Apple to Face US Department of Justice Lawsuit Over Smartphone Monopoly Allegations
Jul 2, 2025

Apple to Face US Department of Justice Lawsuit Over Smartphone Monopoly Allegations

AI-summarised brief · reviewed before publication

A US federal judge has ruled that Apple must face a lawsuit filed by the US Department of Justice (DOJ) accusing the company of unlawfully dominating the US smartphone market. In the ruling, US District Judge Julien Neals in Newark, New Jersey, denied Apple's motion to dismiss the lawsuit, which alleges that the company uses restrictions on third-party app and device developers to keep users from switching to competitors and unlawfully dominate the market. The lawsuit, filed in March 2024, focuses on Apple's restrictions and fees on app developers, as well as technical roadblocks to third-party devices and services such as smartwatches, digital wallets, and messaging services that would compete with its own. Apple has argued that its limitations on third-party developers' access to its technology are reasonable, and that forcing it to share technology with competitors would chill innovation. However, the DOJ, along with several states and Washington, DC, claims that these practices destroy competition and that Apple should be blocked from continuing them. The decision allows the case to move forward, which could lead to a years-long fight for Apple against the DOJ's attempt to lower what are seen as barriers to competition with the iPhone. In response to the ruling, an Apple spokesperson stated that the company believes the lawsuit is wrong on the facts and the law, and will continue to vigorously fight it in court. A spokesperson for the DOJ declined to comment. It's worth noting that the iPhone is the world's most popular smartphone, with sales totaling $201 billion (roughly Rs. 17,19,518 crore) in 2024. Apple recently introduced a new budget model iPhone in February with enhanced features priced at $170 more than its predecessor. This case is one of a series of US antitrust cases against Big Tech companies brought during the Biden and first Trump administrations. Other companies, such as Facebook parent Meta Platforms and Amazon.com, are also facing lawsuits by antitrust enforcers alleging they illegally maintain monopolies, while Alphabet's Google is facing two such lawsuits.