Apple Denied Dismissal Motion in U.S. v. Apple

The U.S. Department of Justice can continue to pursue its historic antitrust case against Apple for its abuses in the smartphone market.

“Apple’s motion to dismiss is DENIED,” U.S. District Judge Julien Neals writes in his ruling against Apple.

Judge Neals examined every aspect of the DOJ case against Apple and agreed that the agency’s charges were warranted across the board. More specifically, he found that:

• DOJ claims that Apple maintains a “dominant share” in smartphones and performance smartphones are accurate: Apple controls 65 percent of the U.S. smartphone market and over 70 percent of the performance smartphone market.
• Apple willfully acquired and maintained its market power via some anticompetitive practices, which is illegal.
• Apple engaged in predatory or anticompetitive conduct with the specific intent to monopolize, and the judge cited multiple statements made by the company’s executives to support this notion.
• Apple’s attempt to get this case thrown out because of conflicting federal and state laws are “misplaced” because Apple engages in, and its activities substantially affect, interstate trade and commerce and it offers a range of products and services that are marketed, distributed, and offered to consumers “throughout the United States, in the plaintiff States, across state lines, and internationally.”

The DOJ and 16 U.S. states charged Apple with a sweeping set of antitrust violations in March 2024, arguing that the consumer electronics giant had abused its dominant position in the smartphone market by “extracting higher fees, thwarting innovation, offering a less secure or degraded user experience, and throttling competitive alternatives.” The charges were backed by a mountain of evidence, but Apple filed a motion to dismiss the suit in August 2024. It is that motion that a U.S. district court struck down today.

As always, Apple pushed back when confronted by reality.

“We believe this lawsuit is wrong on the facts and the law, and we will continue to vigorously fight it in court,” an Apple statement notes.