The Biden administration filed a lawsuit against Apple on Thursday, alleging that the tech giant has created a monopoly in the smartphone marketpreventing its competitors from gaining access to both iPhone hardware and software features.

The suit, filed by the US Department of Justice in a New Jersey federal court, is the latest move in a series of efforts by the US government to limit the illegal, as he claims, antitrust behavior adopted by some of the country’s biggest tech giants. Sixteen state and attorney generals have joined the US Department of Justice on this particular lawsuit.

“We claim that Apple has maintained its monopoly power in the smartphone market, not only staying ahead of the competition, but also violating federal antitrust laws” said Attorney General Merrick Garland. “Left unchecked, it will continue to strengthen its monopoly on the smartphone market.”

According to CNBC the lawsuit could lead Apple to implement changes in some of its most valuable businesses: The iPhone, from which the giant had sales of more than $200 billion in 2023, the Apple Watch, but also the profitable service line from which it collected revenues of $85 billion.

In her announcement Apple responded that it disagreed with the lawsuit’s reasoning.

“The lawsuit threatens our identity and our principles that make Apple products stand out in a fiercely competitive environment. If the lawsuit is won, it means we will no longer be able to create the kind of technology that consumers expect from Apple – where hardware, software and services intersect,” an Apple spokesperson told CNBC.

The stock goes down

Apple’s stock reacts with a 3.34% drop on news of the lawsuit and is trading at $172.70 YTD, the tech giant’s stock is down 10%.