The lawsuit, filed in federal court in New Jersey, alleges that Apple has used its dominant position to stifle competition, hamper innovation, and keep prices artificially high.

Deputy Attorney General Lisa Monaco, in a statement, stated that Apple has locked consumers into its iPhone ecosystem while simultaneously blocking competitors from entering the market. She further added that the company's actions have not only impeded the progress of the industry but have also hindered the growth of an entire sector.

Apple, on the other hand, has vehemently denied the allegations made against it. The company called the lawsuit "wrong on the facts and the law" and has affirmed that it will vigorously defend itself against the legal action.

The lawsuit specifically takes issue with how Apple shapes its technology and business relationships to extract more money from various stakeholders, including consumers, developers, content creators, artists, publishers, small businesses, and merchants. It argues that Apple restricts the functionality of non-Apple smartwatches, limits access to contactless payment for third-party digital wallets, and prevents its iMessage app from exchanging encrypted messages with competing platforms.

The lawsuit seeks to prevent Apple from hindering technologies that compete with its own apps, particularly in the areas of streaming, messaging, and digital payments. It also aims to prohibit the company from entering into contracts with developers, accessory makers, and consumers that solidify its monopoly power.

Joined by 16 state attorneys general, the lawsuit demonstrates the Justice Department's commitment to enforcing antitrust laws in the rapidly expanding tech industry. In recent years, the department has brought similar actions against other tech giants such as Amazon and Google, aiming to create a more equitable, innovative, and competitive digital landscape.

Assistant Attorney General Jonathan Kanter, who heads the antitrust division, highlighted the department's history of challenging monopolies. He expressed the department's dedication to promoting competition and innovation for the next generation of technology.

As the legal battle begins, the outcome of the lawsuit could have significant repercussions for Apple and the smartphone industry as a whole. The case will be closely watched by technology companies, regulators, and consumers alike, as the verdict will shape the future of competition in the digital sphere.