US files landmark lawsuit against Apple

The United States has filed a lawsuit against Apple, accusing the company of monopolising the smartphone market.

The Department of Justice alleges the American technological giant for abusing its control of the iPhone app store to “lock in” customers and developers.

The formal complaint was filed at a federal court in New Jersey along with district attorneys generals of 16 states have also joined the lawsuit against Tim Cook’s company.

“Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others,” the DOJ wrote.

Apple has vowed to “vigorously” fight the lawsuit and denies the claims.

It alleged that Apple used a “a series of shapeshifting rules” in a bid to boost its own profits while raising costs for customers and stifling innovation.

The 88-page complaint focuses on five areas where Apple allegedly abused its power.

In defiance, Apple said customers were loyal because they were happy and that under US law it was free to choose its business partners.

“We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it,” the company said.

This is the third time that the company is facing a legal action from the US government since 2009.

If the government wins its case, it could force Apple to overhaul its current contracts and practices – or even lead to a break-up of the company.