Quick overview

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Apple lost its attempt on Monday to have an antitrust case filed by the US Justice Department and a group of state attorneys general dismissed, a win for the aggressive stance adopted during the Biden administration and continued by enforcers under President Donald Trump.

Apple could lose its very profitable mobile hardware business as a result of the lawsuit, which poses an existential threat.

 

It is alleged that the manufacturer of the iPhone broke antitrust laws by preventing competitors from using the hardware and software features of its well-known devices. Apple has allegedly obstructed innovations that would have facilitated phone switching by using its control over the distribution of apps and the features of the iPhone, according to the government.

According to US District Judge Julien Xavier Neals of New Jersey, in a 33-page ruling at this early stage of the case, “allegations of this nature, which indicate that Apple acts in a manner to protect its monopoly power in the smartphone and performance smartphone market, are sufficient.”.

He added that there is sufficient evidence to support the claims that Apple intends to control the smartphone market. Several alleged remarks made by Apple executives about the obstacles put in place to preserve its monopoly are included in the “complaint.”. In an emailed statement, an Apple representative stated,

“We will continue to vigorously fight this lawsuit in court because we believe it is wrong on the facts and the law.”. The decision sets the stage for years of legal action.

Although Neal’s has not yet scheduled a trial, antitrust cases, including appeals, can take years to conclude.

Alphabet got sued by the DOJ. Google over its search business in October 2020, and four years later, a judge found that the company had broken the law. Although Gail Slater, the Justice Department’s new antitrust chief, stated during her confirmation hearing that she intends to continue the strict enforcement of her precedent, largely, Apple may still attempt to settle the case with the Trump administration, which was filed in March 2024.