Bezos’ Amazon Fire Phone Cited in the US Justice Department’s Antitrust Lawsuit Against Apple


Title: Bezos’ Amazon Fire Phone Cited in the US Justice Department’s Antitrust Lawsuit Against Apple

Key Takeaways:

– The US Justice Department files an antitrust lawsuit against Apple, claiming an illegal smartphone monopoly.
– The suit cites examples of tech giants like Amazon and Microsoft struggling to compete in the smartphone market.
– The lawsuit mentions Amazon’s short-lived Fire Phone released in 2014.
– The barriers of entry in the mobile phone industry are highlighted with Google being a distant third to Apple and Samsung.
– Only Samsung and Google remain as notable competitors in the high performance US smartphone market.

The US Justice Department (DOJ) presented a historic antitrust lawsuit against Apple this Thursday morning. The central argument being that Apple has illegally maintained a monopoly over the smartphone market. The lawsuit, at certain instances, reads like a chronicle of technology history.

Strong Echoes of the Microsoft Case in the 90s

The legal document frequently recalls the DOJ’s prior antitrust lawsuit against Microsoft, which dealt with the alleged Windows monopoly during the late 90s. The recent filing further benchmarks the iPhone’s dominant market position against the inability of other tech giants, including Microsoft and Amazon, to institute a viable competitive footing.

Mobile Market – A Graveyard of Fallen Giants

The lawsuit narrated a bleak tale of failed mobile ventures in the industry. In a particular section, the suit outlined how numerous well-funded companies failed to make a dent in the market due to the formidable barriers to entry. One of the significant examples mentioned was Amazon’s unsuccessful attempt with the Fire Phone.

Launched in 2014 by Amazon founder Jeff Bezos, the Fire Phone failed to sustain profitability and consequently exited the following year. The DOJ suit lists Amazon alongside Microsoft, which discontinued its mobile business in 2017. Other casualties include HTC and LG, both of which abandoned the smartphone market in 2017 and 2021 respectively.

Today, only Samsung and Google remain as strong contenders in the market against the iPhone. The lawsuit emphasizes that the barriers are so high that Google, which controls the development of the Android operating system, holds a distant third position after Apple and Samsung in the US performance smartphone market.

Apple’s Defense

Meanwhile, Apple is predicted to challenge these allegations by attributing these market exits to the respective companies’ failures, absolving itself of any illegal conduct. The tech giant is expected to assert that it does not wield unlawful power in the market, but rather offers a superior product that consumers prefer.

This lawsuit has ignited conversations surrounding competition and monopoly in the tech industry. With the magnitude of companies like Amazon and Microsoft struggling to make a breakthrough in the smartphone market, it underscored the formidable barriers posed to new entrants. As the legal proceeding unfolds, the industry would be keeping a keen eye on its developments.

Jonathan Browne
Jonathan Browne
Jonathan Browne is the CEO and Founder of Livy.AI

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