US Files Lawsuit Against Apple for Monopolizing Smartphone Market: What You Need to Know

The US has sued Apple, alleging it unfairly limits competition and controls the smartphone market. The lawsuit cites five key areas where Apple is accused of stifling competition, including cloud gaming apps.

According to the lawsuit, Apple has blocked developers from offering cloud gaming apps on the App Store, which would allow users to play high-quality games on older Apple devices without needing to purchase new, expensive hardware.

The lawsuit claims that Apple has prevented third-party developers from offering cloud gaming subscription services as native apps on the iPhone, which could potentially give users more options and potentially drive them to switch to less expensive smartphones.

Despite Apple’s announcement in January allowing game streaming apps, Xbox head Phil Spencer says it doesn’t do enough to open up competition, indicating that there are still barriers to entry for services like Xbox Game Pass Ultimate’s cloud streaming on iOS.

Apple has denied the allegations and says it will vigorously defend itself in court. The company has already faced regulatory challenges in the EU, where the Digital Markets Act aims to prevent dominant market players like Apple from stifling competition. Apple is now required to allow developers to create and offer new apps in the EU without using the App Store.

However, some organizations and companies, like the European Games Developer Federation and Epic Games, have criticized Apple for trying to circumvent the new regulations, including new third-party app store fees and allegations that Epic’s developer account was unfairly terminated (though it has since been reinstated).