Apple Seeks Dismissal Of 'Outlandish' Antitrust Charges

Apple on Thursday urged a federal judge to throw out a lawsuit brought by federal and state prosecutors who claim the company wrongly maintains a monopoly in the smartphone market.

“This lawsuit is based on the false premise that iPhone’s success has come not through building a superior product that consumers trust and love, but through Apple’s intentional degradation of iPhone to block purported competitive threats,” the company argues in a dismissal motion filed with U.S. District Court Judge Julien Neals in New Jersey.

“That outlandish claim bears no relation to reality,” Apple adds.

Apple's motion comes in response to antitrust charges brought in March by the federal government and a coalition of states.

Their complaint included allegations that Apple degrades other companies' apps or products, effectively hindering consumers' ability to leave the Apple ecosystem, and thwarting developers' ability to offer competing services.

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For instance, the authorities alleged that Apple degrades other companies' smartwatches in several ways -- including by preventing iPhone users from responding to messages or accept calendar invites via another manufacturer's smartwatch.

The complaint also alleged Apple's digital wallet is the only iPhone app capable of using near-field communication, which allows consumers to pay by tapping their phones.

Apple essentially counters in its new court papers that those allegations, even if proven true, would not show an antitrust violation.

“Apple is not required to grant third parties more access -- or to build altogether new technology for their use -- on the less-secure, less private terms certain developers prefer,” the company says.

Apple also argues that its decisions about other companies' smartwatches or digital wallets reflect choices “about how to design its product suite, the terms on which it is willing to deal with third-party rivals, and when and how to invest in further opening access to its technology.”

Apple adds: “That those rivals might want greater access to Apple’s technology and platform is no basis for liability.”

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