U.S. District Judge Julien Neals in Newark, New Jersey, ruled in favor of the U.S. Department of Justice’s lawsuit against Apple, denying Apple’s motion to dismiss the case.
The lawsuit accuses Apple of unlawfully dominating the U.S. smartphone market by imposing restrictions on third-party app and device developers, thereby inhibiting users from switching to competing products and monopolizing the market.
The big picture: The decision allows the case to proceed, signifying a potential lengthy legal battle as the DOJ seeks to reduce barriers to competition with Apple’s iPhone.
- The focus of the lawsuit, initiated in March 2024, centers on Apple’s limitations and fees imposed on app developers, as well as technical obstacles to third-party devices and services that could rival Apple’s offerings, such as smartwatches, digital wallets, and messaging services.
- The DOJ, along with several states and Washington, D.C., contends that these practices stifle competition and advocate for blocking Apple from continuing them.
- Despite Apple’s arguments that its restrictions on third-party developers’ access to its technology were reasonable and that sharing technology with competitors would hinder innovation, the court’s ruling aligns with the broader landscape of U.S. antitrust cases against major tech companies during both the Biden and first Trump administrations.
