Apple says US antitrust lawsuit should be dismissed

Apple (AAPL.O) announced on Tuesday its intention to ask a U.S. judge to dismiss a lawsuit from the Justice Department and 15 states, which accused the tech giant of monopolizing the smartphone market, disadvantaging smaller competitors, and increasing prices.

In a letter to U.S. District Judge Julien X. Neals in New Jersey, Apple contended that it faces strong competition from well-established rivals and that the lawsuit does not demonstrate Apple’s ability to impose unfairly high prices or limit market output.

Apple’s letter criticized the DOJ’s reliance on an unprecedented antitrust theory. The government is expected to respond within seven days, a requirement aimed at expediting the case before potentially moving to a more detailed and costly dismissal process.

The Justice Department’s lawsuit claims Apple leverages its market power to extract more money from consumers, developers, and various business partners, accusing Apple of maintaining an illegal smartphone monopoly by enforcing contractual restrictions and limiting developer access.

While the DOJ has not yet commented on Apple’s request, it previously argued that Apple charges up to $1,599 for an iPhone and profits more than any competitor. The DOJ also accused Apple of imposing hidden fees on partners, which raises costs for consumers.

Apple denied the allegations, arguing that consumers are not “locked in” to using iPhones, as dissatisfied customers can switch to competing platforms without such limitations.

Attorney General Merrick Garland stated in March that “consumers should not have to pay higher prices because companies violate antitrust laws,” warning that without intervention, Apple’s alleged monopoly would only grow stronger.