JUDGE GREENLIGHTS APPLE ANTITRUST CASE

A federal judge in New Jersey has rejected Apple’s bid to dismiss a major antitrust lawsuit filed by the U.S. Justice Department, paving the way for a trial that could reshape the tech giant’s iPhone ecosystem.

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The 33-page ruling by U.S. District Judge Xavier Neals found enough evidence to support claims that Apple’s practices create a “walled garden” that stifles competition and inflates prices. The case, backed by 16 state attorneys general, accuses Apple of monopolizing the smartphone market through restrictive policies, with a trial potentially set for 2027.

The lawsuit targets Apple’s control over the iPhone, iPad, and App Store, alleging that the company blocks competitors from key features like digital wallets, third-party app stores, and messaging apps. Neals wrote that the Justice Department’s claims of “technological barricades” raise a “dangerous possibility” that Apple has turned the iPhone into an illegal monopoly.

Apple countered that the government misread the smartphone market and that its curated ecosystem benefits users, but the judge ruled the allegations merit further scrutiny.

The decision lands amid other legal woes for Apple, including a separate lawsuit from app maker Proton seeking class-action status for thousands of developers, demanding punitive damages and an end to Apple’s restrictive policies. The company, which reported $94 billion in profits on $295 billion in sales last fiscal year, faces growing pressure to open its platform, with implications for its business model and consumer experience.

THE CASE AGAINST APPLE’S ECOSYSTEM