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DOJ and States Sue Apple for Sherman Act Monopolization

Apple Inc.March 21, 2024Connecticut Attorney General

Summary

Connecticut, along with the U.S. Department of Justice and 15 other states, has filed a civil antitrust lawsuit against Apple Inc. for monopolizing smartphone markets in violation of the Sherman Act. The complaint alleges Apple engages in anticompetitive conduct such as blocking innovative apps, suppressing cloud streaming services, and limiting interoperability to maintain its monopoly and impose high costs on consumers and developers. The plaintiffs seek equitable relief to restore competition.

Remedy

The lawsuit seeks equitable relief, including injunctions, to end Apple's anticompetitive conduct and restore competition in smartphone markets, but no specific remedies have been imposed at this time.

Contract Impact

In-house legal teams should review all vendor and developer agreements, particularly those governing app distribution, platform access, and interoperability. Focus on clauses that impose restrictions on cross-platform functionality, mandate exclusive use of Apple's services or payment systems, define relevant markets in a way that reinforces monopoly power, or contain MFN provisions that prevent more favorable terms with competitors. Changes may be needed to remove or modify anticompetitive restrictions, ensure fair access to essential interfaces and tools, and allow developers and consumers greater freedom to choose alternative products and services without penalty.

Contract Search Terms

contractual restrictionsinteroperability clausesexclusive dealing provisionsmost favored nation (MFN) clausesmarket definition clausesdeveloper agreement termsplatform access termsapp store distribution terms

Laws Cited

Sherman Act15 U.S.C. § 2
15 U.S.C. § 2

Violation Types

Entity Details

Entity

Apple Inc.

Also known as: Apple

Industry

Technology

Multistate Coalition

Official Sources

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