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Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

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9 months ago

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apple-lawsuit

Washington —A.P.he Justice Department announced a broad antitrust case against Apple on Thursday, accusing the company of creating an illegal smartphone monopoly that excludes competitors and stifles innovation.

The case, filed in federal court in New Jersey, claims that Apple has monopoly power in the smartphone market and utilizes its control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.”

The lawsuit, which was also filed with 16 state attorneys general, is the latest example of the Justice Department’s aggressive enforcement of federal antitrust law. Officials say it is intended to ensure a fair and competitive market, despite the fact that it has lost some significant anticompetition cases.

Apple deemed the case “wrong on the facts and the law” and stated it “will vigorously defend against it.”

Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

President Joe Biden has urged the Justice Department and the Federal Trade Commission to rigorously enforce antitrust laws. Some business executives have objected to the Democratic administration’s increasing surveillance of corporate mergers and business deals, calling it overreaching, but others have praised it as long necessary.

The case is directly aimed at the digital fortress that Apple Inc., based in Cupertino, California, has painstakingly built around the iPhone and other popular products such as the iPad, Mac, and Apple Watch to create what is often referred to as a “walled garden” in which its meticulously designed hardware and software can coexist while requiring consumers to do little more than turn the devices on.

The strategy has helped Apple become the world’s most affluent corporation, with annual revenue of about $400 billion and, until recently, a market value of more than $3 trillion. However, Apple’s stock has declined 7% this year, while the rest of the stock market has risen to new highs, allowing long-time rival Microsoft — the target of a major Justice Department antitrust action a quarter-century ago — to take the lead as the world’s most valuable corporation.

According to Apple, a victory in the lawsuit would “hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect” and that it would “set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”

“At Apple, we innovate every day to make technology people love — designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users,” the company said in a press release. “This action undermines who we are and the ideals distinguishing Apple goods in intensely competitive marketplaces.

Apple has defended the walled garden as an essential feature valued by users seeking the best protection possible for their personal information. It has framed the barrier as a means for the iPhone to separate itself from handsets using Google’s Android software, which is less restrictive and available to a wider range of manufacturers.

Fears of an antitrust crackdown on Apple’s business model and concerns that it is falling behind Microsoft and Google in the race to build artificial intelligence-powered devices have all contributed to the company’s stock price decline.

However, antitrust investigators made it clear in their complaint that they saw Apple’s walled garden primarily as a tool to ward off competition. It established market circumstances that allowed it to charge higher prices, which have pushed its soaring profit margins while limiting innovation.

Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

Attorney General Merrick Garland said in a statement, “Consumers should not be forced to pay higher prices because businesses violate antitrust laws. “We contend that Apple has maintained monopoly strength in the smartphone industry not just by outperforming competitors on merit but also by breaching federal antitrust laws. If left undisturbed, Apple would simply strengthen its smartphone monopoly.”

The Biden administration is escalating an antitrust siege in an attempt to limit Apple’s dominance, which has already resulted in lawsuits against Google and Amazon accusing them of using illegal tactics to stifle competition, as well as unsuccessful attempts to block acquisitions by Microsoft and Facebook parent Meta Platforms.

Apple’s economic interests are also entangled in the Justice Department’s case against Google, which went to trial last October and is set to begin closing arguments on May 1 in Washington, D.C. In D.Cthat case, regulators claim Google has stifled competition by paying for the rights to its already dominant online search engine to be the default place to handle queries on the iPhone and a variety of web browsers, in an arrangement worth an estimated $15 billion to $20 billion per year.

Now that the Justice Department is directly attacking Apple’s business, the company will lose considerably more.

The Justice Department is following up on other recent attempts to compel Apple to change how it operates the iPhone and other elements of its company.

Epic Games, the creator of the blockbuster video game Fortnite, filed an antitrust action against Apple in 2020 to break down the barriers safeguarding the iPhone App Store and a profitable payment system that operates within it. Apple has traditionally charged commissions ranging from 15% to 30% on digital transactions performed within applications, which Epic claimed was possible by an illegal monopoly that drives up consumer prices.

Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

Following a month-long trial in 2021, a federal court decided primarily in Apple’s favour, except for allowing links to other payment alternatives within iPhone apps. Apple unsuccessfully contested that section of the verdict until the United States Supreme Court declined to hear an appeal in January, forcing the corporation to concede. However, Apple’s concessions to comply with the verdict are still being challenged as “bad faith” by Epic, seeking an April 30 hearing to ask U.S. District Judge Yvonne Gonzalez Rogers to require additional revisions.

Apple also had to open up the iPhone to allow apps to be downloaded and installed from competing stores in Europe earlier this month to comply with a new set of regulators known as the Digital Markets Act, or DMA, but critics see its approach as little more than a workaround that will allow it to continue to stifle true competition. European Union regulators have already promised to tighten down on Apple if the company’s actions continue to stifle meaningful consumer choice.

This comes on top of a $2 billion (1.8 billion euro) fine that European regulators levied earlier this month after determining that Apple had harmed competition in music streaming via the iPhone, despite Spotify being the market leader.

SOURCE – (AP)

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Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Sonic the Hedgehog Dominates Christmas Wish Lists

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10 hours ago

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2024-12-21

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Sonic the Hedgehog Merchandise are hot Christmas Items

Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.

Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.

Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.

Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.

Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.

Retailers who tap into this trend are sure to see strong holiday sales.

Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.

Sonic the Hedgehog 4

Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.

The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.

The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.

On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.

The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.

They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.

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Amazon Strike Called By Teamsters Union 10,000 Walkout

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1 day ago

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2024-12-20

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Teamsters members were demonstrating at "hundreds" of other Amazon locations.

An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.

The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.

According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.

The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.

It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.

Amazon Strike at 10 Locations

Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.

The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.

The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.

Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.

Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.

Stalled Contract Negotiations

Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.

However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.

Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.

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Business

Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.

Published

2 days ago

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2024-12-19

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(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.

The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.

The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”

The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.

Amazon has refused to acknowledge the union for many years.

The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.

Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.

Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.

“Amazon workers are exercising their power,” Randy Korgan stated to NPR.

“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.

Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.

The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.

Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.

The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.

Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.

Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.

Teamsters organize Amazon delivery couriers and other employees.

In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.

The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.

In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.

“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”

The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.

SOURCE: NPR

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