Apple (NASDAQ:AAPL) is seeking to dismiss a U.S. antitrust lawsuit

Apple (NASDAQ:AAPL) moved to dismiss the lawsuit filed in March by the Department of Justice and 15 states. The lawsuit alleged that the tech giant had a complete monopoly on the smartphone market, hurt smaller rivals and drove up prices.

In a letter to U.S. District Judge Julien X. Neals, the company said the iPhone maker is not a monopoly and faces fierce competition in the market. Additionally, AAPL said the U.S. Department of Justice (DoJ) is relying on a new “theory of antitrust liability that no court has recognized.”

The U.S. government is expected to respond to the letter within a week.

Charges of the US Department of Justice against AAPL

The Justice Department accused AAPL of an illegal monopoly in the smartphone market because it imposes contractual restrictions on developers and, in some cases, withholds critical access to the app store.

Moreover, the Department of Justice pointed out that the company’s iPhones are expensive, with prices reaching $1,599, which causes AAPL to make much higher profits than its rivals. Additionally, the Justice Department alleged that AAPL imposes hidden fees on its business partners, including app developers, credit card issuers, and even its competitors such as Alphabet-owned Google (NASDAQ:GOOGL). This results in higher prices for the company’s end users.

Apple denied these allegations and maintained that consumers or business partners dissatisfied with these restrictions “have every incentive to switch to competing platforms that apparently do not have these restrictions.”

Is Apple worth buying, selling or holding?

Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 21 Buys, 11 Holds and one Sell. AAPL has gained over 10% over the last year, and AAPL’s $203.93 average price target implies a 6% upside potential from current levels.