LegalNews

Apple wants judge to dismiss lawsuit claiming it monopolizes the smartphone market

Apple plans to ask a U.S. judge to dismiss a lawsuit filed by the Justice Department and 15 states in March that alleged the tech giant monopolized the smartphone market, hurt smaller rivals and drove up prices.

Apple plans to ask a U.S. judge to dismiss a lawsuit filed by the Justice Department and 15 states in March that alleged the tech giant monopolized the smartphone market, hurt smaller rivals and drove up prices, reports Reuters.

In a letter to U.S. District Judge Julien X. Neals in New Jersey, Apple said “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.”

Apple said the complaint should be dismissed on a number of grounds. In the letter to the judge, Apple argues that the DOJ relies on a new “theory of antitrust liability that no court has recognized.”

In March the U.S. Department of Justice announced it had filed an antitrust lawsuit against Apple — and the tech giant responded.

From the DoJ announcement: The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Apple illegally maintains a monopoly over smartphones by selectively imposing contractual restrictions on, and withholding critical access points from, developers. Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers. Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others. Through this monopolization lawsuit, the Justice Department and state Attorneys General are seeking relief to restore competition to these vital markets on behalf of the American public.

In a statement shared with MacRumors, Apple said the lawsuit is “wrong on the facts and the law,” and the company vowed to “vigorously defend” itself:

From the statement: At Apple, we innovate every day to make technology people love—designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users. This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.