A class action lawsuit has been filed in California against Google, Apple and the CEOs of both tech giants for allegedly violating antitrust laws, according to a press release.
The complaint calls for the breakup of Google and Apple into separate and independent companies in keeping with the precedent of the of Standard Oil company into Exxon, Mobile, Conoco, Amoco, Sohio, Chevron and others, the release stated.
Charges in the suit allege that Google and Apple have agreed that Apple would keep out of the internet search business against Google, according to the release. It also claims Google shares its search profits with Apple and gives Apple preferential treatment for all Apple devices; annual multi-billion-dollar payments by Google to Apple not to compete in the search business; suppression of smaller competitors to keep them from the search sector; and acquiring competing companies.
Allegations also include higher advertising rates than rates that would be in a competitive system, the release stated.
Attorneys are seeking an end to the alleged billion-dollar payments to Apple from Google and asking the court to prohibit non-compete agreements between the two companies and end the profit-sharing agreement and the preferential treatment for Google on Apple devices, according to the release.
“These powerful companies abused their size by unlawfully foreclosing and monopolizing major markets which in an otherwise free enterprise system would have created jobs, lowered prices, increased production, added new competitors, encouraged innovations and increased the quality of services in the digital age,” Joseph M. Alioto of Alioto Law, who is representing the plaintiffs, said in the release.
The companies could not immediately be reached for comment. In the past, Apple and Google have denied any allegations of violations of antitrust laws.
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