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“The widespread adoption of the iPod and iTunes on Windows, coupled with successful antitrust enforcement against Microsoft, contributed to the development and success of Apple’s next flagship product, the iPhone,” the complaint states. There is. “But after the iPhone was released, Apple began to suppress the development of cross-platform technologies on the iPhone, just as Microsoft tried to suppress the development of cross-platform technologies on Windows.”
Part of that advantage is due to the App Store, which allows iPhone users to install a variety of apps from third-party developers on their devices. For the overwhelming majority of iPhone owners, the App Store is the only means by which these programs can be downloaded. The government says Apple exercises near-dictatorial power over developers who want to distribute apps through the App Store, largely through contractual terms and a lack of alternatives. The lawsuit also says that the company collects large fees for each transaction at its stores, which it calls “monopoly rent.”
“As Apple exercised control over app distribution and app creation, it slowed down its own iPhone innovations and extracted more revenue and profits from existing customers through subscriptions, advertising, and cloud services,” the government claims. did. “These services increase the cost of switching from your iPhone to another smartphone, because many of these services, such as proprietary games, cloud storage, and news services, are exclusive to the Apple ecosystem, making it difficult to use alternatives. It causes a lot of friction for iPhone users who want to use the service on another smartphone. ”
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