Apple Fights DOJ Antitrust Case, Defends Ecosystem as Essential for Innovation

Apple Challenges DOJ Antitrust Case, Citing Innovation Defense

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Nov 20, 2024
Summary
  • Apple seeks dismissal of DOJ antitrust lawsuit, arguing its policies promote innovation, not anti-competitive practices.
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Apple (AAPL, Financial) will seek a federal judge on Wednesday to throw out a U.S. Department of Justice antitrust case claiming the firm illegally controls the smartphone market, thus limiting competition and interoperability with outside apps and devices.

U.S. District Judge Julien Neals will hear arguments at Newark, New Jersey. Apple argues that its policies are reasonable and need to promote innovation; prosecutors contend Apple locks consumers into its ecosystem and inhibits rivals. Filed in March by the Department of Justice and a group of states, the lawsuit questions Apple's policies on app developers, fees, and limits on rival third-party products and services including smartwatches and digital wallets.

Apple has cited earlier decisions in same circumstances, including the dismissal of the Federal Trade Commission's charges against Meta Platforms (META) and elements of the antitrust case against Google, contending that denial of access to technology shouldn't be judged anticompetitive.

The case shows a more general bipartisan interest in Big Tech antitrust enforcement. Other examples include Google's search monopoly, Meta's acquisitions of rivals, and Amazon's (AMZN) seller restrictions. Apple's demand for dismissal marks the most recent challenge in the continuous investigation of computer behemoths.

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