The Department of Justice and 16 states are suing technology giant Apple claiming it has mantained monopoly power by violating federal antitrust laws.
The lawsuit alleges that Apple has monopoly power in the smartphone market.
The Attorney General Merrick Garland layed out the case at a Thursday morning news conference.
"Consumers should not have to pay higher prices because companies violate the antitrust laws," said Garland. "We allege that 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."
The Justice Department alleges Apple is in violation of Section 2 of the Sherman Act.
The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from, developers.
The DOJ claims Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers.
Garland said Apple has made it difficult and costly for 3rd parties to venture outside of the Apple ecosystem to create their own products for Apple users.
Apple called the lawsuit "wrong on the facts and the law" and said it "will vigorously defend against it," according to the Associated Press. Its stock was down 3% after the announcement.
The complaint alleges that Apple's anticompetitive course of conduct has taken several forms, including:
