Statement by Robert H. Bork Jr., President of the Antitrust Education Project, on Department of Justice antitrust action against Apple

March 21, 2024

Today’s announcement marks the capstone of the progressive attack on the last of our country’s most innovative tech companies. It also marks a return to the long-discredited antitrust era of “big must always be bad.”

The first reporter in today’s news conference asked Attorney General Garland what it says about our nation if FTC and DOJ are now pursuing antitrust actions against “four of the greatest American business success stories in modern history.” In response, General Garland fumbled around and got back to his comfort zone of legal hair splitting.

The Biden Administration’s world view, shared by ultra-progressive European regulators, would explain America’s business exceptionalism and global leadership in innovation – exemplified by Apple, Amazon, Google, and Meta – to be nothing more than monopolistic gamesmanship. That’s a misreading of history, the current market, the innovation leadership of America, and the desires of U.S. and global consumers.

The first question DOJ will have to clear: Is Apple a monopoly in the smartphone market? Short answer: No. DOJ seems to be squinting at the data in such a way that they can claim a monopoly, for instance going after a category of “performance smartphones.” That distinction will have to hold up in court with economic arguments that will be scrutinized by a judge. If Apple is not a monopoly in smartphones then game over and the Biden Administration can chalk up yet another antitrust loss.

The second question DOJ will have to clear: Are Apple’s practices harming consumers. A judge will surely scrutinize DOJ’s assertion that Apple charges “up to” $1,600 for a top-of-the-line iPhone Pro-Max, with all the bells and whistles. It overlooks competitively priced options like the iPhone SE. That’s like saying that GM is charging customers “up to” $340,000 for a car (Cadillac Celestiq), ignoring the fact that GM can put you behind the wheel for less than $25,000.

Consumers flock to Apple because many enjoy the integration of superior hardware and software, in a sleek design, supported by a host of services. Consumers can always go to Android or Samsung for a quality smartphone with most of the same apps.

This lawsuit is just the latest from the progressive antitrusters now in power in their war on American innovation, job creation and economic growth. Alden Abbott said it best: “This lawsuit discourages U.S. digital market innovation and would, if it succeeded, harm consumers and the U.S. economy. China’s leadership must be smiling.”