📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Apple says US antitrust lawsuit should be dismissed

Published 05/21/2024, 01:57 PM
Updated 05/21/2024, 03:05 PM
© Reuters. FILE PHOTO: A women uses an iPhone mobile device as she passes a lighted Apple logo at the Apple store at Grand Central Terminal in New York City, U.S., April 14, 2023. REUTERS/Mike Segar/File Photo
AAPL
-

By David Shepardson

WASHINGTON (Reuters) -Apple said on Tuesday it plans to ask a U.S. judge to dismiss a lawsuit filed by the Justice Department and 15 states in March that alleged the iPhone maker monopolized the smartphone market, hurt smaller rivals and drove up prices.

In a letter to U.S. District Judge Julien X. Neals in New Jersey, Apple (NASDAQ:AAPL) 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."

In the letter to the judge, Apple said the DOJ relies on a new "theory of antitrust liability that no court has recognized."

The government is expected to respond within seven days to the Apple letter, which the court requires parties to submit, hoping to expedite cases before advancing to a potentially more robust and expensive effort to dismiss a lawsuit.

The Justice Department alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants. The civil lawsuit accuses Apple of an illegal monopoly on smartphones maintained by imposing contractual restrictions on, and withholding critical access from, developers.

The Justice Department, which did not immediately comment, has previously said Apple charges as much as $1,599 for an iPhone and makes a larger profit than any rival. Officials also said Apple imposes hidden charges on various business partners - from software developers to credit card companies and even rivals such as Alphabet (NASDAQ:GOOGL)'s Google, in ways that ultimately raise prices for consumers.

Apple rejected the government's contentions that the iPhone has kept consumers "locked in" to the devices. "Someone unhappy with Apple’s limitations has every incentive to switch to

© Reuters. FILE PHOTO: A women uses an iPhone mobile device as she passes a lighted Apple logo at the Apple store at Grand Central Terminal in New York City, U.S., April 14, 2023. REUTERS/Mike Segar/File Photo

competitor platforms that ostensibly do not have those limitations," the letter said.

"Consumers should not have to pay higher prices because companies violate the antitrust laws," Attorney General Merrick Garland said in March. "If left unchallenged, Apple will only continue to strengthen its smartphone monopoly."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.