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APPLE SAYS US ANTITRUST LAWSUIT SHOULD BE DISMISSED

By David Shepardson
May 21, 20249:01 AM HSTUpdated 6 days ago
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A women uses an iPhone mobile device as she passes a lighted Apple logo at the
Apple store at Grand Central Terminal in New York City, U.S., April 14, 2023.
REUTERS/Mike Segar/File Photo Purchase Licensing RightsNew Tab, opens new tab
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WASHINGTON, May 21 (Reuters) - Apple (AAPL.O)New Tab, opens new tab said on
Tuesday it plans to ask a U.S. judge to dismiss a lawsuit filed by the Justice
Department and 15 states in March that alleged the iPhone maker monopolized the
smartphone market, hurt smaller rivals and drove up prices.
In a letter to U.S. District Judge Julien X. Neals in New Jersey, Apple said
"far from being a monopolist, 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
Advertisement · Scroll to continue

smartphone markets."
In the letter to the judge, Apple said the DOJ relies on a new "theory of
antitrust liability that no court has recognized."
The government is expected to respond within seven days to the Apple letter,
which the court requires parties to submit, hoping to expedite cases before
advancing to a potentially more robust and expensive effort to dismiss a
lawsuit.
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. The civil lawsuit accuses Apple of an illegal monopoly
on smartphones maintained by imposing contractual restrictions on, and
withholding critical access from, developers.
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The Justice Department, which did not immediately comment, has previously said
Apple charges as much as $1,599 for an iPhone and makes a larger profit than any
rival. Officials also said Apple imposes hidden charges on various business
partners - from software developers to credit card companies and even rivals
such as Alphabet's (GOOGL.O)New Tab, opens new tab Google, in ways that
ultimately raise prices for consumers.

Apple rejected the government's contentions that the iPhone has kept consumers
"locked in" to the devices. "Someone unhappy with Apple’s limitations has every
incentive to switch to
competitor platforms that ostensibly do not have those limitations," the letter
said.
"Consumers should not have to pay higher prices because companies violate the
antitrust laws," Attorney General Merrick Garland said in March. "If left
unchallenged, Apple will only continue to strengthen its smartphone monopoly."


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Reporting by David Shepardson in Washington Editing by Matthew Lewis and David
Gregorio

Our Standards: The Thomson Reuters Trust Principles.New Tab, opens new tab

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