Apple Inc. has failed in its effort to dismiss a sweeping antitrust lawsuit brought by the U.S. Justice Department and a coalition of state attorneys general, marking a major early win for federal enforcers under both the Biden and Trump administrations.
The lawsuit, which accuses Apple of leveraging its dominance in mobile hardware to stifle competition, will now move forward following a Monday ruling by U.S. District Judge Julien Xavier Neals in New Jersey.
In a 33-page decision, Judge Neals wrote that the “allegations of this nature, which indicate that Apple acts in a manner to protect its monopoly power in the smartphone and performance smartphone market, are sufficient.” He also found that the complaint “includes numerous statements allegedly made by Apple executives regarding the barriers set in place to maintain its monopoly,” supporting the government’s claim that Apple intended to monopolize the smartphone market.
The Justice Department alleges Apple has blocked rival apps and services from accessing key iPhone features in ways that prevent innovation and make it more difficult for users to switch devices. The lawsuit targets Apple’s control over app distribution, messaging platforms, digital wallets, and compatibility with non-Apple smartwatches and cloud gaming.
An Apple spokesperson responded in an emailed statement, “We believe this lawsuit is wrong on the facts and the law, and we will continue to vigorously fight it in court.”
The DOJ declined to comment.
While no trial date has been set, the ruling paves the way for what could be years of litigation. Antitrust lawsuits, like the DOJ’s ongoing case against Google over its search business, typically extend over multiple years and appeals.
Apple had previously argued in a November hearing that the DOJ failed to prove any harm to consumers or developers and emphasized that the company has the legal right to choose its business partners. The company’s legal team contended Apple had no obligation to assist competitors.
However, Neals ruled that those arguments involve factual disputes that must be explored through discovery: “To the extent Apple argues it can limit access to its ‘own proprietary technology available to third parties,’ the court finds this contention is a factual dispute that must be resolved through discovery.”
The DOJ has emphasized that the case is not simply about Apple’s business decisions, but about how it uses its dominance to unfairly block rivals. A DOJ attorney said during the hearing that Apple’s actions amounted to building an unlawful “moat” around its iPhone ecosystem.
Filed in March 2024, the case remains a key priority for the Justice Department. Antitrust chief Gail Slater, recently appointed under President Trump, has signaled she intends to maintain the strong enforcement policies of her predecessors.
The case is USA v. Apple Inc., 24-cv-04055, in the U.S. District Court for the District of New Jersey.
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