Topline

The Justice Department is preparing a draft of its antitrust lawsuit against Apple, though it hasn’t finally decided whether to proceed with the lawsuit, Policy reported Friday, setting the stage for an epic legal battle for the world’s biggest company long accused of stifling competition.

Highlights

Although the Department of Justice has not yet made a final decision on whether to file a lawsuit, prosecutors intend to file a lawsuit by the end of the year s they pursue the case, Policy reportedquoting a person familiar with the matter.

Lawsuit Targets Apple App Store Practices – Behavior decried by rivals as anti-competitive — as well as claims related to the company’s hardware, according to the report.

Apple shares fell 1.1% to $164.61 following the report, deepening a 3.1% decline in Friday trading.

Apple, which previously refuse engaging in monopolistic practices, did not respond to Forbes‘ request for comment, while the Department of Justice declined to commentyou.

Key Context

The Justice Department’s Antitrust Division has been investigating Apple since 2019, and the Information reported Last October, the likelihood of the investigation leading to a trial increased. Apple would join fellow tech giants Alphabet and Meta in facing federal antitrust lawsuits, as Alphabet’s Google and Meta’s Facebook were sued by the Justice Department and the Federal Trade Commission, respectively, in 2020 over practices presumed monopolists. Reviews denounced Apple’s long-standing policy of cutting most App Store purchases by 30%, though Apple changed the policy last August amid a high profile antitrust lawsuit against the company by Epic Games. and an October 2020 investigation by the House Antitrust Subcommittee found Apple has “monopoly power” in the smartphone app market.

Large number

$2.65 trillion. It’s the market capitalization of Apple, the the biggest of any business in the world.

Further reading

The DOJ is in the early stages of drafting a potential antitrust lawsuit against Apple (Policy)

Apple agrees to App Store policy changes in settlement with small developers as antitrust threat looms (Forbes)

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