Now it faces a justice department (DOJ) lawsuit accusing it of illegally monopolising the US smartphone market. A federal judge on Monday said the Apple monopoly case will go to court, a significant milestone for antitrust enforcers and their legal fight against Apple.
US District Judge Julien Neals in Newark, New Jersey, refused Apple’s bid to dismiss the Apple monopoly case. The judge held that there is legal merit for the Apple-monopoly lawsuit to move forward, according to claims that the company blocks third-party developers and device manufacturers, in a move which makes it more difficult for consumers to move to competing platforms.
The ruling could pave the way for a protracted legal battle as the Apple monopoly case progresses. Apple unfairly slaps restrictions on developers and fees on their business while also throwing up technical roadblocks to prevent competitors from developing smartwatches, messaging apps or digital wallets that could vie with Apple products, the lawsuit by the DOJ says.
The Apple monopoly lawsuit gained national notoriety when Apple unveiled a new budget iPhone in February 2024 selling at a $170 costlier than its predecessor. Even with the higher price, the iPhone remains the world’s leading smartphone seller — and 2024 revenue from the phone is expected to reach $201 billion. This commercial supremacy is what the Apple monopoly case revolves around.
In the Apple monopoly suit, the DOJ and a handful of states — but not Washington, D.C. — argue that Apple’s moves harm customers and stifle innovation. The lawsuit hopes to force Apple to stop these allegedly anti-competitive practices.
An Apple spokesman replied to say that the company continues to believe the Apple monopoly case is meritless and they will vigorously defend against it. The DOJ has not further addressed the Apple monopoly case.
Apple says the restrictions it imposes are fair and meant to ensure quality of user experience and security, and argues that to make it open access to its technology would stymie innovation. But the DOJ argues that this behavior provides Apple with an unfair advantage, helping them continue to lead the smartphone industry which is what the Apple monopoly case is primarily all about.
The Apple monopoly complaint is one of a number of antitrust cases filed against Big Tech companies. Meta (Facebook) and Amazon, as well as Alphabet (Google’s parent), are wrestling with litigation of their own on the same topic. The cases are part of a wider effort by US watchdogs to clamp down on what they see as monopolistic conduct across the tech sector.
As the Apple monopoly case develops, it’s likely to be one of the most important legal showdowns in the battle between the regulators and Big Tech. The consequence could be far-reaching in reshaping how companies like Apple can operate in a market that has become the target of intense scrutiny over competition and fairness.
