The US is suing Apple for allegedly using its power in the smartphone sector to quash competition from rivals and limit consumer choice, in the latest broadside against the dominant Big Tech companies from Joe Biden’s administration.
The move comes as Apple faces pressure from regulators, courts and rivals around the world over the way it runs the iPhone, putting its $85bn a year services revenue at risk. Apple shares were down about 3 per cent.
The landmark lawsuit filed on Thursday in federal court in New Jersey by the US Department of Justice, along with a bipartisan group of 16 state and district attorneys, accuses the group of imposing contractual limitations on developers while making it more difficult for users to switch devices.