Apple’s (AAPL) legal troubles just deepened. A federal judge has denied the tech giant’s attempt to dismiss an antitrust lawsuit brought by the Department of Justice (DOJ) and 16 state attorneys general. The move could reshape how Apple operates its ecosystem.
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The case is now set for a long court battle that could last for years. If the DOJ wins, Apple may be forced to open up its platform, potentially allowing more freedom for third-party apps and services and changing how its users interact with their devices.
This ruling also comes amid a broader crackdown on Big Tech, with Alphabet’s (GOOGL) Google, Meta (META), and Amazon (AMZN) all facing similar scrutiny.
Judge Says Apple Must Face Lawsuit Over Blocking Competition
The lawsuit, originally filed in March 2024, accuses Apple of using its control over the iPhone and related services to stifle competition and hurt innovation. The DOJ claims AAPL has built a “walled garden” that unfairly limits access for rival apps, smartwatches, digital wallets, and messaging platforms.
U.S. District Judge Julien Neals said the DOJ presented enough proof to move forward. He pointed to the iPhone maker’s tech limits that might block rivals and noted messages showing AAPL may have tried to stay on top by shutting out competition.
However, Apple strongly disagrees. The company said its system is built to keep users safe and provide a smooth experience, not to block other companies.
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street, AAPL stock has a Moderate Buy consensus rating based on 16 Buys, nine Holds, and four Sells assigned in the last three months. At $226.54, the average Apple stock price target implies a 10.42 upside potential.
