US lawsuit details Steve Jobs emailspublished at 16:07 Greenwich Mean Time 21 March

16:07 GMT 21 March

Michelle Fleury
New York business correspondent

The US Department of Justice is coming out swinging, accusing Apple of using its power in the smartphone sector to limit competition and consumer choice.

In the first paragraph of their complaint, they allege that Apple felt threatened by how easy it was to switch between iPhone and Android.

They point to emails between an executive and then-CEO and founder Steve Jobs, bemoaning a Kindle ad where a user switches seamlessly between a Kindle app on an iPhone and an Android.

Apple sees this as an existential threat, saying “this threatens who we are”.

Here's a clip of US Attorney General Merrick Garland laying out his case against Apple, which he accuses of monopolising the smartphone market.

Just joining us? Here's a quick recap of what's been happening:

• The US has filed a landmark lawsuit against Apple, which accuses the tech giant of monopolising the smartphone market and crushing competition
• It's the third time the company has been sued by the justice department since 2009, but the first under the current administration
• Speaking at a press conference minutes ago, Attorney General Merrick Garland accused Apple of maintaining its dominance of the smartphone market by "locking its customers in" and "locking its competitors out"
• In response, Apple says the lawsuit, "if successful, would hinder our ability to create the kind of technology people expect from Apple"

Stick with us as we bring you reaction and analysis.

Apple has faced monopoly claims in the past - but this is one of its biggest challenges yet.

Its shares are currently down about 3.6% today, extending declines after the announcement of the suit.

Investors have sometimes shrugged off these kinds of battles, so it's a sign of the seriousness of the situation.

Answering the last question at the news conference, Attorney General Merrick Garland said that the lawsuit was not aimed at every kind of activity Apple does, but rather "aimed at exclusionary conduct".

And then he gave the stage to Jonathan Kanter, an assistant attorney general, for more details.

Kanter said competition made devices and services more private and more secure, and “our complaint explains very clearly that legal exclusionary conduct that Apple has engaged in is not necessary to protect privacy”.

He concluded: “Our complaint explains in many instances that Apple's conduct has made its ecosystem less private and less secure.”

Asked why he though the government was in a position to prosecute this case, where others had failed, Garland said at the news conference earlier that the US "normally wins the cases it brings".

Jonathan Kanter added that the case "focuses on Apple's core monopoly, which is the iPhone".

He said prosecutors had "identified a pattern of behaviour" by Apple, where the company aimed to reinforce its monopoly power by excluding rivals and stifling innovation.

"The extensiveness and specificity of the complaint speaks for itself."

Lets go back to what we just heard at the news conference. After their statements the speakers took questions from the press.

Merrick Garland was asked what it said to him that some of America's biggest and most successful firms - tech companies such as Google and Meta, as well as Apple - were all accused of illegal behaviour.

He responded:

Garland acknowledged that the DOJ had devoted more "resources" to the issue.

That's an admission of the way Washington has become more focused on tech companies, as public concerns grow about their power.

The press conference has just wrapped up, but there's plenty of information from it that we will bring you shortly.

Stay tuned as we unpack the details of this historic lawsuit.

Kanter tells the news conference that consumers are paying more for digital goods, services and subscriptions today. And that “smartphone users are losing out on new innovative and more secure features that could reduce the need for the expensive hardware”.

Kanter says that as Apple gains more control over the creation and distribution of content, “developers, artists, content creators are paying hefty fees”.

He believes that: “Credit card fees for tap-to-pay transactions initiated from an iPhone cost the US economy billions of dollars.”

Image source, Getty Images

Kanter, the official who leads anti-monopoly work at the Department of Justice, goes on to say that the lawsuit will offer evidence from Apple's own internal communications, as executives strategized how to keep people inside its network.

"Apple has long relied on contractual restrictions rather than competition on the merits - we know in this case Apple's internal documents tell us as much," he says.

One example? An email to famed Apple boss Steve Jobs saying an ad suggesting it was easy to switch from iPhone to Android was "not fun to watch".

Jonathan Kanter - the assistant attorney general - tells the press conference that this move is in order to protect competition and innovation for the next generation of technology.

He saws "the law mandates that competition, and not Apple's self-interest... delivers innovation and choice".

Kanter says "it's hard to think of a product that is more essential to our daily lives than smartphones".

Earlier in the press conference, Garland said Apple "makes it more difficult" for iPhone users to message those not using Apple devices.

Garland says this was done by Apple "diminishing the functionality of its own messaging app", and that of any third-parties.

This, he says, "any iPhone user that has ever seen a green text message...can attest".

The US suit comes just two weeks after Apple faced a similar antitrust hit in the EU.

The tech giant was fined €1.8bn ($1.9bn, £1.5bn) by the European Commission for breaking competition laws over music streaming.

Apple was found to have stopped streaming services like Spotify from informing users of ways to pay outside of Apple's own app store.

These businesses were frustrated both by this restriction and the fact that Apple took a 30% fee every time someone paid using its own payment system.

Commissioner Margrethe Vestager said Apple had been abusing its dominant position in the market for a decade, and ordered it to remove the restrictions.

She said it had restricted developers from "informing consumers about alternative, cheaper music services available outside of the Apple ecosystem".

But Apple plans to appeal against the decision, and says there is no evidence that consumers had been harmed.

"The decision was reached despite the Commission's failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast," it said.

Image source, AFP

Deputy Attorney General Lisa Monaco takes over from Garland, and starts with stating that they have used all necessary sources to hold Apple accountable.

“Competition fuels and drives our nation’s economy, these laws keep prices in check and they open doors to innovation. Today the department alleges that Apple crosses the line from rigorous competition to anti-competitive exclusion.”

Monaco adds that “Apple has gone from revolutionising the smartphone market to stalling its advancement”.

She says that 16 other attorney generals agreed and joined the lawsuit against Apple.

Garland goes on to accuse Apple of "stifling innovation". He says the company "hurts producers and workers" and "increases costs for consumers".

"If left unchallenged", he says, "Apple will only continue to strengthen its smartphone monopoly".

Image source, AFP

Garland is now speaking about how Apple is driving the use of smart watches, saying that: “We allege Apple has employed a strategy that relies on exclusionary, anti-competitive conduct that hurts both consumers and developers.”

He goes on to talk about Apple's status in the marketplace:

“Today Apple's share of the entire smartphone market in the US exceeds 65%. Apple has maintained a monopoly market violating federal antitrust law.”

Attorney General Merrick Garland is holding a press conference to announce the lawsuit - a sign of the high-profile battle that is about to begin between one of the world's biggest companies and the US justice department.

Garland is saying that Apple has maintained its dominance of the smartphone market by "locking its customers in" and "locking its competitors out".

In other words, the company made it difficult for rivals to access its hardware and software, limiting the development of products that could be used on anything other than an iPhone.

We've just been sent Apple's response.

Here it is in full:

"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.

"This 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.

"It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.

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

The US has filed a landmark lawsuit against Apple which accuses the tech giant of monopolising the smartphone market and crushing competition.

In the lawsuit, the justice department alleges the company used its power to limit competitors as well as the options available to consumers.

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

It is the third time the company has been sued by the justice department since 2009.

Stay tuned for our live coverage