• A federal judge denied Apple's motion to dismiss the DOJ's antitrust lawsuit.
• The lawsuit claims Apple unlawfully dominates the smartphone market by restricting competition.
• Apple's revenue from iPhone sales reached $201 billion in 2024.
• The case is part of a broader antitrust movement against major tech companies.
• A potential trial could reshape Apple's business model and practices.

A U.S. District Judge, Julien Neals, ruled on Monday that Apple must face the U.S. Department of Justice's (DOJ) antitrust lawsuit, denying the company’s request to dismiss the case. The lawsuit accuses Apple of unlawfully dominating the smartphone market by imposing restrictions on third-party app developers and creating barriers that prevent users from switching to competitors. This ruling allows the case to proceed, marking a significant legal challenge for Apple, which could last for years, according to Channel News Asia and Reuters.

The DOJ alleges that Apple has created a "walled garden" that stifles competition, focusing on restrictions that inflate prices for consumers and limit developer options. The lawsuit, filed in March 2024, highlights Apple's practices concerning third-party smart devices, digital wallets, and messaging services. Apple's defense argues that these limitations are reasonable business practices and essential for maintaining innovation within its ecosystem, as stated by various sources, including India Times and The Hill.

The judge's decision signals that the allegations of anticompetitive behavior are severe enough to warrant a full trial as he acknowledges the potential for Apple to have unlawfully monopolized the smartphone market. This scrutiny comes amid a larger trend of antitrust actions against major tech firms, as various administrations have sought to address monopolistic practices across the sector. The outcome of this lawsuit could significantly impact Apple's operations and pricing strategies for its highly profitable iPhone line, which generated $201 billion in sales last year, according to India Times and Reuters.