US Judge Permits Antitrust Lawsuit Against Apple to Move Forward Amid Competition Concerns

A federal judge has allowed a US government lawsuit against Apple to move forward, rejecting the company's attempt to dismiss it. The lawsuit, filed by the US Justice Department 15 months ago, accuses Apple of creating illegal barriers to protect its iPhone from competition. Judge Xavier Neals in New Jersey issued a 33-page opinion supporting the case's continuation, with a trial potentially set for 2027.

Apple argued that the Justice Department misrepresented the smartphone market and made errors justifying dismissal. However, Judge Neals found sufficient evidence supporting the department's market definitions and allegations. The lawsuit targets Apple's "walled garden" approach, which integrates its hardware and software but allegedly stifles competition and innovation.

Antitrust Allegations Against Apple

The Justice Department claims Apple's practices have led to higher prices and reduced innovation. The lawsuit outlines several technological barriers that may constitute anticompetitive behaviour. Judge Neals noted these concerns could indicate Apple has created an illegal monopoly with its iPhone.

Apple maintains that the Justice Department's case is flawed both factually and legally. In a statement released on Monday, Apple expressed its intention to vigorously defend itself in court. This antitrust lawsuit is one of several legal challenges facing Apple, which reported USD 94 billion in profits on USD 295 billion in sales last fiscal year.

Additional Legal Challenges

In April, another federal judge issued a civil contempt order against Apple. This order prevents Apple from collecting fees on in-app transactions processed through alternative payment systems. Previously, Apple charged commissions between 15% and 30% for such transactions.

Apple also risks losing over $20 billion annually from Google for making it the default search engine on its devices. This is part of another antitrust case by the Justice Department addressing Google's alleged monopoly in search. A federal judge in Washington is considering banning these deals as part of proposed changes.

Proton's Lawsuit Against Apple

On the same day as Judge Neals' decision, app maker Proton filed a lawsuit against Apple. This lawsuit amplifies accusations of wrongful conduct by the company. Proton seeks class-action status representing thousands of iPhone app developers and demands punitive damages and dismantling of Apple's walled garden.

The ongoing legal battles could significantly impact Apple's business operations and financial agreements. As these cases progress, they may reshape how Apple interacts with competitors and developers in the tech industry.

With inputs from PTI