Citing iPhone's 'illegal' monopoly, US judge allows antitrust lawsuit against Apple to proceed

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A US federal judge has refused to dismiss a major antitrust lawsuit against Apple, allowing the US government's case accusing the tech giant of stifling competition to protect the iPhone and increase profits to move ahead. read more
Another cornerstone of Apple's strategy in India has been its investment in local manufacturing. Image Credit: Apple
A federal judge on Monday rejected Apple's attempt to dismiss a major antitrust lawsuit filed by the US government, accusing the tech giant of blocking competition to protect the iPhone and boost its profits.
The 33-page ruling by US District Judge Xavier Neals in New Jersey means the Justice Department's case, filed 15 months ago, will move forward. Neals has set a timeline that could bring the case to trial in 2027.
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Apple had argued that the Justice Department misunderstood the smartphone market and misrepresented facts, and therefore the lawsuit should be thrown out. But the judge disagreed, saying there's enough evidence to support the government's claims and that the key accusations deserve to be examined at trial.
The lawsuit targets Apple's so-called 'walled garden'—a tightly controlled system where Apple's hardware and software work together seamlessly. While this system offers convenience, the Justice Department argues it has become a way to block competition, allowing Apple to charge higher prices and limit innovation.
Judge Neals wrote that the lawsuit describes several 'technological barricades' that could be considered anticompetitive behaviour. He also said the claims raise a 'dangerous possibility' that Apple has turned the iPhone into an illegal monopoly.
Apple responded by standing by its position, saying in a statement, 'The Justice Department's case is wrong on the facts and the law, and we will continue to vigorously fight it in court.'
This isn't the only legal issue facing Apple. In April, another federal judge banned the company from collecting fees on in-app purchases made through other payment systems outside Apple's own, which used to charge commissions of 15–30 per cent.
Apple also risks losing a $20 billion-per-year deal with Google, which pays to be the default search engine on iPhones. That deal is being challenged in another antitrust case against Google, and a judge in Washington is deciding whether it should be banned.
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On the same day as Neals' ruling, Apple was hit with another lawsuit—this time by app maker Proton, which accuses Apple of unfair practices. Proton is seeking to make it a class action case representing thousands of app developers and is asking for damages and a court order to break Apple's control over its ecosystem.