A U.S. judge has ruled that Apple must face a Department of Justice (DOJ) lawsuit alleging it unlawfully dominates the U.S. smartphone market. The decision allows the high-stakes antitrust case to proceed, marking a significant development that could impact Apple’s control over its ecosystem and long-term business strategy.
The lawsuit, initially filed in March 2024, accuses Apple of using restrictive practices to lock in iPhone users and exclude competing services and hardware. These include limitations on third-party app developers, barriers for competing smartwatches, digital wallets, and messaging services, and fees that allegedly suppress innovation and consumer choice.
If successful, the lawsuit could force Apple to change how it operates its App Store, interfaces with third-party hardware, and manages services within its iOS environment. This would mark a shift for a company that generated $201 billion in smartphone sales in 2024 and recently launched a higher-priced budget iPhone model.
Apple has rejected the DOJ’s claims, stating that its practices are pro-innovation and consistent with industry norms. The company insists it will vigorously fight the charges, arguing that mandated openness could compromise user privacy and product security, Reuters news report said.
Apple in the US
Apple remained the leading smartphone brand in the US, maintaining the highest market share across all quarters from Q4 2023 to Q1 2025. Its share peaked at 65 percent in Q4 2024 before dipping to 57 percent in Q1 2025, according to CounterPoint Research.
Samsung held the second position, with a notable rise from 17 percent in Q4 2023 to 31 percent in Q1 2024, fluctuating afterward and settling at 25 percent in Q1 2025.
Lenovo showed steady performance, increasing from 9 percent in Q4 2023 to a high of 14 percent in Q3 2024, then moderating to 11 percent in Q1 2025.
HMD maintained a marginal presence with 2 percent in early quarters, disappearing entirely by Q4 2024. The share of other brands declined from 10 percent in Q4 2023 to 7 percent in Q1 2025, showing limited competitive strength in the market.
The ruling adds pressure to Big Tech more broadly, as Apple joins Meta, Amazon, and Google in facing intensified antitrust scrutiny in the U.S. The case could stretch over years but already casts uncertainty over Apple’s services-driven growth model and ability to maintain tight integration across its devices and platforms.
Baburajan Kizhakedath
