Locked In, Left Out: Apple’s Antitrust Dilemma

The Green Bubble Divide and the App Store Monopoly

Abstract

This paper analyzes the U.S. Department of Justice’s 2024 antitrust lawsuit against Apple Inc., which accuses the company of unlawfully monopolizing the smartphone market in violation of Section 2 of the Sherman Act. Drawing on legal doctrines such as the Essential Facilities Doctrine, Refusal to Deal, Two-Sided Market Analysis, and Technological Tying, the paper argues that Apple’s tightly controlled ecosystem, built through proprietary payment systems, restricted app distribution, and limited repair options, has created significant barriers to competition and inflated consumer costs. Apple’s compliance behavior, the paper contends, is strategically adapted to each jurisdiction’s regulatory demands, highlighting the challenges of governing multinational tech firms across fragmented legal systems. This paper contrasts the reactive, litigation-based approach of U.S. antitrust enforcement with the European Union’s proactive regulatory model under the Digital Markets Act (DMA), which mandates interoperability, app store alternatives, and fair access for rival services. Ultimately, the paper advocates for a hybrid approach to digital competition policy that combines the dynamism of U.S. markets with the structural accountability of EU regulation, calling for stronger enforcement tools, mandatory interoperability, and modernized legal interpretations capable of confronting platform dominance in the digital age.