Apple rejects US antitrust lawsuit on alleged smartphone market monopoly
- In Reports
- 12:56 PM, May 22, 2024
- Myind Staff
Apple is gearing up to contest an antitrust lawsuit filed by the US Justice Department and 15 states. The lawsuit accuses the tech giant of monopolising the smartphone market, stifling competition, and raising prices.
In a letter addressed to US District Judge Julien X. Neals in New Jersey, Apple expressed its intention to request the dismissal of the case. The tech company argues that the allegations are unfounded and that the lawsuit is based on an unprecedented theory of antitrust liability.
Apple maintains that it faces robust competition from other well-established smartphone manufacturers, thus refuting allegations of holding a monopolistic position. In its response to the complaint, Apple stated that there is insufficient evidence to demonstrate its ability to enforce prices above competitive levels or restrict market output.
According to Apple's communication with the court, the company refutes the notion of being a monopolist, citing robust competition from established rivals.
The lawsuit, filed by the Justice Department in March, alleges that Apple exploits its market dominance to extract additional funds from consumers and various business partners, including developers, content creators, and small businesses.
The complaint contends that Apple maintains its alleged monopoly through the enforcement of restrictive contracts and withholding essential access to developers.
Additionally, the government's case highlights Apple's pricing strategies, asserting that the company charges up to $1,599 for an iPhone and achieves higher profits than any of its competitors.
Furthermore, it contends that Apple's practices lead to concealed charges affecting various business partners, including software developers and credit card companies, ultimately resulting in elevated consumer prices.
In its rebuttal, Apple denied allegations of locking consumers into its ecosystem. The company highlighted that dissatisfied customers have ample incentive to switch to alternative platforms free from similar constraints.
Apple underscored its provision of competitive prices and innovation in response to a dynamic market.
Attorney General Merrick Garland has previously commented on the broader implications of the case, asserting, "Consumers should not be subjected to higher prices due to companies violating antitrust laws. If left unchallenged, Apple will only further fortify its smartphone monopoly."
Image source: Reuters
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