Apple plans to ask the court to dismiss an antitrust lawsuit filed by 15 US states.
Washington: The Justice Department and fifteen states filed a lawsuit against the Cupertino, California-based technology giant, Apple in March. Apple has asked a US judge to dismiss the case. According to this case, the iPhone manufacturer monopolised the smartphone market, hurting smaller rivals and forcing up prices.
New filing: "Epic v. Apple (App Store Antitrust Suit)"
Doc #966: Transcript OrderPDF: https://t.co/gRah5151oP#CL17442392 pic.twitter.com/1D6CUhYDtb
— Tech Cases Bot (@techcases_bot) May 24, 2024
The Department of Justice’s complaint alleges that Apple abuses its market dominance and power to extract more money from small firms, developers, publishers, artists, consumers, and retailers.
As per the lawsuit
According to the antitrust lawsuit filed by 15 US states, Apple violates contract law by maintaining an illegal monopoly on smartphones by enforcing contractual limitations on and withholding essential access from developers.
The Justice Department has claimed that Apple outperforms its competitors in terms of profit, charging up to $1,599 for an iPhone. US officials have also reported that Apple levies hidden fees on a range of business associates, ranging from credit card providers to software developers. According to reports, competitors like Alphabet’s Google are also subject to these fees, eventually driving up customer costs.
Attorney General Merrick Garland stated in March, “Consumers should not have to pay higher prices because companies violate the antitrust laws. If left unchallenged, Apple will only continue strengthening its smartphone monopoly.”
#ThisWeekatJustice Justice Department Sued Apple for Monopolizing Smartphone Markets; Six Former Mississippi Law Enforcement Officers Sentenced for Torturing and Abusing Two Black Men; Attorney General Merrick B. Garland Statement on FBI Quarterly Uniform Crime Report; and more pic.twitter.com/Az0rqsCWko
— U.S. Department of Justice (@TheJusticeDept) March 22, 2024
What Did Apple Say About It?
Apple has denied the allegations and asked a US judge to dismiss the lawsuit in a letter. According to the firm, iPhones don’t keep consumers “locked in” to the devices.
Apple has asked a U.S. Judge to dismiss the DOJ's Lawsuit that is based on a theory of antitrust liability that no court recognizes https://t.co/2nIm2jvS7r pic.twitter.com/9plr1iCGVT
— Patently Apple (@PatentlyApple) May 21, 2024
Reportedly, in a letter to US District Judge Julien X Neals in New Jersey, the company said that it is “far from being a monopolist” as “Apple faces fierce competition from well-established rivals, and the complaint fails to allege that Apple can charge supra-competitive prices or restrict output in the alleged smartphone markets.”
“Anyone unhappy with Apple’s limitations and restrictions has every incentive to switch to rival platforms that ostensibly do not have those limitations,” the letter added.
Apple also noted that the DOJ relies on a new “theory of antitrust liability that no court has recognised.” The government is expected to respond to Apple’s letter within seven days, which the court requires parties to submit.
In your opinion, has the tech and gadget giant Apple maintained an illegible monopoly in the market? Or is it just the allegations of the rivals?
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