Apple dismisses US antitrust lawsuit over alleged smartphone market monopoly

Apple is preparing to challenge an antitrust lawsuit filed by the US Justice Department and 15 states, accusing the tech giant of monopolising the smartphone market, stifling competition, and driving up prices.

In aletter to US District Judge Julien X. Neals in New Jersey, Apple announced its intent to seek dismissal of the case, arguing that the allegations are unfounded, and the lawsuit relies on an unprecedented theory of antitrust liability.

Apple asserts that it faces strong competition from other established smartphone manufacturers, thereby disputing claims that it holds a monopolistic position.

The company said that the complaint fails to demonstrate that Apple has the power to enforce supra-competitive prices or limit market output.

"Far from being a monopolist, Apple faces fierce competition from well-established rivals," the company mentioned in its correspondence with the court.

The Justice Department's lawsuit, filed in March, accuses Apple of leveraging its market power to extract more money from consumers and various business partners, including developers, content creators, and small businesses.

The lawsuit claims Apple maintains its alleged monopoly by enforcing restrictive contracts and denying essential access to developers.

The government's case also highlights Apple's pricing strategies, claiming that the company charges up to $1,599 for an iPhone and makes higher profits than any of its competitors.

Additionally, it argues that Apple's practices result in hidden charges that affect a wide range of business partners, including software developers and credit card companies, ultimately leading to higher consumer prices.

In its defence, Apple refuted that it locks consumers into its ecosystem.

The company pointed out that dissatisfied customers have ample motivation to switch to alternative platforms that do not impose similar limitations.

Apple emphasised that it offers competitive prices and innovation in response to a dynamic market.

Attorney General Merrick Garland has previously remarked on the broader implications of the case, stating, "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."

The Justice Department is expected to respond to Apple's letter within the next week.

(With inputs from Reuters)