WASHINGTON (Reuters) - The U.S. has filed a lawsuit against Apple with the aim of increasing competition for the iPhone and giving a leg up to smaller companies whose apps work with the ubiquitous device.

In the lawsuit against the $2.7 trillion company, the U.S. argues the iPhone maker hurt smaller rivals and drove up prices, and the Justice Department is asking the court "to restore competitive conditions in the markets affected by Apple's unlawful conduct".