“This lawsuit is based on the false premise that the iPhone “Success is achieved not by building quality products that consumers trust and love, but by Apple deliberately reducing iPhone performance to thwart purported competitive threats. This outlandish assertion has no bearing on reality,” the filing reads.
The lawsuit, filed in May, accuses Apple of violating the Sherman Act by using the iPhone to prevent other companies from offering competing services such as digital wallets. The lawsuit also accuses Apple of blocking streaming apps, suppressing the quality of messages between the iPhone and rival smartphones, and limiting the functionality of third-party smartwatches. It claims that Apple makes it difficult for developers to “break out of the Apple operating system.”
Apple claims it has granted third parties full access to the iPhone, its features and the App Store.
“The government’s argument that Apple must open its platform and technology to third parties on the terms and conditions they prefer is simply not a viable antitrust law theory,” Apple’s motion states. “The third parties involved here are well-capitalized. Social media companies, big banks and global game developers are all formidable competitors in their own right, and none have the same incentives to protect the integrity or security of the iPhone.
The motion also details how Apple will not become a monopoly.
“Apple competes with global giants such as Google (GOOG) (GOOGL) (owner of the world’s dominant mobile operating system) and Samsung (OTCPK:SSNLF) (the world leader in smartphone sales),” the motion reads.
Apple’s motion says the antitrust lawsuit seeks to give the U.S. government “unprecedented power” over the control and design of Apple products.
“Such a sweeping rule, if adopted, would harm innovation and risk depriving consumers of the private, secure experience that sets iPhone apart from other products on the market,” the motion states. “The complaint should be dismissed.” ”
This antitrust lawsuit is the third time the Department of Justice has sued Apple in the past 14 years. If the current litigation proceeds, it could be several years before a trial begins.
