Apple Loses Bid to Dismiss US Smartphone Monopoly Case

The  Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)
The Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)
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Apple Loses Bid to Dismiss US Smartphone Monopoly Case

The  Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)
The Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. (Reuters)

Apple must face the US Department of Justice's lawsuit accusing the iPhone maker of unlawfully dominating the US smartphone market, a judge ruled on Monday.

US District Judge Julien Neals in Newark, New Jersey, denied Apple's motion to dismiss the lawsuit accusing the company of using restrictions on third-party app and device developers to keep users from switching to competitors and unlawfully dominate the market.

The decision allows the case to go forward in what could be a years-long fight for Apple against enforcers' attempt to lower what they say are barriers to competition with Apple's iPhone.

An Apple spokesperson said the company believes the lawsuit is wrong on the facts and the law, and will continue to vigorously fight it in court.

A spokesperson for the DOJ declined to comment.

Sales of the world's most popular smartphone totaled $201 billion in 2024. Apple introduced a new budget model iPhone in February with enhanced features priced at $170 more than its predecessor.

The lawsuit filed in March 2024 focuses on Apple's restrictions and fees on app developers, and technical roadblocks to third-party devices and services, such as smart watches, digital wallets and messaging services, that would compete with its own.

DOJ, along with several states and Washington, DC, says the practices destroy competition and Apple should be blocked from continuing them. Apple had argued that its limitations on third-party developers' access to its technology were reasonable, and that forcing it to share technology with competitors would chill innovation.

The case is one of a series of US antitrust cases against Big Tech companies brought during the Biden and first Trump administrations.

Facebook parent Meta Platforms and Amazon.com are facing lawsuits by antitrust enforcers alleging they illegally maintain monopolies, and Alphabet's is facing two such lawsuits.



Microsoft Halts China-based Tech Support for Pentagon Systems

FILE - The Microsoft company logo is displayed at their offices in Sydney, Australia, on Feb. 3, 2021. (AP Photo/Rick Rycroft, File)
FILE - The Microsoft company logo is displayed at their offices in Sydney, Australia, on Feb. 3, 2021. (AP Photo/Rick Rycroft, File)
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Microsoft Halts China-based Tech Support for Pentagon Systems

FILE - The Microsoft company logo is displayed at their offices in Sydney, Australia, on Feb. 3, 2021. (AP Photo/Rick Rycroft, File)
FILE - The Microsoft company logo is displayed at their offices in Sydney, Australia, on Feb. 3, 2021. (AP Photo/Rick Rycroft, File)

Microsoft said Friday it is making sure that personnel based in China are not providing technical support for US Defense Department systems, after investigative news site ProPublica revealed the practice earlier this week.

Pentagon chief Pete Hegseth confirmed that work on Defense Department cloud services had been outsourced to people in China, insisting that the country will not have "any involvement whatsoever" with the department's systems going forward.

"Microsoft has made changes to our support for US Government customers to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services," the company's chief communications officer, Frank Shaw, said in a post on X.

ProPublica reported Tuesday that the tech giant was using engineers based in China -- Washington's primary military rival -- to maintain Pentagon computer systems, with only limited supervision by US personnel who often lacked the necessary expertise to do the job effectively.

US Senator Tom Cotton asked Hegseth to look into the matter in a letter dated Thursday, and the Pentagon chief responded that he would do so.

Hegseth then posted a video on X Friday evening in which he said "it turns out that some tech companies have been using cheap Chinese labor to assist with DoD cloud services. This is obviously unacceptable, especially in today's digital threat environment."

"At my direction, the department will... initiate -- as fast as we can -- a two-week review, or faster, to make sure that what we uncovered isn't happening anywhere else across the DoD," AFP quoted him as saying.

"We will continue to monitor and counter all threats to our military infrastructure and online networks," he added, thanking "all those Americans out there in the media and elsewhere who raised this issue to our attention so we could address it."