As Apple struggles with slowing sales in China, it’s now also facing a crisis due to an antitrust lawsuit from U.S. authorities.
Apple has been unable to avoid difficulties as its sales in China have significantly slowed, causing its stock price to fall 8% this year. Amid these circumstances, the U.S. Department of Justice has filed an antitrust lawsuit against Apple.
The Department of Justice (DOJ) filed an antitrust lawsuit against Apple on the 21st, accusing it of preventing competitors from providing applications (apps) to iPhone users.
U.S. Attorney General Merrick Garland pointed out in a statement, “If left unchecked, Apple will only continue to strengthen its smartphone monopoly.”
The Department of Justice is reportedly not ruling out the possibility of dismantling Apple.
A DOJ official told the Wall Street Journal (WSJ) in an interview, “If the authorities win, the option of dismantling Apple is on the table.”
If Apple’s dismantling is successful, it will be one of the few instances under the Sherman Anti-Trust Act. The DOJ has considered using this in other antitrust cases, but it has not done so since the Bell System was dismantled in 1982.
However, experts suggest that Apple could be dismantled because it’s large in size.
Not only is Apple struggling in the U.S., but also in Europe with the same issues.
Earlier this month, Apple was fined 1.84 billion euros (about $2 billion) by the EU for unfair practices such as abusing its market dominance in the music streaming app market to block consumers from using cheaper subscription services.
In addition, Apple is struggling with a sharp decrease in sales in China.
According to a report by IT research firm Counterpoint, iPhone sales in China decreased by 24% in the first six weeks of 2024 compared last year, while competitor Huawei’s sales surged by 64%.
Apple has been unable to avoid difficulties as patriotic consumption surges in China. China is a key market where more iPhones are sold than in the U.S.