As much as $100 billion was wiped off of Apple’s market valuation today as its shares tumbled after the US Department of Justice sued the tech giant and claimed it had a “monopoly” on smartphones.
Shares in the iPhone maker fell by 3.8%, far enough to take $100 billion off the tech giant’s market cap.
The US Department of Justice filed the suit in a federal Court in New Jersey.
Apple controls about 60% of the US smartphone market.
US Attorney General Merrick Garland said: “Unchallenged, Apple’s smartphone monopoly will only grow.”
While UK and EU competition watchdogs have sought to limit the growth of tech giants more frequently, American authorities had previously shied away. The lawsuit could represent a shift in policy towards tighter tech regulation in the states.
Deputy Attorney General Lisa Monaco said: “Today, the Department alleges that Apple — one of the world’s largest tech companies — crossed the line from rigorous competition to anticompetitive exclusion, unlawfully maintaining a monopoly in violation of the Sherman Act.
“The complaint makes clear that, for years, Apple has tightened its grip on the smartphone market.
“It has done so not through product improvements — but by maintaining a chokehold on competition — locking its customers in to the iPhone while locking its competitors out of the market.
“As a result, and as the complaint details, Apple has gone from revolutionizing the smartphone market to stalling its advancement.
Apple called the lawsuit “wrong on the facts and the law”. It said it “will vigorously defend against it.”
It said: ““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 statement. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets.”
Most of the top US tech firms have seen shares soar this year, but Apple has lagged behind. Its shares are down about 11% in the last two months.
