Apple plans to ask a U.S. judge to dismiss a lawsuit filed by the Justice Department and 15 states in March that alleged the iPhone maker monopolized the smartphone market, hurt smaller rivals, and drove up prices. Apple argues that it faces fierce competition from well-established rivals and that the complaint fails to allege that Apple has the ability to charge supra-competitive prices or restrict output in the alleged smartphone markets. The government is expected to respond within seven days to Apple's letter. The Justice Department alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants. Apple rejects the government's contentions that the iPhone has kept consumers 'locked in' to the devices [200316d7].
In a recent development, Apple has stated its intention to seek the dismissal of the antitrust lawsuit filed against it by the Justice Department and 15 states. The lawsuit, filed in March, accuses Apple of monopolizing the smartphone market, harming smaller competitors, and driving up prices. Apple argues that it faces strong competition from well-established rivals and that the complaint fails to provide evidence that Apple has the ability to charge supra-competitive prices or restrict output in the alleged smartphone markets. The government has a week to respond to Apple's request for dismissal. The Justice Department alleges that Apple leverages its market power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants. Apple disputes the government's claims that the iPhone has created a lock-in effect for consumers [200316d7].
Apple is preparing to challenge an antitrust lawsuit filed by the US Justice Department and 15 states, accusing the tech giant of monopolizing the smartphone market, stifling competition, and driving up prices. Apple asserts that it faces strong competition from other established smartphone manufacturers, thereby disputing claims that it holds a monopolistic position. The Justice Department's lawsuit accuses Apple of leveraging its market power to extract more money from consumers and various business partners. Apple refutes that it locks consumers into its ecosystem and emphasizes that it offers competitive prices and innovation in response to a dynamic market. The Justice Department is expected to respond to Apple's letter within the next week [e5001294].
Alphabet's Google will not face a jury trial over its alleged digital advertising dominance after the company wrote a check to the United States to cover monetary damages. The U.S. Justice Department and a coalition of states sued Google last year, claiming it was unlawfully monopolizing digital advertising and overcharging users. The ruling by U.S. District Judge Leonie Brinkema in Alexandria, Virginia means Google will face a non-jury trial in the lawsuit, which seeks primarily to break up its digital advertising business to allow for more competition. Google confirmed the ruling but declined to comment further. The company has denied wrongdoing and said it was not admitting liability by submitting a damages payment. The final amount of damages has not been disclosed. The Justice Department declined to comment [e242fcf4].
Google has lost its bid to end a US antitrust case over digital advertising. U.S. District Judge Leonie Brinkema in Alexandria, Virginia, denied Google's motion during a hearing. The case is related to allegations of anticompetitive behavior in the digital advertising industry. The ruling comes after Google's parent company, Alphabet Inc., was sued by the US Department of Justice and several states in October 2020. The lawsuit accuses Google of using its dominant position in the market to stifle competition and maintain its monopoly. The trial is scheduled to begin in September 2024.
Google is making efforts to reduce its dependence on Apple's Safari browser amid an antitrust battle with the US Department of Justice (DOJ). The DOJ's case focuses on Google's deal with Apple to be the default search engine on iPhones, which is seen as stifling competition in the search engine market. Google is planning to restrict Apple Safari users from utilizing new AI features, potentially pre-empting the outcome of the antitrust lawsuit. Google's strategy involves encouraging users to switch to the Google or Chrome apps for their search needs, aiming for a 50% share of iPhone searches conducted through its own apps by 2030. By driving users towards its own apps, Google reduces its financial obligation to Apple and weakens the influence of potential regulations. However, convincing users to switch from Safari to Google's apps is challenging due to Safari being pre-installed on all Apple devices. Google has recruited Robby Stein, a former executive at Instagram and Yahoo, to spearhead the effort away from Safari. Despite Google's efforts, the impact remains to be seen, pending the DOJ's antitrust decision expected in the next few months [16c83ae8].
Google considered blocking Safari users from accessing new AI features as part of its strategy to navigate antitrust challenges. The Justice Department is investigating Google's agreement with Apple, which makes Google the default search engine on iPhones in exchange for $20 billion annually. The agreement is seen as stifling competition in the search engine market. Google has been trying to persuade iPhone users to switch to Google or Chrome apps for their searches, but the effort stalled last year. Google's goal is to have 50% of iPhone searches conducted through its own apps by 2030. The company's payments to Apple are part of a revenue-sharing agreement, and by reducing reliance on Safari, Google can decrease these payments and regulatory risks. However, convincing users to abandon Safari has proven difficult. Google hired Robby Stein to lead the effort, but ultimately decided not to restrict its AI Overviews feature to its own apps. The outcome of the Justice Department's antitrust case, expected in the next few months, will be a pivotal factor in Google's ongoing struggle to detach from Safari [aa2883f3].