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California joins DOJ lawsuit against Apple alleging illegal smartphone monopoly

A person's silhouette is shown by a sign displaying an iPhone and other Apple products.
A man walks past an Apple store in Hong Kong.
(Anthony Wallace / AFP/Getty Images)
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Good morning. It’s Friday, March 22. Here’s what you need to know to start your day.

DOJ, California and other states file antitrust lawsuit against Apple

There’s a decent chance you own an iPhone — maybe you are even reading this newsletter on one right now. If so, you probably know what happens when you text someone who doesn’t use an iPhone.

Green text bubbles instead of those signature blue iMessages appear. No editing texts or seeing if the person you texted is writing back. And if your iPhone-less friend sends you a video or photo, the quality is poor.

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According to U.S. Justice Department allegations, Apple is purposefully degrading those user experiences to make it seem that iPhones are superior.

On Thursday, U.S. Atty. Gen. Merrick Garland announced that the department and 16 state attorneys general, including California’s, have filed an antitrust lawsuit against Apple, alleging the Cupertino-based company “employed a strategy that relies on exclusionary, anticompetitive conduct that hurts both consumers and developers.”

Aside from the texting and photo quality issues, the DOJ alleges that Apple had deliberately made it harder to connect iPhones to non-Apple smart devices. The tech company was also accused of blocking attempts from banks and other finance companies to make their own payment products available on the iPhone while Apple promoted the use of its digital wallet feature.

“For consumers, that has meant fewer choices; higher prices and fees; lower quality smartphones, apps, and accessories; and less innovation from Apple and its competitors,” Garland said during a news conference.

“We’re suing Apple for illegally stifling innovation and competition, limiting consumer choice, and making it difficult and expensive to switch to other smartphones,” California Atty. Gen. Rob Bonta tweeted Thursday. “Consumers — not Apple — should decide what options they have.”

California is no stranger to antitrust lawsuits. Last year, the state joined the DOJ and seven other states to file a complaint against Google, accusing the tech giant of creating a monopoly for digital advertising. In recent years, California also filed lawsuits against Amazon and Meta, accusing each of anti-competitive practices.

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A spokesperson for Apple said the new lawsuit “threatens who we are and the principles that set Apple products apart in fiercely competitive markets.”

“If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect,” the statement continued. “It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”

Apple has faced similar allegations and legal action in the past.

“The Justice Department last sued Apple in 2012, accusing the company of colluding with book publishers to fix e-book prices,” Times reporter Hannay Fry wrote in her coverage this week. “Apple was required to pay a $450-million settlement in the case.”

And along with this new legal action at home, Apple is facing challenges overseas too. Earlier this month, the European Union hit the company with a $2-billion fine, alleging that the company deliberately stifled Spotify and other music-streaming services on its platforms. Apple said it will appeal the EU’s penalty.

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Commentary and opinions

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How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com.

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For your downtime

Three smiling people are with a puppet.
Alexis Wong, Christen Tai, and Jesse Kingsley are with Moira MacDonald’s puppet Svetlana at the L.A. Guild of Puppetry’s monthly meet-up at Vista Hermosa Park in Los Angeles.
(Stella Kalinina / For The Times)

Going out

Staying in

And finally ... a great photo

Show us your favorite place in California! We’re running low on submissions. Send us photos that scream California and we may feature them in an edition of Essential California.

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Artist Erick Medel holds one of his textile art pieces in Los Angeles.
(Jason Armond / Los Angeles Times)

Today’s great photo is from Times photographer Jason Armond in the L.A. studio of artist Erick Medel who makes textile art pieces of flowers as a way to explore his identity and connection to L.A.

Have a great day, from the Essential California team

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Ryan Fonseca, reporter
Kevinisha Walker, multiplatform editor
Stephanie Chavez, deputy metro editor

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