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

First Post

time13 hours ago

  • Business
  • First Post

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

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. STORY CONTINUES BELOW THIS AD 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. STORY CONTINUES BELOW THIS AD 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.

US judge allows govt antitrust lawsuit against Apple to move forward
US judge allows govt antitrust lawsuit against Apple to move forward

Business Standard

time17 hours ago

  • Business
  • Business Standard

US judge allows govt antitrust lawsuit against Apple to move forward

The 33-page opinion from US District Judge Xavier Neals in New Jersey will enable an antitrust lawsuit that the US Justice Department filed against Apple 15 months ago to proceed AP New Jersey A federal judge on Monday rebuffed Apple's request to throw out a US government lawsuit alleging the technology trendsetter has built a maze of illegal barriers to protect the iPhone from competition and fatten its profit margins. The 33-page opinion from US District Judge Xavier Neals in New Jersey will enable an antitrust lawsuit that the US Justice Department filed against Apple 15 months ago to proceed. Neals has set a timetable that could see the case come to trial in 2027. Apple has sought to dismiss the lawsuit, arguing the Justice Department had distorted the contours of the smartphone market and made a series of other misinterpretations that warranted the case be thrown out. But Neals decided there is enough evidence to support the Justice Department's market definitions and concluded the case's key allegations merited further examination at trial. The case seeks to pierce the digital fortress that Apple Inc, based in Cupertino, California, has built around the iPhone, iPad and other products to create a so-called walled garden allowing its hardware and software to mesh seamlessly for users. The Justice Department alleges that walled garden has mostly turned into a shield against competition, creating market conditions that enable it to charge higher prices and stifle innovation. The lawsuit sets forth several allegations of technological barricades that constitute anticompetitive conduct, Neals wrote in his opinion. The judge also concluded the Justice Department had pointed toward enough areas of troubling conduct that raised the dangerous possibility that Apple has turned the iPhone into an illegal monopoly. In a Monday statement, Apple reiterated its position that the Justice Department's case is wrong on the facts and the law, and we will continue to vigorously fight it in court". The antitrust lawsuit isn't the only legal headache threatening to undercut its profits, which totalled USD 94 billion on sales of USD 295 billion in its fiscal year ending last September. Another federal judge in April issued a civil contempt order banning Apple from collecting any fees from in-app transactions on the iPhone that are funnelled through other options besides its once-exclusive payment processing system that charged commissions ranging from 15 to 30 per cent. Apple also could lose a more than $20 billion annual payment that it gets for making Google the default search tool on the iPhone and other products as part of another antitrust case brought by the Justice Department. A federal judge in Washington is considering whether to ban the deals with Apple as part of a shake-up being proposed to address Google's illegal monopoly in search. Neals' decision to allow the Justice Department's antitrust case to proceed came on the same day that Apple was hit with a lawsuit by app maker Proton amplifying the accusations of wrongful conduct by the company. The lawsuit, which will seek to be certified as a class action presenting thousands of developers who have made iPhone apps, is asking for punitive damages against Apple, as well as a court order to dismantle its walled garden. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Judge allows antitrust lawsuit against Apple to proceed

time19 hours ago

  • Business

Judge allows antitrust lawsuit against Apple to proceed

A federal judge on Monday rebuffed Apple's request to throw out a U.S. government lawsuit alleging the technology trendsetter has built a maze of illegal barriers to protect the iPhone from competition and fatten its profit margins. The 33—page opinion from U.S. District Judge Xavier Neals in New Jersey will enable an antitrust lawsuit that the U.S. Justice Department filed against Apple 15 months ago to proceed. Neals has set a timetable that could see the case come to trial in 2027. Apple has sought to dismiss the lawsuit, arguing the Justice Department had distorted the contours of the smartphone market and made a series of other misinterpretations that warranted the case be thrown out. But Neals decided there is enough evidence to support the Justice Department's market definitions and concluded the case's key allegations merited further examination at trial. The case seeks to pierce the digital fortress that Apple Inc., based in Cupertino, California, has built around the iPhone, iPad and other products to create a so-called 'walled garden' allowing its hardware and software to mesh seamlessly for users. The Justice Department alleges that walled garden has mostly turned into a shield against competition, creating market conditions that enable it to charge higher prices and stifle innovation. The lawsuit 'sets forth several allegations of technological barricades that constitute anticompetitive conduct,' Neals wrote in his opinion. The judge also concluded the Justice Department had pointed toward enough areas of troubling conduct that raised the 'dangerous possibility' that Apple has turned the iPhone into an illegal monopoly. In a Monday statement, Apple reiterated its position that the Justice Department's case 'is wrong on the facts and the law, and we will continue to vigorously fight it in court.' The antitrust lawsuit isn't the only legal headache threatening to undercut its profits, which totaled $94 billion on sales of $295 billion in its fiscal year ending last September. Another federal judge in April issued a civil contempt order banning Apple from collecting any fees from in-app transactions on the iPhone that are funneled through other options besides its once-exclusive payment processing system that charged commissions ranging from 15% to 30%. Apple also could lose a more than $20 billion annual payment that it gets for making Google the default search tool on the iPhone and other products as part of another antitrust case brought by the Justice Department. A federal judge in Washington D.C. is considering whether to ban the deals with Apple as part of a shake-up being proposed to address Google's illegal monopoly in searc h. Neals' decision to allow the Justice Department's antitrust case to proceed came on the same day that Apple was hit with a lawsuit by app maker Proton amplifying the accusations of wrongful conduct by the company. The lawsuit, which will seek to be certified as a class action presenting thousands of developers who have made iPhone apps, is asking for punitive damages against Apple, as well as a court order to dismantle its walled garden. .

US judge allows antitrust lawsuit against Apple to proceed
US judge allows antitrust lawsuit against Apple to proceed

News18

time20 hours ago

  • Business
  • News18

US judge allows antitrust lawsuit against Apple to proceed

Agency: PTI New Jersey, Jun 30 (AP) A federal judge on Monday rebuffed Apple's request to throw out a US government lawsuit alleging the technology trendsetter has built a maze of illegal barriers to protect the iPhone from competition and fatten its profit margins. The 33-page opinion from US District Judge Xavier Neals in New Jersey will enable an antitrust lawsuit that the US Justice Department filed against Apple 15 months ago to proceed. Neals has set a timetable that could see the case come to trial in 2027. Apple has sought to dismiss the lawsuit, arguing the Justice Department had distorted the contours of the smartphone market and made a series of other misinterpretations that warranted the case be thrown out. But Neals decided there is enough evidence to support the Justice Department's market definitions and concluded the case's key allegations merited further examination at trial. The case seeks to pierce the digital fortress that Apple Inc, based in Cupertino, California, has built around the iPhone, iPad and other products to create a so-called 'walled garden" allowing its hardware and software to mesh seamlessly for users. The Justice Department alleges that walled garden has mostly turned into a shield against competition, creating market conditions that enable it to charge higher prices and stifle innovation. The lawsuit 'sets forth several allegations of technological barricades that constitute anticompetitive conduct," Neals wrote in his opinion. The judge also concluded the Justice Department had pointed toward enough areas of troubling conduct that raised the 'dangerous possibility" that Apple has turned the iPhone into an illegal monopoly. In a Monday statement, Apple reiterated its position that the Justice Department's case 'is wrong on the facts and the law, and we will continue to vigorously fight it in court". The antitrust lawsuit isn't the only legal headache threatening to undercut its profits, which totalled USD 94 billion on sales of USD 295 billion in its fiscal year ending last September. Another federal judge in April issued a civil contempt order banning Apple from collecting any fees from in-app transactions on the iPhone that are funnelled through other options besides its once-exclusive payment processing system that charged commissions ranging from 15 to 30 per cent. Apple also could lose a more than $20 billion annual payment that it gets for making Google the default search tool on the iPhone and other products as part of another antitrust case brought by the Justice Department. A federal judge in Washington is considering whether to ban the deals with Apple as part of a shake-up being proposed to address Google's illegal monopoly in search. Neals' decision to allow the Justice Department's antitrust case to proceed came on the same day that Apple was hit with a lawsuit by app maker Proton amplifying the accusations of wrongful conduct by the company. The lawsuit, which will seek to be certified as a class action presenting thousands of developers who have made iPhone apps, is asking for punitive damages against Apple, as well as a court order to dismantle its walled garden. (AP) ARI First Published:

US judge allows antitrust lawsuit against Apple to proceed
US judge allows antitrust lawsuit against Apple to proceed

Mint

time21 hours ago

  • Business
  • Mint

US judge allows antitrust lawsuit against Apple to proceed

New Jersey, Jun 30 (AP) A federal judge on Monday rebuffed Apple's request to throw out a US government lawsuit alleging the technology trendsetter has built a maze of illegal barriers to protect the iPhone from competition and fatten its profit margins. The 33-page opinion from US District Judge Xavier Neals in New Jersey will enable an antitrust lawsuit that the US Justice Department filed against Apple 15 months ago to proceed. Neals has set a timetable that could see the case come to trial in 2027. Apple has sought to dismiss the lawsuit, arguing the Justice Department had distorted the contours of the smartphone market and made a series of other misinterpretations that warranted the case be thrown out. But Neals decided there is enough evidence to support the Justice Department's market definitions and concluded the case's key allegations merited further examination at trial. The case seeks to pierce the digital fortress that Apple Inc, based in Cupertino, California, has built around the iPhone, iPad and other products to create a so-called 'walled garden' allowing its hardware and software to mesh seamlessly for users. The Justice Department alleges that walled garden has mostly turned into a shield against competition, creating market conditions that enable it to charge higher prices and stifle innovation. The lawsuit 'sets forth several allegations of technological barricades that constitute anticompetitive conduct,' Neals wrote in his opinion. The judge also concluded the Justice Department had pointed toward enough areas of troubling conduct that raised the 'dangerous possibility' that Apple has turned the iPhone into an illegal monopoly. In a Monday statement, Apple reiterated its position that the Justice Department's case 'is wrong on the facts and the law, and we will continue to vigorously fight it in court". The antitrust lawsuit isn't the only legal headache threatening to undercut its profits, which totalled USD 94 billion on sales of USD 295 billion in its fiscal year ending last September. Another federal judge in April issued a civil contempt order banning Apple from collecting any fees from in-app transactions on the iPhone that are funnelled through other options besides its once-exclusive payment processing system that charged commissions ranging from 15 to 30 per cent. Apple also could lose a more than $20 billion annual payment that it gets for making Google the default search tool on the iPhone and other products as part of another antitrust case brought by the Justice Department. A federal judge in Washington is considering whether to ban the deals with Apple as part of a shake-up being proposed to address Google's illegal monopoly in search. Neals' decision to allow the Justice Department's antitrust case to proceed came on the same day that Apple was hit with a lawsuit by app maker Proton amplifying the accusations of wrongful conduct by the company. The lawsuit, which will seek to be certified as a class action presenting thousands of developers who have made iPhone apps, is asking for punitive damages against Apple, as well as a court order to dismantle its walled garden. (AP) ARI

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