Apple Seeks Dismissal of US Lawsuit That Accuses iPhone Maker of Monopolising Smartphone Market

Apple stated on Tuesday it plans to ask a US choose to dismiss a lawsuit filed by the Justice Department and 15 states in March that alleged the iPhone maker monopolized the smartphone market, harm smaller rivals and drove up costs.

In a letter to US District Judge Julien X. Neals in New Jersey, Apple stated “far from being a monopolist, Apple faces fierce competition from well-established rivals, and the complaint fails to allege that Apple has the ability to charge supra-competitive prices or restrict output in the alleged smartphone markets.”

In the letter to the choose, Apple stated the DOJ depends on a brand new “theory of antitrust liability that no court has recognized.”

The authorities is predicted to reply inside seven days to the Apple letter, which the courtroom requires events to submit, hoping to expedite circumstances earlier than advancing to a probably extra sturdy and costly effort to dismiss a lawsuit.

The Justice Department alleges that Apple makes use of its market energy to get more cash from shoppers, builders, content material creators, artists, publishers, small companies and retailers. The civil lawsuit accuses Apple of an unlawful monopoly on smartphones maintained by imposing contractual restrictions on, and withholding essential entry from, builders.

The Justice Department, which didn’t instantly remark, has beforehand stated Apple costs as a lot as $1,599 for an iPhone and makes a bigger revenue than any rival. Officials additionally stated Apple imposes hidden costs on numerous enterprise companions – from software program builders to bank card corporations and even rivals similar to Alphabet’s Google, in ways in which finally increase costs for shoppers.

Apple rejected the federal government’s contentions that the iPhone has stored shoppers “locked in” to the gadgets. “Someone unhappy with Apple’s limitations has every incentive to switch to competitor platforms that ostensibly do not have those limitations,” the letter stated.

“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland stated in March. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”

© Thomson Reuters 2024