Apple seeks dismissal of US lawsuit alleging monopoly in smartphone market

In Short:

Apple is fighting a lawsuit that accuses them of monopolizing the smartphone market and raising prices. They claim they face tough competition and cannot charge unreasonable prices. The government alleges Apple uses its power to profit from consumers and partners. Apple denies locking consumers in and says people can switch to other platforms. The case is ongoing.

Apple Plans to Dismiss Lawsuit Alleging Smartphone Market Monopoly

Apple announced on Tuesday its intention to seek the dismissal of a lawsuit brought by the Justice Department and 15 states in March. The lawsuit claims that Apple has monopolized the smartphone market, leading to harm for smaller competitors and increased prices for consumers.

Apple’s Defense

In a letter to US District Judge Julien X. Neals in New Jersey, Apple argued that it faces strong competition from established rivals and does not have the ability to charge excessively high prices or limit output in the smartphone markets mentioned in the complaint. The company also criticized the DOJ’s novel theory of antitrust liability, which it claims has not been recognized by any court.

Response Expected

The government has seven days to respond to Apple’s letter, as per the court’s requirements to expedite the legal process. The Justice Department has accused Apple of utilizing its market dominance to extract higher prices from consumers and various business partners, alleging that the company maintains an illegal monopoly on smartphones through contractual restrictions and limited access for developers.

Apple’s Rebuttal

Apple refuted the government’s allegations regarding consumer lock-in and price manipulation, arguing that dissatisfied consumers have the option to switch to competing platforms without similar restrictions. The company emphasized that it does not violate antitrust laws by charging higher prices, as claimed by the Attorney General Merrick Garland in March.

© Thomson Reuters 2024