A federal judge has ruled that Apple must face the U.S. Department of Justice’s antitrust lawsuit, marking a significant step in the government’s effort to challenge the iPhone maker’s market dominance. U.S. District Judge Julien Neals denied Apple’s motion to dismiss the case, allowing it to proceed to discovery and potentially trial.
Apple had argued the DOJ failed to prove it engaged in anticompetitive behavior or harmed consumers. The company also claimed it does not hold a monopoly in the U.S. smartphone market, pointing to competition from Android manufacturers like Samsung and Google. Judge Neals rejected that argument, stating the DOJ presented sufficient allegations to move the case forward.
DOJ Accuses Apple of Blocking Competition
The Department of Justice, joined by several U.S. states and the District of Columbia, filed the lawsuit in March 2024. The complaint alleges Apple uses technical restrictions, high developer fees, and limited interoperability to keep users locked into its ecosystem and suppress competition. The DOJ contends these practices prevent rival services and devices such as third-party smartwatches, messaging platforms, and digital wallets from competing fairly.
According to the DOJ, Apple’s restrictions distort the market and ultimately hurt consumers by reducing choices and increasing costs. The lawsuit seeks to halt these practices and restore competitive conditions in the smartphone market.
Apple’s Defense: Innovation, Not Monopoly
Apple maintains that its control over the iOS ecosystem ensures user security and supports innovation. It argues that requiring the company to grant competitors access to its technology would compromise quality and diminish incentives to invest in product development.
In court filings, Apple claimed that it operates in a competitive market and does not prevent users from switching platforms. The company cited the presence of strong rivals like Samsung and Google as evidence it lacks monopoly power.
Now that the motion to dismiss has been denied, Apple will be required to respond to the DOJ’s complaint. Both parties will enter the discovery phase, exchanging documents, expert analysis, and witness testimony. A trial is not expected before 2028.
Reuters reported that the decision reflects a growing trend in antitrust enforcement against Big Tech. Meta, Amazon, and Google are also facing legal action over alleged monopoly abuses. Together, these cases represent a coordinated attempt by U.S. regulators to curb the power of dominant tech platforms.
Apple’s U.S. smartphone sales totaled $201 billion in 2024. In February, it released a new budget iPhone priced $170 higher than its previous model, underscoring the company’s continued influence in the market.