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Investing.com -- A federal judge has ruled that Apple (NASDAQ:AAPL) must face the U.S. Department of Justice’s lawsuit accusing the company of unlawfully dominating the U.S. smartphone market.
On Monday, U.S. District Judge Julien Neals in Newark, New Jersey, denied Apple’s motion to dismiss the lawsuit. The case alleges that Apple uses restrictions on third-party app and device developers to prevent users from switching to competitors, thereby unlawfully dominating the market.
The decision allows the case to proceed in what could become a years-long legal battle for Apple against government enforcers who aim to reduce what they describe as barriers to competition with the iPhone.
The lawsuit, filed in March 2024, specifically targets Apple’s restrictions and fees imposed on app developers, as well as technical obstacles the company allegedly creates for third-party devices and services. These include smart watches, digital wallets, and messaging services that would compete with Apple’s own offerings.
The Department of Justice, along with several states and Washington, D.C., claims these practices eliminate competition and argues that Apple should be prohibited from continuing them.