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App store creator Cydia sued Apple Inc. for unspecified damages in the Oakland, California federal court for illegally monopolizing software distribution on its operating system.
Cydia, which was created in 2008, alleged that Apple has illegally squashed all competition for its App Store, thereby depriving consumers the choice of where to obtain iOS apps and developers from choosing distributors.
Cydia is said to be on the verge of closing and possible bankruptcy.
Apple said that it will review the lawsuit while insisting that it does not monopolize the market.
The Cupertino, California-based Apple also said it discourages consumers from trying to unlock their iPhones to install unauthorized software for security reasons.
Cydia, also known as SaurikIT, was created by software engineer Jay Freeman.
Apple has a market value exceeding $2 trillion.
