Apple files motion to dismiss DOJ antitrust lawsuit
The Department of Justice has filed a motion to dismiss Apple's antitrust lawsuit, which the company says it has filed against it.
Memorandum of Law – #86, Att. #1 in UNITED STATES OF AMERICA v. APPLE INC. (DNJ, 2:24-cv-04055) – CourtListener.com
Apple files motion to dismiss DOJ antitrust lawsuit - The Verge
https://www.theverge.com/2024/8/1/24211386/apple-motion-to-dismiss-doj-antitrust-lawsuit
In March 2024, the Department of Justice and attorneys general of 16 states and districts of the United States sued Apple for violating antitrust laws, alleging that Apple illegally monopolized the U.S. smartphone market. The Department of Justice urged the court to 'authorize a judicial redesign of the iPhone, one of the most innovative and consumer-friendly products in history.'
Apple sued by Department of Justice and 16 attorneys general for smartphone monopoly, Apple takes on 'dangerous precedent' - GIGAZINE
The lawsuit alleges that Apple violated antitrust laws by pursuing profits and maintaining a closed iPhone ecosystem at the expense of consumers and innovation. The complaint cites examples such as Apple throttling messaging quality between competing platforms such as Android , and the iPhone's cashless payment function, which thwarted developers of competing services .
At the time of writing, Apple has already announced support for RCS, which it had been holding off on for a long time.
Apple announces that it will adopt RCS from 2024, enabling read notifications for text messages and sending and receiving high-resolution photos and videos between iPhone and Android - GIGAZINE
It also announced that it would open up the iPhone's payment system to third-party developers to avoid lawsuits in the EU.
Apple avoids EU lawsuit by opening iPhone payment system to rivals - GIGAZINE
In response, Apple filed a motion to dismiss the antitrust lawsuit with the court on August 1, 2024 local time. In the motion, Apple criticized the plaintiffs' argument, saying, 'The success of the iPhone is based on the false premise that Apple intentionally lowered the quality of the iPhone to thwart a perceived competitive threat, rather than on developing a superior product that consumers trust and love.'
He further argued that the plaintiffs' arguments were 'outlandish' and that antitrust law is meant to protect 'Apple's ability to design and control its own products,' not to pander to third-party developers.
In addition, Apple claims that it allows third-party developers 'exceptionally broad' access to the iPhone, but 'also imposes reasonable restrictions to protect consumers.' Apple points out that the third-party developers at issue in its complaint are not small startups, but 'well-funded social media companies, major banks, and global game developers, all of which are powerful competitors in their own right, and none of them have the same incentive as Apple to protect the integrity or security of the iPhone.'
Apple cited five reasons why the Department of Justice's antitrust lawsuit should be dismissed:
- Apple is under no obligation to collaborate with any third-party developer, and choosing not to collaborate is not an exclusionary act.
The Department of Justice has failed to adequately connect Apple's approach to messaging apps, super apps , cloud streaming apps, smartwatches and digital wallets to how consumers decide which smartphone to buy.
- Apple does not dominate the smartphone market enough to be considered a monopoly.
- The Department of Justice has not sufficiently demonstrated Apple's intent in attempting to assert a monopoly claim.
The Department of Justice has overly broadened the scope of its lawsuit 'by superficially referencing numerous Apple products and services.'
In addition, Apple has requested oral argument to argue its motion to dismiss the lawsuit, stating that if the Justice Department were to press its case, it 'risks stifling innovation and depriving consumers of the privacy, safety and security that make iPhones different from other options in the marketplace.'
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