Arguments Presented by Apple to Dismiss Anti-Trust Lawsuit Filed by 15 US States

Apple has requested a US judge to dismiss a lawsuit that was filed against the Cupertino-based tech giant by the Justice Department and 15 states in March. This lawsuit alleges that the iPhone maker monopolised the smartphone market which hurt smaller rivals and drove up prices.

The lawsuit filed by the Justice Department alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants. As per the lawsuit, Apple maintains an illegal monopoly on smartphones by imposing contractual restrictions on and withholding critical access from developers.

Previously, the Justice Department said that Apple charges as much as $1,599 for an iPhone and makes a larger profit than any rival. US officials also noted that Apple imposes hidden charges on various business partners – starting from software developers to credit card companies. These charges are also reportedly charged even rivals such as Alphabet’s Google, which ultimately raise prices for consumers.

In March, Attorney General Merrick Garland said: “Consumers should not have to pay higher prices because companies violate the antitrust laws. If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”

Apple has rejected the allegations and has sent a letter to a US Judge to dismiss the lawsuit. The company said that iPhones don’t keep consumers “locked in” to the devices. In a letter to US District Judge Julien X. Neals in New Jersey, the company said that it is, “far from being a monopolist,” as “Apple faces fierce competition from well-established rivals, and the complaint fails to allege that Apple has the ability to charge supra-competitive prices or restrict output in the alleged smartphone markets.”

Apple also noted that the DOJ relies on a new “theory of antitrust liability that no court has recognised.” The government is expected to respond to Apple’s letter within seven days, which the court requires parties to submit.