A US federal judge has rejected Apple’s attempt to dismiss a major antitrust lawsuit, allowing the case to move forward. The ruling, issued Monday by District Judge Xavier Neals in New Jersey, marks a significant step in the Justice Department’s ongoing challenge to Apple’s business practices.
The lawsuit, filed 15 months ago, accuses Apple of building an illegal monopoly around the iPhone by erecting barriers that prevent competition and inflate profits. Neals’ 33-page opinion found the case strong enough to proceed to trial, which could begin as early as 2027.
Apple had argued the case was flawed, claiming the government misunderstood the smartphone market and distorted legal standards. But Judge Neals ruled there was sufficient evidence for the Justice Department’s claims to be tested in court.
At the heart of the lawsuit is Apple’s so-called ‘walled garden’ — a tightly controlled ecosystem of hardware and software. While Apple says this approach enhances user experience, the government claims it stifles innovation and raises prices.
The court agreed the case contained ‘several allegations of technological barricades that constitute anticompetitive conduct.’ Neals also warned of the ‘dangerous possibility’ that Apple’s control over the iPhone has crossed into illegal monopoly territory.
In response, Apple maintained its position, stating: ‘The DOJ’s case is wrong on the facts and the law.’
The company pledged to continue defending itself in court against the accusations.
The lawsuit is one of several legal threats confronting Apple, whose 2023 profits totalled $94 billion on $295 billion in revenue. In April, another judge barred Apple from charging fees on in-app purchases processed through alternative payment methods.
That ruling could cost the company billions in commission revenue, previously collected at rates of 15% to 30%. Additionally, a separate antitrust case may impact Apple’s agreement with Google, which is worth over $20 billion per year.
Under that deal, Google is the default search engine on Apple devices — a setup under scrutiny for its alleged anticompetitive effects. A Washington, DC judge is now considering whether to outlaw the arrangement as part of a broader case against Google.
On the same day as Neals’ ruling, Apple was also hit with a new lawsuit by app developer Proton.
The case seeks class-action status and accuses Apple of monopolistic behaviour that harms smaller developers and app creators.
Proton’s suit demands punitive damages and a court order to dismantle the walled garden approach central to Apple’s ecosystem. Combined with the DOJ case, the new lawsuit deepens Apple’s mounting legal pressures over its dominance in the digital economy.
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