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      U.S. Sues Apple, Accusing It of Maintaining an iPhone Monopoly

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      The lawsuit caps years of regulatory scrutiny of Apple’s wildly popular suite of devices and services, which have fueled its growth into a nearly $3 trillion public company.The Justice Department and 16 state attorneys general filed an antitrust lawsuit against Apple on Thursday, the federal government’s most significant challenge to the reach and influence of the company that has put iPhones in the hands of more than a billion people.The government argued that Apple violated antitrust laws by preventing other companies from offering applications that compete with Apple products like its digital wallets, which could diminish the value of the iPhone. Apple’s policies hurt consumers and smaller companies that compete with some of Apple’s services, according to excerpts from the lawsuit released by the government, which was filed in the U.S. District Court for the District of New Jersey.“Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the government said in the lawsuit.The lawsuit caps years of regulatory scrutiny of Apple’s wildly popular suite of devices and services, which have fueled its growth into a nearly $2.75 trillion public company that was for years the most valuable on the planet. It takes direct aim at the iPhone, Apple’s most popular device and most powerful business, and attacks the way the company has turned the billions of smartphones it has sold since 2007 into the centerpiece of its empire.By tightly controlling the user experience on iPhones and other devices, Apple has created what critics call an uneven playing field, where it grants its own products and services access to core features that it denies rivals. Over the years, it has limited finance companies’ access to the phone’s payment chip and Bluetooth trackers from tapping into its location-service feature. It’s also easier for users to connect Apple products, like smartwatches and laptops, to the iPhone than to those made by other manufacturers.The company says this makes its iPhones more secure than other smartphones. But app developers and rival device makers say Apple uses its power to crush competition.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Read the Lawsuit Against Apple

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      Case 2:24-cv-04055 Document 1 Filed 03/21/24 Page 4 of 88 PageID: 4

      across many technologies, products, and services, including super apps, text messaging, smartwatches, and digital wallets, among many others.

      Apple’s conduct also stifles new paradigms that threaten Apple’s smartphone dominance, including the cloud, which could make it easier for users to enjoy high-end functionality on a lower priced smartphone- -or make users device-agnostic altogether. As one Apple manager recently observed, “Imagine buying a [expletive] Android for 25 bux at a garage sale and it works fine…. And you have a solid cloud computing device. Imagine how many cases like that there are.” Simply put, Apple feared the disintermediation of its iPhone platform and undertook a course of conduct that locked in users and developers while protecting its profits.

      Critically, Apple’s anticompetitive conduct not only limits competition in the smartphone market, but also reverberates through the industries that are affected by these restrictions, including financial services, fitness, gaming, social media, news media, entertainment, and more. Unless Apple’s anticompetitive and exclusionary conduct is stopped, it will likely extend and entrench its iPhone monopoly to other markets and parts of the economy. For example, Apple is rapidly expanding its influence and growing its power in the automotive, content creation and entertainment, and financial services industries-and often by doing so in exclusionary ways that further reinforce and deepen the competitive moat around the iPhone.

      This case is about freeing smartphone markets from Apple’s anticompetitive and exclusionary conduct and restoring competition to lower smartphone prices for consumers, reducing fees for developers, and preserving innovation for the future. The United States and the States of New Jersey, Arizona, California, Connecticut, Maine, Michigan, Minnesota, New Hampshire, New York, North Dakota, Oklahoma, Oregon, Tennessee, Vermont, Wisconsin, and the District of Columbia, acting by and through their respective

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      Criminal Inquiry Into Boeing Panel Blowout Expands

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      The Justice Department, which is investigating the blowout of a panel on an Alaska Airlines flight, is using a recently convened grand jury in Seattle.The Justice Department is sending subpoenas and using a recently convened grand jury in Seattle as it widens a criminal investigation into the door plug that blew off a Boeing 737 Max 9 jetliner in January, a person familiar with the matter said on Friday.The detachment of the panel from the fuselage of an Alaska Airlines flight shortly after takeoff terrified passengers at 16,000 feet and required an emergency landing back at Portland International Airport in Oregon. A preliminary report by the National Transportation Safety Board said four bolts meant to secure the door plug in place were missing before the panel blew off.This month, it was reported that the Justice Department had opened a criminal investigation of Boeing, which had reinstalled the door plug during maintenance in Renton, Wash., before delivering the plane to Alaska Airlines in October.The subpoenas and use of the grand jury were reported earlier Friday by Bloomberg.The midair incident on Jan. 5 led the Federal Aviation Administration to ground more than 170 Max 9 planes, which were then inspected for construction flaws. Boeing said it agreed with the F.A.A.’s decision and pledged to cooperate. The company has said safety is its top priority.The Max 9s have since restarted flights, but questions remain about the malfunction. A grand jury could be asked to decide whether a criminal prosecution is warranted. A likely focus would be repairs to the Alaska Airlines plane’s rivets, which are often used to join and secure parts on planes, by workers at the Boeing plant in Renton.The episode has brought a fresh round of scrutiny to Boeing. The company made grim headlines in 2018 and 2019 when two crashes of another 737 model, the Max 8, killed 346 people. Max 8 jets were grounded for almost two years. The company subsequently spent more than $2.5 billion to settle a criminal charge that Boeing had defrauded the F.A.A., and the company’s chief executive, Dennis Muilenburg, was fired.Under his replacement, Dave Calhoun, Boeing’s stock has risen, though the company has struggled to meet airlines’ demands. Production of the 737 Max fell to about half of Boeing’s stated goals last year, as the company was bedeviled by supply chain issues with key suppliers and problems with fuselages.Now, the company is facing far steeper challenges. Two days after the door plug incident, Mr. Calhoun sent a memo to employees stating that “while we’ve made progress in strengthening our safety management and quality control systems and processes in the last few years, situations like this are a reminder that we must remain focused on continuing to improve every day.” More

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      Poised and Precise, Hur Enters Fray Over Special Counsel’s Report on Biden

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      Robert K. Hur defended himself in the unhurried, forceful cadence of a veteran prosecutor, delivering his responses in a flat, matter-of-fact tone.The former special counsel Robert K. Hur, denounced by Democrats for his unsparing description of President Biden’s memory lapses, had one of his own during his testimony on Tuesday before the House Judiciary Committee.Representative James R. Comer, a Kentucky Republican, made passing reference to Dana A. Remus, a Democratic lawyer who had served as White House counsel under Mr. Biden from January 2021 to July 2022.Mr. Hur crinkled an eyebrow and corrected him: No, he said, she occupied that post under President Obama.The misstep was an isolated moment in an otherwise poised and precise appearance by Mr. Hur, 51, who was testifying about his report on the investigation into Mr. Biden’s handling of classified documents.Mr. Hur, a Trump-era Justice Department official known among former colleagues for keeping a cool head in high-stress, high-stakes situations, incited a furor after describing the president as a “well-meaning, elderly man with a poor memory.” A transcript of his five-hour interview with Mr. Biden, released just before his appearance, raised questions about that characterization.Before his work as special counsel, Mr. Hur, a graduate of Stanford Law School who clerked for Chief Justice William H. Rehnquist, was best known for his 11-month stint as the top aide to the deputy attorney general, Rod Rosenstein, in 2017 and 2018. It was a time of extraordinary upheaval, when Mr. Rosenstein oversaw the installment of a special counsel, Robert S. Mueller III, to investigate President Donald J. Trump’s dealings with Russia. Both men lived under the constant threat of being fired by Mr. Trump, who saw the appointment as a personal betrayal.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Subject of Criminal Inquiry by DOJ

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      The investigation is tied to an incident on an Alaska Airlines flight in early January. Boeing also told a Senate panel that it cannot find a record of the work done on the Alaska plane.The Justice Department has begun a criminal investigation into Boeing after a panel on one of the company’s planes blew out on an Alaska Airlines flight in early January, a person familiar with the matter said.The airline said it was cooperating with the inquiry. “In an event like this, it’s normal for the D.O.J. to be conducting an investigation,” Alaska Airlines said in a statement. “We are fully cooperating and do not believe we are a target of the investigation.” Boeing had no comment.On Jan. 5, a panel on a Boeing 737 Max 9 jet operated by Alaska Airlines blew out in midair, exposing passengers to the outside air thousands of feet above ground. There were no serious injuries resulting from that incident, but it could have been catastrophic had the panel blown out minutes later, at a higher altitude.The panel is known as a “door plug” and is used to cover a gap left by an unneeded exit door. A preliminary investigation by the National Transportation Safety Board suggested that the plane may have left Boeing’s factory without the plug bolted down.The criminal investigation was first reported by The Wall Street Journal.The Justice Department has previously said it was reviewing a 2021 settlement of a federal criminal charge against the company, which stemmed from two fatal crashes aboard its 737 Max 8 plane. Under that agreement, Boeing committed to paying more than $2.5 billion, most of it in the form of compensation to its customers. The Justice Department agreed to drop the charge accusing Boeing of defrauding the Federal Aviation Administration by withholding information relevant to its approval of the Max. It was not immediately clear if the criminal investigation was related to the review of the 2021 settlement or a separate inquiry.The deal was criticized for being too lenient on Boeing and for having been reached without consulting the families of the 346 people killed in those crashes. The first occurred in Indonesia in late 2018. After the second in Ethiopia in early 2019, the Max was banned from flying globally for 20 months. The plane resumed service in late 2020 and has since been used in several million flights, mostly without incident — until the Alaska Airlines flight on Jan. 5.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Prosecutors Charge Man With Firing Shots Outside the Capitol on Jan. 6

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      The charges once again laid bare one of the most persistent myths about the attack promoted by pro-Trump politicians and media figures: that none of the rioters were armed.A Trump supporter who prosecutors say fired a pistol into the air on the grounds of the Capitol as a mob stormed the building on Jan. 6, 2021, was charged on Friday with firearm offenses, trespassing and interfering with law enforcement officers during a civil disorder.The man, John Banuelos, fired at least two shots into the air while standing above the crowd on scaffolding on the west side of the Capitol, according to a criminal complaint unsealed in Federal District Court in Washington. It does not appear that Mr. Banuelos entered the Capitol. But before the shots were fired, prosecutors say, he posed for a photo wearing a “Trump 2020” cowboy hat and showing off a pistol tucked into his waistband.One of the most persistent lies about the Capitol attack — often made by Republican politicians and right-wing media figures — is that none of the hundreds of rioters who stormed the building had guns. On Thursday night, former President Donald J. Trump repeated the false claim on social media while responding to remarks about Jan. 6 that President Biden had made during his State of the Union address.“The so-called ‘Insurrectionists’ that he talks about had no guns,” Mr. Trump wrote. “They only had a Rigged Election.”But the Justice Department’s sprawling investigation of Jan. 6 has revealed that several people at the Capitol were carrying firearms that day. Altogether, more than 1,300 rioters have been charged in connection with the attack and arrests continue almost daily.A photo used in a Justice Department criminal complaint, showing a Jan. 6 rioter prosecutors identified as John Banuelos with a gun in his waistband.Justice DepartmentGuy Wesley Reffitt, a militiaman from Texas, was wearing a pistol on his hip when he led a charge of rioters up a staircase on the west side of the Capitol, according to testimony at his trial — the first of dozens to have taken place in Washington connected to the events of Jan. 6. Mr. Reffitt was ultimately convicted of a gun charge and other felonies and was sentenced to more than seven years in prison.Among the other rioters who were carrying firearms on Jan. 6 are Christopher Alberts, a former Virginia National Guard member who charged the police outside the Capitol with a loaded 9-millimeter pistol, prosecutors say. Mr. Alberts was convicted of multiple felony charges and sentenced to seven years in prison.A rioter named Mark Mazza brought two guns to the Capitol — a .40-caliber semiautomatic pistol and a Taurus revolver loaded with shotgun shells and hollow-point bullets, prosecutors say. Mr. Mazza was sentenced to five years in prison.Prosecutors did not identify what type of pistol Mr. Banuelos was carrying on Jan. 6, but they said in their complaint that he was not licensed to have it. Among the charges he faces are carrying and discharging a firearm on the Capitol grounds.After firing the shots, prosecutors said, Mr. Banuelos slipped the weapon back into his waistband, climbed down from the scaffolding and rejoined the crowd. More

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      Chinese National Accused of Stealing AI Secrets From Google

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      Linwei Ding, a Chinese national, was arrested in California and accused of uploading hundreds of files to the cloud.A Chinese citizen who recently quit his job as a software engineer for Google in California has been charged with trying to transfer artificial intelligence technology to a Beijing-based company that paid him secretly, according to a federal indictment unsealed on Wednesday.Prosecutors accused Linwei Ding, who was part of the team that designs and maintains Google’s vast A.I. supercomputer data system, of stealing information about the “architecture and functionality” of the system, and of pilfering software used to “orchestrate” supercomputers “at the cutting edge of machine learning and A.I. technology.”From May 2022 to May 2023, Mr. Ding, also known as Leon, uploaded 500 files, many containing trade secrets, from his Google-issued laptop to the cloud by using a multistep scheme that allowed him to “evade immediate detection,” according to the U.S. attorney’s office for the Northern District of California.Mr. Ding was arrested on Wednesday morning at his home in Newark, Calif., not far from Google’s sprawling main campus in Mountain View, officials said.Starting in June 2022, Mr. Ding was paid $14,800 per month — plus a bonus and company stock — by a China-based technology company, without telling his supervisors at Google, according to the indictment. He is also accused of working with another company in China.Mr. Ding openly sought funding for a new A.I. start-up company he had incorporated at an investor conference in Beijing in November, boasting that “we have experience with Google’s 10,000-card computational power platform; we just need to replicate and upgrade it,” prosecutors said in the indictment, which was unsealed in San Francisco federal court.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Southern Baptists Say Justice Dept. Has Closed Abuse Inquiry Into Leadership Body

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      A Southern Baptist Convention leader said federal investigators had informed the executive committee that there would be no charges against it.A Southern Baptist Convention leader said on Wednesday that the Justice Department had concluded a sexual abuse investigation into the organization’s executive committee without issuing any charges.The statement from Jonathan Howe, the executive committee’s interim president and chief executive, referred only to the closing of an investigation into the executive committee, and did not address additional Justice Department investigations into other Southern Baptist entities. A spokesman for the U.S. Attorney’s Office for the Southern District of New York, Nicholas Biase, declined to comment.Federal investigators opened the inquiry into the denomination’s handling of sexual abuse in 2022, after Baptists commissioned a third-party investigation that found national leaders in the country’s largest Protestant denomination had suppressed reports of abuse and resisted reform efforts for decades. The report prompted widespread outrage from Baptist churchgoers, and energized activists pushing the denomination for greater transparency.The S.B.C.’s executive committee, a group of 86 people who steer the denomination, said it was informed last week that the U.S. Attorney’s office had concluded its investigation “with no further action to be taken,” Mr. Howe said in the statement.“While we are grateful for closure on this particular matter, we recognize that sexual abuse reform efforts must continue to be implemented across the convention,” he said.When the investigation began, leaders in the denomination said the Justice Department was looking into “multiple S.B.C. entities,” a category that includes seminaries, missionary organizations and the denomination’s public policy arm. The leaders said at the time that they would cooperate fully.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More