Apple seeks dismissal of antitrust lawsuit

The regulators allege that Apple hampers competition by imposing contractual restrictions and withholding critical access from developers.

Apple is nearing its first US retail employee union agreement.

Apple has requested a US judge to dismiss an antitrust lawsuit filed by federal and state regulators, accusing the tech giant of monopolising the smartphone market. The Justice Department, along with 19 states and Washington, D.C., allege that Apple maintains an illegal monopoly by imposing contractual restrictions and withholding critical access from developers.

In its defence, Apple argues that the limitations placed on third-party developers are reasonable and do not constitute anti-competitive behaviour. The company contends that being forced to share its technology with competitors would stifle innovation. Apple further asserts that courts should not be involved in overseeing product design and policy choices in rapidly changing technical markets.

Why does this matter?

The lawsuit challenges Apple’s restrictions and fees on app developers. It claims the company hinders interoperability between iPhones and third-party apps and devices, effectively locking users into Apple’s ecosystem and harming competition. However, Apple counters that no evidence proves its practices harm competition or consumers, who can switch to competitors if dissatisfied with iPhone features.

US District Judge Julien Neals will consider responses from both the government and Apple before deciding on the motion later this year. The legal case is among five major antitrust lawsuits against major tech companies, including Meta, Amazon, and Google.