Connecticut, along with the U.S. Department of Justice and 15 other states, has filed a civil antitrust lawsuit against Apple Inc. for monopolizing smartphone markets in violation of the Sherman Act. The complaint alleges Apple engages in anticompetitive conduct such as blocking innovative apps, suppressing cloud streaming services, and limiting interoperability to maintain its monopoly and impose high costs on consumers and developers. The plaintiffs seek equitable relief to restore competition.
The lawsuit seeks equitable relief, including injunctions, to end Apple's anticompetitive conduct and restore competition in smartphone markets, but no specific remedies have been imposed at this time.
In-house legal teams should review all vendor and developer agreements, particularly those governing app distribution, platform access, and interoperability. Focus on clauses that impose restrictions on cross-platform functionality, mandate exclusive use of Apple's services or payment systems, define relevant markets in a way that reinforces monopoly power, or contain MFN provisions that prevent more favorable terms with competitors. Changes may be needed to remove or modify anticompetitive restrictions, ensure fair access to essential interfaces and tools, and allow developers and consumers greater freedom to choose alternative products and services without penalty.
Entity
Apple Inc.
Also known as: Apple
Industry
TechnologyOfficial Press Release
https://portal.ct.gov/ag/press-releases/2024-press-releases/connecticut-joins-justice-department-suing-apple-for-monopolizing-smartphone-markets
apple file stamped complaint 32124.pdf?rev=e1b87aa808be4d67a
https://portal.ct.gov/-/media/ag/press_releases/2024/apple-file-stamped-complaint-32124.pdf?rev=e1b87aa808be4d67a5d3af801268c95a&hash=3EE6438399E31E69C7CB721D13456421
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$150K
New Jersey Attorney General Matthew Platkin announced a settlement with Apple Inc. over allegations of widespread merchandise pricing violations at 11 Apple stores statewide, including failure to display required pricing information and refund policies. Apple agreed to pay a $150,000 civil penalty, the largest-ever under New Jersey's Merchandise Pricing Act, and implement revised business practices to ensure clear pricing and refund policy disclosures. The settlement resolves violations of the New Jersey Consumer Fraud Act and the 2017 consent order previously entered into by Apple.
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.