Apple must face DOJ monopoly lawsuit, judge rules

Time of India

6 hours ago

A federal judge rejected
's bid to dismiss the Justice Department's antitrust lawsuit on Monday, dealing a significant blow to the
maker's legal strategy.
U.S. District Judge Julien Neals
ruled that government allegations are "sufficient to demonstrate Apple's specific intent to monopolize the smartphone and performance smartphone market."
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The decision clears the path for a potentially years-long legal battle that could reshape how Apple operates its ecosystem of devices and services.
DOJ Claims Apple built "walled garden" to stifle competition
The March 2024 lawsuit targets Apple's restrictions on third-party app developers and technical barriers for competing devices like smartwatches and digital wallets. Government prosecutors argue these practices destroy competition while inflating prices for consumers and developers.
Apple's iPhone sales generated $201 billion in revenue last year, cementing its position as the world's most popular smartphone.
The tech giant had argued its limitations on developer access were reasonable business practices, claiming forced technology sharing would harm innovation. Apple spokesperson Marni Goldberg maintained the company believes "this lawsuit is wrong on the facts and the law."
Apple's case joins growing big tech antitrust crackdown
Judge Neals identified "several allegations of technological barricades that constitute anticompetitive conduct" and noted the "dangerous possibility" that Apple has transformed the iPhone into an illegal monopoly.
The case could reach trial by 2027 under the current timeline.
This lawsuit represents part of a broader government offensive against Big Tech monopolies. Meta, Amazon, and Google parent Alphabet all face similar antitrust challenges from federal enforcers.
Apple confronts additional legal pressures beyond the monopoly case. The company could lose its $20 billion annual payment from Google for default search placement, while a separate federal order already restricts its App Store fee collection practices.
The outcome could fundamentally alter Apple's business model and its tightly controlled "walled garden" approach to hardware and software integration.