Apple says the US antitrust lawsuit should be dismissed

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by David Shepardson

WASHINGTON (Reuters) – Apple said on Tuesday it plans to ask a U.S. judge to dismiss a lawsuit filed in March by the Justice Department and 15 states that accused the iPhone maker of monopolizing the smartphone market, hurting smaller rivals and raising prices.

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In a letter to U.S. District Judge Julien that Apple is able to charge supra-competitive prices or limit production at the alleged extent

smartphone markets.”

Apple said the complaint should be dismissed for several reasons. In a letter to the judge, Apple argues that the Justice Department is relying on a up-to-date “theory of antitrust liability that no court has recognized.”

The Justice Department, which had no immediate comment Tuesday, previously said Apple charges as much as $1,599 for an iPhone and makes more profit than any other company in the industry. Officials also said that Apple collects fees behind the scenes from various business partners – from software developers to credit card companies and even its rivals such as Alphabet’s (NASDAQ:) Google – in a way that ultimately raises prices for consumers and increases Apple profits.

Apple rejected the government’s claims that the iPhone has “tied” consumers to the devices. “Someone who is unhappy with Apple’s restrictions has every reason to opt for them

competing platforms that allegedly do not have such restrictions,” we read in the letter.

The Justice Department said Apple was forcing consumers to pay higher fees.

“Consumers should not have to pay higher prices because companies violate antitrust laws,” Attorney General Merrick Garland said in March. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”

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