Apple Disputes Monopoly Claims in Court

In a letter to a federal judge, Apple disputes monopoly claims and says it faces fierce competition in the tech sector.

Apple announced in a statement that it was attempting to dismiss a US antitrust lawsuit that it was not a “monopolist” and “faces fierce competition” in the IT industry.

Apple’s attorneys denied American allegations that the company engaged in anticompetitive behavior by denying third parties access to its platform and by making design choices that “lock in” users to buying iPhones in a letter dated May 21 and addressed to New Jersey federal judge Julien Neals. The letter also requested a conference before Apple’s dismissal motion.

According to the company, Apple “makes unilateral decisions about the terms and conditions on which to permit third parties access to Apple’s proprietary platform,” which constitutes its alleged anticompetitive behavior.

The Justice Department filed an antitrust case against Apple in March, claiming that the company had a monopoly on smartphones that allowed it to restrict the capabilities and functionalities of digital wallets and payments, among other things, and that its policies for the App Store hampered competition.

Due to a 30% levy known as the “Apple Tax,” the tech company’s fiat-only payments system has long barred cryptocurrency usage in iOS apps or rendered it financially unfeasible for a crypto app to enable in-app purchases.

“In contrast to its competitors’ more open platforms, Apple has opted to offer users a curated, secure, and reliable experience,” the company stated.

Apple asserted that its purported anticompetitive behavior “occurred in other markets,” such as its regulations about digital wallets and that the government had failed to “properly define the relevant market or establish that Apple has monopoly power in it.”

“The government’s inability to identify the appropriate market for those products is deadly. Those products all exist in distinct markets with unique competitive dynamics.”

“A firm’s decisions about the terms on which it chooses to deal with third parties do not constitute exclusionary conduct,” according to the Big Tech player, undermining the US allegations.

Additionally, Apple refuted the DOJ’s assertion that it monopolizes the smartphone market, stating that Google and Samsung present “sharp competition.” While the latter leads global smartphone sales, the former boasts the most popular mobile operating system.

It said the US had not provided “a factual link” demonstrating how Apple’s “design decisions” entice smartphone users.

“There is every reason for someone dissatisfied with Apple’s limitations to move to competitor platforms, which purportedly do not have those limitations,” the statement stated.

A representative for Apple informed Cointelegraph shortly after the DOJ filed that the case might “set a dangerous precedent” and grant the government the authority to “take a heavy hand in designing people’s technology.”