The Justice Department, along with 16 state attorneys general, has filed a sweeping antitrust lawsuit against tech giant Apple, accusing the company of maintaining an illegal monopoly in the smartphone market that stifles competition and innovation. The lawsuit, filed in federal court in New Jersey, alleges that Apple uses its control over the iPhone to engage in illegal conduct that hinders fair competition.

President Joe Biden has called for increased enforcement of antitrust statutes, leading to a crackdown on corporate mergers and business deals. Apple, based in Cupertino, California, has built a digital fortress around its products, creating a "walled garden" that allows its hardware and software to seamlessly work together. This strategy has made Apple the world's most prosperous company, with annual revenue of nearly $400 billion.

Apple has defended its walled garden as a feature that protects consumers' privacy and security, distinguishing its products from competitors running on Google's Android software. However, antitrust regulators argue that the barrier is a tool used by Apple to maintain monopoly power, enabling the company to charge higher prices and stifle innovation.

The lawsuit threatens Apple's ability to innovate and design technology that consumers love, the company argues. The stock price of Apple has fallen by 7% this year, with concerns about an antitrust crackdown impacting investor confidence. The Biden administration's efforts to rein in Apple's dominance come as part of a broader antitrust siege that has targeted other tech giants like Google and Amazon.

The Justice Department's case against Apple is part of a larger effort to challenge the company's business practices, following other attempts to force changes in how Apple operates the iPhone and the App Store. Epic Games filed an antitrust lawsuit against Apple in 2020, alleging that the company's commission rates on digital transactions within apps were enabled by an illegal monopoly.

As the legal battle unfolds, Apple faces the potential loss of its smartphone monopoly and the challenges of adapting its business model to comply with antitrust laws. The outcome of the lawsuit could have far-reaching implications for the tech industry and the future of competition in the smartphone market.