The Justice Department’s top antitrust official said Friday apple Shareholders should encourage the company to “compete on merit” a day after the government sued the iPhone maker over alleged anti-competitive behavior.
“Fair competition is good for everyone,” Assistant Attorney General for Antitrust Affairs Jonathan Kanter said on CNBC’s “Squawk Box.”
“It’s good for business. It’s good for consumers. It’s good for the economy, so ultimately that’s what this lawsuit is about,” Kanter added.
The U.S. Department of Justice filed a lawsuit against Apple on Thursday, accusing the company of using anti-competitive tactics to control the smartphone market. The lawsuit alleges that an important part of Apple’s ecosystem is designed to make it easier for consumers to continue buying iPhones, even at the expense of more innovative features, making it easier to exit the ecosystem.
Apple said in a statement on Thursday that the lawsuit “threatens our identity” and will “set a dangerous precedent.”
Experts told CNBC that the lawsuit could take years and that Apple could seek to have it dismissed. But the bigger risk for Apple and its shareholders in the interim, these experts say, is the distraction and scope of antitrust litigation, which could divert top executives’ attention away from the business and toward fighting the government’s accusations.
Apple shares fell about 4% on Thursday after the Justice Department announced the lawsuit and were essentially flat on Friday morning.
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