Apple said in a statement that the Department of Justice lawsuit "threatens who we are and the principles that set Apple products apart in fiercely competitive markets." Apple has long argued that its business model of creating a tightly controlled ecosystem of software and hardware benefits its customers.

"If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect," Apple said. "It would also set a dangerous precedent, empowering government to take a heavy hand in designing people's technology."

The company has touted the economic success within the developer community from the App Store. Apple's App Store ecosystem generated $1.1 trillion in developer billings and sales in 2022, according to Analysis Group. Apple asserted that more than 90% of billings and sales went to developers and businesses without any commission given to Apple.

"As this [Analysis Group] report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we're as committed as ever to investing in developers' success and the app economy's future," Apple Chief Executive Tim Cook said in a statement in May.

But some analysts say that Apple's competitors make smaller profits but still provide a level of security and service that protects consumers — and therefore, Apple should be less restrictive. .

"Apple's margins are much larger than the rest of the industry and that makes them a target for this," said Rob Enderle, principal analyst with advisory services firm Enderle Group. "When a company has what appears to be excessive margin, it raises the potential of an abuse of monopoly power."

Critics say that Apple abuses its position as a gatekeeper for the App Store, launching similar Apple products that directly compete against rivals and put them at a disadvantage.

For example, Apple released its own streaming music service, Apple Music, which competes directly with Spotify. Apple foes say that the company has a competitive advantage because it not only owns the iPhone but also controls the software system and App Store. Apple also controls which apps are pre-installed on its iPhones.

"It's finally bringing to light a lot of the practices that Apple engages in that those within the industry often don't have the ability to complain about, because they just either are afraid of Apple or don't have the resources to go up against one of the world's richest companies," said Adam Wolfson, a lawyer who represented Mountain View, Calif.-based AliveCor when it sued Apple in 2021 over related concerns.

AliveCor's lawsuit, which accused Apple of wielding monopoly power through Apple Watch apps, was recently dismissed, but the company said it plans to appeal. Apple said that the judge's ruling "confirms that it is not anticompetitive" in a statement released to Reuters.

"Apple is not the best at everything and there are numerous examples of apps out there where Apple has had it pushed or made its own version, and it's not as high quality as what third parties have developed," said Wolfson, a partner at Quinn Emanuel. "By (Apple) constantly putting itself at the forefront, it's often making it so that consumers don't have a choice of the best option."

Other industry observers say the Department of Justice lawsuit could also bring about more usability across different apps or services on Apple. For example, by making it less awkward when Apple users text with Android customers.

"The green text chains with the one non-Apple friend could be coming to an end," Ives said.

Many analysts see similarities to the Department of Justice lawsuit and settlement with Microsoft over antitrust practices in 2002, which gave computer manufacturers more freedom in putting other web browsers on their machines not made by Microsoft.

"It set the tone for the whole internet age," Court said. "If Microsoft had been allowed to dominate that market, we would never have the proliferation of companies that came about with innovative products. If Microsoft could have forced everyone who had a Windows operating system to use their browser, then there'd be no Google."

(Los Angeles Times staff writer Hannah Fry contributed to this report.)

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