Apple is being sued by the U.S. Department of Justice because they say the company is abusing the iPhone’s market power to shut out competitors and leave people with only Apple.
Apple’s business plan might need to change a lot if the DOJ wins the case. Apple has the chance to make its case and show that it isn’t a monopoly and hasn’t done anything wrong. There’s a chance that this will help Apple in future cases.
The case has not yet been given to a judge, and Apple may ask for a trial to take place somewhere else or for the case to be thrown out. It’s possible that Apple will have to defend their business in public while they wait for their trial if the case goes on.
The trial might not happen for about a year while they gather proof and come up with a defense. Prof. John Newman of law at the University of Miami said that companies that are accused of breaking antitrust laws often try to make the hearing last longer than it needs to.
“Is the judge going to go with what the defendant proposes, which is always years and years and tons and tons of discovery?” Newman asked. Hold on to it forever? Or they can do something about it and try to control it?”
Apple said about the lawsuit that it “threatens who they are” and might stop them from making tech goods that compete with those of other companies. It’s possible that Apple will have to get legal permission for any new features or products they make during the long trial. This will mean that they have to focus on the trial instead of their business.
Kovacic, who used to be a commissioner of the FTC, said, “In past major antitrust cases, the real danger for the company is that the focus shifts from winning the antitrust lawsuits to winning customers and doing your job.”
