Apples Antitrust Lawsuit Dismissal Denied: DOJ and States Allege Monopolistic Practices

Apple Inc. faced a significant setback as its attempt to dismiss an antitrust lawsuit brought by the US Justice Department and a coalition of state attorneys general was denied. The lawsuit, which poses a substantial threat to Apple’s mobile hardware business, accuses the tech giant of violating antitrust laws by restricting rivals’ access to hardware and software features on its devices. The government alleges that Apple has leveraged its control over app distribution and iPhone features to stifle innovations that would facilitate easier consumer switching between phones.

US District Judge Julien Xavier Neals in New Jersey ruled that the allegations, which suggest Apple acts to protect its monopoly power in the smartphone market, are sufficient to proceed. The judge also noted that the allegations regarding Apple’s intent to monopolize the smartphone market are robust enough to continue. The ruling paves the way for potentially years of litigation, as antitrust cases often involve lengthy proceedings, including appeals.

Apple has argued that the lawsuit fails to demonstrate how its alleged monopoly has harmed consumers or developers. The company also contends that it has the legal right to choose its business partners and is not obligated to support competitors. However, the judge determined that claims related to Apple’s refusal to support cross-platform messaging apps, limitations on third-party digital wallets and non-Apple smartwatches, and blocking mobile cloud streaming services can proceed.

The Department of Justice (DOJ) asserts that the case is not about Apple’s refusal to do business with rivals but rather its use of market dominance to block competitors. The DOJ and the states argue that Apple’s actions were a deliberate attempt to create an illegal “moat” around the iPhone. The case, USA v. Apple Inc., 24-cv-04055, is ongoing in the US District Court for the District of New Jersey.