintains monopoly power - not because it has a superior product or superior business acumen - but by engaging in exclusionary conduct.

As set out in our complaint, Apple has maintained its power not because of its superiority, but because of its unlawful exclusionary behavior.

Monopolies like Apple's threaten the free and fair markets upon which our economy is based. They stifle innovation; they hurt producers and workers; and they increase costs for consumers. 

If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.

But there's a law for that.

The Justice Department will vigorously enforce antitrust law.

Enforcing the law protects consumers from higher prices and fewer choices. 

That is the Justice Department's legal obligation.  That is what the American people expect. That is what they deserve.

I am grateful to the attorneys and staff of the Department's Antitrust Division for their tireless work on this case on behalf of the American people. I will now turn the podium over to the Deputy Attorney General.

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"Shouldn't Have To Pay Higher Prices...": US vs Apple Over iPhone Monopoly

The US Department of Justice sued Apple on Thursday for illegally maintaining a monopoly for its iPhone by stifling competition and imposing exorbitant costs on consumers.

The lawsuit, also brought by multiple US states, attacked the iPhone for raking in hundreds of billions of dollars by making it difficult for consumers to switch away to cheaper smartphones and devices.

The long anticipated case against Apple sees the company founded by Steve Jobs in 1976 clash with Washington after largely escaping US government scrutiny for nearly a half century.

It joins Amazon, Google and Facebook-owner Meta which are also facing antitrust lawsuits in the United States.

News of the lawsuit sent shares in Apple down by as much as 3.75 percent on Wall Street on Thursday.

At the heart of the case is Apple's alleged exclusionary practices that set strict and at times opaque conditions on firms and developers seeking to reach the iPhone's 136 million US users.

According to the lawsuit, these rules and decisions have been designed to force Apple users into staying in the Apple ecosystem and buying the company's more expensive hardware, the iPhone.

"Consumers should not have to pay higher prices because companies violate the antitrust laws," said Attorney General Merrick Garland. 

"If left unchallenged, Apple will only continue to strengthen its smartphone monopoly," he added.

Apple fights back

The far-reaching case singled out practices that it said was making Apple richer to the detriment of advancing innovation and technology for consumers.

In a statement, Apple denied the merit of the lawsuit, saying it was "wrong on the facts and the law, and we will vigorously defend against it."

If successful, the suit would "set a dangerous precedent, empowering government to take a heavy hand in designing people's technology," the company added.

The lawsuit for example accused Apple of squashing the creation of Super Apps, one-stop web portals that could exist on an iPhone and give consumers other ways to get services, such as music, photo or movies.

Other big tech giants such as Meta have long dreamed of opening such super-apps on the iPhone, which accounts for roughly half of the smartphone market in the United States.

The accusations also target Apple's wallet, which is the only application allowed on the iPhone to access the technology to make tap payments in stores, forcing others to pay a fee.

Messaging apps are under the microscope too, with prosecutors accusing Apple of making it hard for Apple users to interact easily with Android phone users, coercing them to buying the more expensive iPhone.

The broad case also mentions smartwatches, with the Apple Watch only being available through the iPhone, and competing smartwatches having very limited functionality on the iPhone.

The complaint alleges that these nefarious practices go into other services such as web browsers, entertainment and even automotive services.

In recent years Apple has invested heavily in promoting services as well as hardware as it seeks ways to make money beyond the iPhone, which was introduced in 2007 and changed the world of consumer technology.

But iPhone sales growth has been slowing in recent years, raising pressure on the company to find other sources of revenue.

The DOJ pointed out that Apple's profits exceed any other company in the Fortune 500 and that it exceeds the gross domestic product of more than 100 countries.

In 2023, Apple saw global sales of $383 billion and net profit of $97 billion.

The DOJ's investigation of Apple began in 2019 under the Trump administration.

Apple largely won a US lawsuit from Fortnite-maker Epic Games that has been pursuing Apple in jurisdictions worldwide over the rules and fees it imposes on the iPhone.

In a case brought by Spotify, the EU this month hit Apple with a 1.8-billion-euro ($1.9 billion) fine for preventing European users from accessing information about alternative, cheaper music streaming services.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Amit Shah Slams Rahul Gandhi Over "Hafta Vasooli" Jibe On Electoral Bonds

Responding to Rahul Gandhi's reference to electoral bonds as 'hafta vasooli', Union Home Minister Amit Shah on Wednesday said that the Congress leader needs to clarify where he obtained Rs 1,600 crore from.

"Gandhi also received Rs 1,600 crore. He should clarify where he got that 'hafta vasooli' from. We assert that it's a transparent donation, but if he labels it as vasooli, he should provide details," Mr Shah said in a video posted on his X account.

When asked if the BJP would disclose their donor list like other parties, Mr Shah responded, "I assure you, once the details are out, the INDIA alliance will find it hard to face the public."

"Electoral bonds were introduced to end the domination of black money in Indian politics, they were brought to eradicate black money. Now the scheme has been scrapped and I fear the return of black money," Mr Shah said.

He further stated that there should be reforms regarding the electoral bonds, rather than scrapping it.

"I believe that rather than scrapping it, there should be reforms, but it does not hold any significance, as the top court has given its verdict and I respect that," he added.

"But my personal opinion is that bonds had almost ended black money in politics. This is why the entire INDIA bloc, led by Rahul Gandhi, was against the bonds and they wanted the old system of cut money to rule over politics once again," the senior BJP leader stated.

The Electoral Bond Scheme was a way for political parties in India to get money without revealing the donor's identity. But, the Supreme Court, in a ruling in February, struck down the scheme and ordered the State Bank of India (SBI) to stop issuing electoral bonds immediately.

In compliance with a directive from the Supreme Court, the Election Commission of India (ECI) recently uploaded data on electoral bonds on its official website. The SBI had supplied the information, which includes details about these electoral bonds.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Nepal's Only Billionaire Investigated In Alleged Land Grab Case

Nepal's only billionaire, Binod Chaudhary, is under the lens of the Central Investigation Bureau (CIB) in connection with a government land-grab case. The matter came to light after CIB wrote a letter to Nepal's House Speaker, informing him of their ongoing investigation.

Mr Chaudhary, a lawmaker from the Nepali Congress in the lower house of the Nepal Federal Parliament, is being investigated for allegedly privatizing land belonging to the Bansbari Shoe Factory, a government entity.

Hobindra Bogati, a senior officer at CIB, submitted a letter at the Parliament Secretariat informing House Speaker Dev Raj Ghimire about the investigation against the lawmaker in the land embezzlement case.

The CIB has also given Mr Chaudhary a deadline until Thursday morning to provide an explanation of the case to the investigating authority, otherwise he might face arrest.

Mr Chaudhary is accused of illegally acquiring 10 ropani (54758.621 square feet) of land from the Bansbari Leather Shoe Factory, a government-owned company that is now defunct.

He is accused of transferring the land to Champion Footwear under an illegal agreement, and subsequently renamed the company to CG Chandbagh Residency Pvt, which is owned by him.

He later gave the land to his brother, Arun Chaudhary, who now operates CG Chandbagh School on the seized property. An investigation had found that the Nepali billionaire, like his brother Arun Chaudhary, holds shares in Champion Footwear Company, a venture implicated in acquiring government land from the Bansbari Leather Shoe Factory.

Documents also revealed that Arun, the younger brother, has 200 shares in Champion Footwear Limited.

Despite his brother's arrest in connection with this case, Binod Chaudhary was not arrested. The documents indicate that the 200 shares, valued at 2 lakh, are part of an agreement specifying that the company should hold 2,500 shares of Bansbari Leather Shoe Factory.

It is also noted in the document that Binod Chaudhary's 's father, Lunkarandas Chaudhary, owns more than 2100 shares in the Bansbari Leather Shoe Factory.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Billionaire Businessmen Arrested In Multi-Crore GST Fraud Case In Noida

In a breakthrough in the Goods and Services Tax (GST) fraud case, the Noida Police on Wednesday said it has arrested two Haryana-based "billionaire businessmen" who allegedly masterminded the multi-crore revenue loss to the exchequer.

The accused are in the business of metal scrap and have collectively caused a revenue loss of around Rs 25 crore to the exchequer, a senior police officer said.

Known as the "GST scam", the case came to light in June 2023 and pertains to revenue loss to the exchequer through input-tax credit (ITC) being claimed by thousands of bogus companies that were floated using forged documents.

The police investigation has shown the involvement of hundreds of bogus firms and transactions of around Rs 10,000 crore by those, and more than two dozen people have so far been arrested in the case, according to officials.

Deputy Commissioner of Police (Crime) Shakti Mohan Avasthy said a few months ago, a team from Noida's Sector 20 police station busted a racket and arrested some suspects who were allegedly behind floating around 2,600 bogus companies.

"In pursuance of that case, the masterminds of the racket who fraudulently claimed ITC from the government and caused revenue loss to the exchequer were arrested on Wednesday. The masterminds are billionaire businessmen and have been identified as Sanjay Jindal and Ajay Sharma," Avasthy told reporters here.

"Jindal runs a company by the name of AS Brownie Metal and Alloys located in Sonipat district of Haryana. He fraudulently claimed Rs 16.9 crore worth of ITC. This amount was later frozen by enforcement agencies. Sharma used six companies to cause a revenue loss of Rs 8.57 crore. This amount was also frozen later by the GST department following a report by the Noida Police," the officer said.

Avasthy, who has been leading the investigation in the matter since it came to light, said both the accused are "billionaire businessmen" and have "huge businesses" in Sonipat.

Jindal and Sharma were wanted by the Noida Police for long and carried a reward of Rs 25,000 each on information leading to their arrest, the DCP added.

"Jindal and Sharma are the masterminds of the racket. They were the real beneficiaries of this fraud business of floating bogus companies and claiming ITC on their behalf. So far, we have arrested 32 people in connection with the case and some more linked to it will be held soon," he said.

Police said an FIR was lodged at the Sector 20 police station under Indian Penal Code sections 420 (cheating), 467, 468, 471 (all related to forgery) and 120B (criminal conspiracy).

Last month, the Noida Police attached assets worth approximately Rs 12 crore of the gang members involved in the GST "scam", including immovable properties at multiple locations in Delhi.

The case came to light in June 2023 after thugs applied for the registration of bogus companies by fraudulently using the PAN details of a journalist and got two firms registered --" one in Punjab and one in Maharashtra -- while the request for a third such company to be registered in Delhi was rejected by the GST authorities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Karnataka Student Thrashed For Talking To Hindu Girl, Case Filed: Police

In yet another incident of moral policing in Karnataka, a student from a minority community was allegedly thrashed for talking to a Hindu girl in the Yadgir district, police said on Wednesday.  

The incident took place on March 18 when he was returning home from college. 

He told the police that he was conversing with a girl from the Hindu community over the phone when a group of nine people attacked him near the Gogi Mohalla.

He said that they confined him in a room for five hours and assaulted him. The student said they brandished a knife and threatened to kill him. 

The police have filed a case and further investigation is underway.

Earlier in January, an inter-faith couple in Karnataka's Haveri was subjected to harassment and threats by a group of nine individuals.

The incident took place just days after six men barged into the room of a lodge and assaulted a couple for the 'crime' of being together despite following different faiths.

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"No Electoral Value": Naveen Patnaik's Aide Amid BJP-BJD Alliance Buzz

The BJP and BJD do not need each other to win elections, but some things are beyond politics and the two leaders -- PM Narendra Modi and CM Naveen Patnaik -- want to come together for "a greater cause", said VK Pandian, the close aide of the chief minister.

Speaking at a media conclave in New Delhi on Tuesday, he said Chief Minister Patnaik and PM Modi share a great friendship.

"Somebody wants to join an alliance because they want to have an impact on the electoral map. Here is a chief minister who is so popular in the state and he gets 3/4th majority every time. In the recently concluded panchayat elections, which are fought on party symbols, he got 90 per cent of the seats. The second party is the BJP with 5 per cent of seats. So, Mr Naveen Patnaik does not need an alliance to come back to serve the people. I would say the same thing about Mr Narendra Modi, the honourable PM," Mr Pandian said.

"...there are some things beyond politics. It is a mark of great statesmanship, that's how I put it. Two great leaders wanting to come together for a greater cause. It has significance as two great people coming together as a mark of statesmanship. That's how I see it, and even the chief minister thinks that way. It has no electoral value either for the BJD or the BJP," he added.

Mr Pandian said the PM and the chief minister see some things that are beyond politics.

"BJD does not need BJP to form government in the state, and BJP may not need BJD to form government at the Centre. That's why I made it very clear that it has to do with two individuals who share a great friendship and they see some things are beyond politics. A rare mark of statesmanship," he said.

Asked about the status of the alliance, he said, "If anything happens, we will all get to know... I told the logic behind this whatever talk (over the alliance) has happened." Pandian's statement comes amid weeks of speculations about an alliance between the state's ruling party and the main opposition, ahead of the simultaneous elections to 21 Lok Sabha seats in the state and the 147-member assembly.

Earlier, state BJP leaders rejected the speculations on several occasions, asserting that they would fight the elections on their own and oust the BJD government.

The BJP and BJD were in alliance for 11 years, from 1998 to 2009. Over the last decade, the BJP decimated the Congress to emerge as the main opposition party in the state.

However, the BJD often extended support to the BJP in Parliament on crucial legislations and even helped Railway Minister Ashwini Vaishnaw get elected to Rajya Sabha from the state.

In the 2019 elections, BJD won 12 of the 21 Lok Sabha seats, while the BJP secured eight and Congress managed one seat. In the assembly, the BJD bagged 113 seats, the BJP won 23 seats, the Congress secured nine seats, the CPI(M) won one, and also an Independent candidate won.

Reacting to Mr Pandian's statement, the Congress said the two parties have been in an "undeclared alliance" over the last 10 years.

"So, the Congress is the only alternative in the state. I appeal to the people of Odisha to support Congress in the upcoming elections," state Congress Sarat Pattanayak said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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