On March 21, 2024, the Department of Justice (DOJ) and 16 state and district attorneys general filed a complaint against Apple Inc (AAPL:US), alleging that its iPhone ecosystem functions as a monopoly, contributing to its high valuation at the expense of consumers, developers and rival phone manufacturers.

The civil complaint lodged in the U.S. District Court for the District of New Jersey asserts that Apple's anti-competitive behaviors extend beyond its iPhone and Apple Watch businesses, including its advertising, browser, FaceTime, and news services.

Instead of engaging in fair competition by offering more cost-effective services, federal and state authorities argue that Apple has implemented restrictive rules and practices to increase fees, stifle innovation, provide a less secure user experience, and limit alternatives.

The suit, filed by the DOJ, claims that each action taken by Apple has fortified its dominance in the smartphone market.

The authorities seek court intervention to prevent Apple from using its control over app distribution to undermine cross-platform technologies like super apps and cloud streaming apps. Additionally, they aim to restrict Apple from leveraging private APIs to hinder technologies such as messaging, smartwatches, and digital wallets, and from using contractual terms to maintain its monopoly.

Apple's spokesperson, Fred Sainz, expressed concern over the lawsuit stating that it threatens the company's core principles and its ability to innovate across hardware, software, and services.

Meanwhile, Senator Tommy Tuberville's recent sale of up to $550,000 worth of Apple stock within the past three months appears timely, considering the decline in the stock's value by over 10.50% since his last trade.