Occurrences
Divisions
Programs
Occurrences
Divisions
Programs
Apple's market valuation drops by $115 billion following an iPhone antitrust lawsuit
Apple's stock prices significantly plummeted, decreasing by approximately $113 billion on Thursday, as a consequence of the US Department of Justice launching an antitrust legal challenge against the tech behemoth headquartered in Cupertino. Concurrently, Apple is potentially facing a fresh probe in the European Union due to the introduction of the new Digital Markets Act.
The parties invested in Apple, including stakeholders and investors, are worried about the potential impact of the numerous legal battles the tech giant is currently involved in on the company's fiscal stability and overall wellbeing.
Apple is currently dealing with a fresh lawsuit in the United States, initiated by the Justice Department along with 16 state attorneys general, who claim the company is breaking antitrust laws. Simultaneously, in Europe, officials are reportedly scrutinizing Apple's compliance with the Digital Markets Act, increasing the regulatory scrutiny on the firm.
Investors are expressing concern over possible penalties as authorities in the U.S. and Europe scrutinize Apple's activities meticulously.
Apple's experience with regulatory oversight isn't new. Over time, both Apple and its fellow industry players have been accused of monopolistic behaviors, making gains by suppressing competition. Yet, as Apple's products have become more and more common in everyday life globally, regulatory bodies have become more proactive in tackling issues related to its market dominance.
The stock market felt the impact, as Apple's stock fell by 4.1 per cent on Thursday. This drop resulted in a loss of around $113-$115 billion in market value, contributing to an 11 per cent loss since the beginning of the year. Despite Apple's recent status as the world's most valuable company with a valuation over $3 trillion, its 2024 performance has been trailing behind both the Nasdaq 100 and the S&P 500. As of the time this article was written, Apple’s market value was roughly $2.65 trillion.
The Department of Justice has lodged an antitrust lawsuit in a New Jersey federal court on Thursday, alleging that Apple is blocking competitors from using hardware and software features on its highly sought-after devices. In a similar vein, potential probes in Europe will not just focus on Apple, but also some of its rivals. These investigations will closely examine Apple's policies about charges, terms, and conditions for app store developers.
Responding to the US Department of Justice's lawsuit, Apple criticized it as inaccurate in terms of facts and legal basis. The tech giant warned that these kinds of legal pursuits could set a standard that allows government interference in tech creation. They firmly stated their plan to strongly dispute the claims. Yet, Apple chose not to provide any comments regarding possible investigations in Europe.
The U.S. legal action asserts that Apple has taken advantage of its authority over app dissemination on the iPhone to hinder innovations that could aid customers in transitioning to different phones. The charges include Apple's unwillingness to back cross-platform messaging apps, limitations on digital wallets not affiliated with Apple, restrictions on non-Apple smartwatches, and the obstruction of mobile cloud streaming services.
Apple stood up for its methods, highlighting its dedication to innovation focused on improving user experiences and prioritizing safety and privacy. However, the lawsuit could potentially harm the company's image and the values it considers make its products distinct in highly competitive markets.
The Digital Markets Act in Europe empowers the European Commission to levy hefty fines, as much as 10% of a firm's global annual income, and twice that for recurring violators. After launching official probes into Apple and Google, the regulatory bodies intend to finalize their verdicts within a year.
The recent penalty of 1.8 billion Euros, approximately $2 billion, imposed on Apple by the European Union for preventing music streaming apps from alerting users of more affordable options highlights the increased examination following the enforcement of the Digital Markets Act on March 7th.
(Incorporating information from various sources)
Look for us on YouTube
Prime Programs
are available on YouTube
Firstpost holds all rights, protected by copyright, as of 2024
+ There are no comments
Add yours