Apple Says US Smartphones Suit Has ‘No Relation to Reality’

(Bloomberg) — Apple Inc. said the US government’s antitrust lawsuit accusing the tech giant of monopolizing the smartphone market “bears no relation to reality” and should be tossed out by a federal judge.

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In a court filing, Apple denied allegations that it is a monopolist and said it is not required to give software developers more access to iPhones than they currently have. The company has set the terms for access to its own platform and technologies, Apple argued in its filing, but hasn’t interfered or restricted third parties from dealing with its smartphone rivals. Those actions can’t be challenged under US antitrust law, the company said.

“Apple faces robust competition from other smartphone manufacturers around the world, including Google and Samsung,” company lawyers argued Thursday in federal court in Newark, New Jersey.

The suit against the world’s most-valuable company came as the Biden administration made competition a cornerstone of its economic policy, with a primary focus on Silicon Valley. Apple, Alphabet Inc.’s Google and Meta Platforms Inc. also face possible hefty fines as the European Union investigates their compliance with strict new laws reining in the power of Big Tech.

In its motion to dismiss the US case, Apple argued the complaint fails to demonstrate that the company’s conduct has harmed consumers — a key component of antitrust cases.

“It is implausible to claim, as the government does, that Apple has deterred any customers from switching to Google or Samsung because of its policies with respect to ‘super apps,’ cloud gaming, smartwatches, or anything else,” according to the filing.

In March, the US Justice Department and a group of state attorneys general sued Apple for allegedly blocking rivals from accessing hardware and software features on its popular devices. The suit alleges Apple used its power over app distribution on the iPhone to thwart innovations that would have made it easier for consumers to switch phones. Antitrust enforcers alleged the company has refused to support cross-platform messaging apps, limited third-party digital wallets and non-Apple smartwatches, and blocked mobile cloud streaming services.

“The implausibility of the government’s claim that Apple’s conduct has eroded smartphone competition is underscored by the complaint’s implicit recognition that the smartphone market exhibits ongoing innovation and vigorous competition,” according to Apple’s filing.

In addition to the competition Apple faces from other smartphone makers, “third-party developers are flourishing on Apple’s platform, offering iPhone users a wide range of competitive choices,” the company said.

Companies typically ask judges to dismiss antitrust cases, though they rarely succeed in cases brought by the government.

US District Judge Julien Neals, an appointee of President Joe Biden who joined the bench in 2021, is likely to hold a hearing on Apple’s request to dismiss the case later this year.

The case is US v Apple, 24-cv-04055, US District Court, District of New Jersey.

–With assistance from Mark Gurman.

(Updates with details of filing)