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TABLE OF CONTENTS
I. Introduction ......................................................................................................................... 5
II. Defendant Apple ............................................................................................................... 16
A. Apple launched the iPod, iTunes, and the iTunes Store against the backdrop of
United States v. Microsoft ..................................................................................... 18
B. Apple invited third-party investment on the iPhone and then imposed tight
controls on app creation and app distribution ....................................................... 21
III. Smartphones Are Platforms .............................................................................................. 24
IV. Apple Unlawfully Maintains Its Monopoly Power ........................................................... 26
A. Apple harms competition by imposing contractual restrictions, fees, and taxes on
app creation and distribution ................................................................................. 26
i. Super Apps: Apple prevented apps from threatening its smartphone
monopoly by undermining mini programs that reduce user dependence on
the iPhone.................................................................................................. 29
ii. Cloud Streaming Apps: Apple prevented developers from offering cloud
gaming apps that reduce dependence on the iPhone’s expensive hardware
................................................................................................................... 32
B. Apple uses APIs and other critical access points in the smartphone ecosystem to
control the behavior and innovation of third parties in order to insulate itself from
competition ........................................................................................................... 35
i. Messaging: Apple protects its smartphone monopoly by degrading and
undermining cross-platform messaging apps and rival smartphones ....... 35
ii. Smartwatches: Apple protects its smartphone monopoly by impeding the
development of cross-platform smartwatches .......................................... 39
iii. Digital Wallets: Apple restricts cross-platform digital wallets on the
iPhone, reinforcing barriers to consumers switching to rival smartphones
................................................................................................................... 42
C. Apple’s “moat” around its smartphone monopoly is wide and deep: it uses a
similar playbook to maintain its monopoly through many other products and
services .................................................................................................................. 46
V. Anticompetitive Effects .................................................................................................... 49
A. Apple’s conduct harms the competitive process ................................................... 49
B. Apple has every incentive to use its monopoly playbook in the future ................ 54
VI. Privacy, Security, and Other Alleged Countervailing Factors Do Not Justify Apple’s
Anticompetitive Conduct .................................................................................................. 55
VII. The Smartphone Industry .................................................................................................. 57
Case 2:24-cv-04055 Document 1 Filed 03/21/24 Page 14 of 88 PageID: 14