Apple Says US Suit Over Smartphones 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 complaint also fails to demonstrate that Apple’s conduct has harmed consumers — a key component of antitrust cases, the company said.

“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.

Filings seeking to dismiss a lawsuit are common in antitrust cases, though they are rarely successful in cases brought by the government.

US District Judge Julien Neals, a Biden appointee 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.