By: Mario Zuñiga (Truth On The Market)
The recent complaint from the U.S. Justice Department (DOJ) alleging Apple’s monopolistic practices in smartphone markets is framed by Assistant U.S. Attorney General Jonathan Kanter as a contribution to the agency’s tradition of challenging formidable monopolies throughout history.
However, critical voices such as Alden Abbott, Herbert Hovenkamp, and Randall Picker have extensively highlighted fundamental flaws in the assessment of both Apple’s supposed monopoly power and the “exclusionary” tactics it employs.
Yet, what seems to have gone unnoticed is the DOJ’s flawed comprehension of the objectives and extent of what it terms “our system of antitrust laws.”
The crux of the DOJ’s case revolves around Apple’s alleged manipulation of its products to maintain dominance in the “performance smartphone” sector. According to the complaint, Apple is accused of impeding technologies that could enhance competition in smartphone markets by reducing barriers to switching devices, among other tactics. These suppressed technologies are purportedly designed to offer a superior user experience across all smartphones, thereby necessitating competition based on merits.
Furthermore, the DOJ contends that Apple deliberately undermines its products to stifle emerging competition. It cites instances where Apple’s actions have contributed to bolstering its smartphone monopoly by increasing user switching costs, resulting in inflated prices and diminished innovation for users and developers alike…
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI