A historic antitrust case that once promised to significantly change how iPhones function may never reach a courtroom. Apple and the US Department of Justice are in early settlement talks over a 2024 lawsuit accusing the iPhone company of illegally monopolizing the smartphone industry, Bloomberg News reported on July 17, 2026, citing sources. The conversations are described as ongoing, but no agreement has been reached, and no trial date has been scheduled. Crucially, Apple has already made multiple settlement proposals to the DOJ in 2026 alone, indicating that the corporation wants to conclude this chapter before its leadership change in September, when hardware chief John Ternus succeeds Tim Cook as CEO.
Apple and the DOJ did not immediately respond to requests for comment, and Reuters could not independently verify the report.
“Apple Inc. and the US Justice Department are in early discussions about settling a 2024 lawsuit that alleges the iPhone maker violated antitrust laws. Apple has made multiple offers this year to the DOJ to bring the case to a close. Discussions are active but no agreement reached yet.”~Bloomberg
What The DOJ’s 2024 Lawsuit Actually Alleged:
The DOJ sued Apple for antitrust violations in 2024 as part of an expansive antitrust investigation into major tech companies, accusing Apple of getting customers “hooked” on its platform through a long-running history of anti-competitive behaviour. The lawsuit targeted five specific areas where the government argued Apple used its control of the iPhone platform to suppress competition and lock users in.
The DOJ’s antitrust lawsuit against Apple focused on five major aspects of the iPhone experience: super apps with broad capabilities, cloud streaming games, third-party messaging apps, third-party smartwatches, and third-party digital wallets. Each of these represented a market where Apple’s restrictions allegedly made it harder for competitors to gain a foothold, reinforcing consumer dependence on Apple’s own services and hardware.
The department and 15 states sued Apple in 2024 as the government cracked down on Big Tech, alleging the iPhone maker monopolised the smartphone market, hurt smaller rivals and drove up prices. The case was filed under the Biden administration and survived Apple’s motion to dismiss in 2025.
“Apple is in early settlement talks with the DOJ over the 2024 iPhone antitrust lawsuit. Apple has proposed several offers this year. The DOJ’s case focused on super apps, cloud gaming, third-party messaging, smartwatches and digital wallets. Apple has already made changes addressing some of these concerns.”~MacRumors
Apple’s Policy Changes Have Already Weakened The DOJ’s Case:
One reason a settlement has become more plausible is that Apple has not stood still while the legal process moved forward. Apple has made genuine changes over the last year to address some of the DOJ’s concerns. That includes supporting RCS in the Messages app, a new Mini Apps Partner Program in the App Store, and broadening access to the iPhone’s NFC chip.
These actions specifically addressed many of the specific complaints in the original complaint. RCS compatibility in Messages helps to decrease the lock-in effect of Apple’s proprietary messaging system. NFC chip access answers the digital wallet restriction claim. The Mini Apps scheme relaxes the super app limits. Since the lawsuit was filed, Apple has opened up the iPhone in ways that may appease lawmakers. Apple previously lost a bid to dismiss the antitrust lawsuit in 2025, but the original lawsuit sought to force Apple to open the iPhone in ways similar to the EU’s Digital Markets Act, and Apple has done just that.
Apple has made multiple offers to resolve its 2024 lawsuit with the Department of Justice after addressing some of the government’s concerns, though wearables remain a key sticking point. The smartwatch limitation specifically Apple’s restrictions on how third-party smartwatches integrate with the iPhone compared to the Apple Watch appears to be the most unresolved element of the five original areas of concern.
“Apple is in talks to settle its DOJ antitrust lawsuit. Apple has made multiple offers in 2026. Changes already made include RCS support, NFC chip access expansion, and a Mini Apps Programme. Wearables remain a key sticking point. No trial date has been set.”~9to5Mac
Trump DOJ’s Transparency To Settlements And The Incoming CEO Factor:
The political context matters. The Justice Department under Trump has sought to settle myriad antitrust cases filed by the previous administration. Stanley Woodward, the No. 3 Justice Department official currently overseeing the agency’s antitrust work, has pushed for settlements, viewing them as a way to save taxpayer dollars and bring more immediate relief to consumers than litigation that can last for years.
Recent reporting indicated that senior DOJ officials have shown greater openness to negotiated settlements in certain competition cases rather than pursuing lengthy litigation through trial. That posture creates a window of opportunity for Apple that did not exist under the previous administration’s more aggressive antitrust enforcement approach.
If Apple and the DOJ can reach a settlement, it would be a huge weight off John Ternus’s shoulders when he takes over as Apple CEO in September. Ternus, who built his reputation running Apple’s hardware engineering organisation, would prefer to begin his tenure focused on product and technology roadmaps rather than managing a high-stakes government antitrust trial. Apple has already made multiple offers to the Justice Department in 2026 alone. Whether the remaining gap particularly over wearables can be bridged will determine whether this case closes quietly or proceeds to become one of the defining antitrust trials of the decade.
