Activities
Divisions
Performances
Activities
Divisions
Performances
Apple's market value decreases by $115 billion following a lawsuit in an iPhone anti-competition case
Apple’s stock values experienced a significant drop, decreasing approximately $113 billion on Thursday following the filing of an anti-competition lawsuit by the US Department of Justice against the tech giant based in Cupertino. In addition, Apple is facing a potential new inquiry in the European Union due to the introduction of the new Digital Markets Act.
People invested in Apple, including stakeholders, are worried about the impact of the numerous legal battles the tech firm is currently embroiled in on its financial stability and overall well-being.
Apple is confronting a fresh legal challenge in the United States, brought forth by the Justice Department along with attorneys general from 16 states, accusing the company of infringing antitrust laws. Simultaneously, in Europe, officials are supposedly scrutinizing Apple's compliance with the Digital Markets Act, thereby increasing the regulatory scrutiny on the corporation.
Investors are expressing concerns about possible penalties as regulatory authorities in the US and Europe scrutinize Apple's operations meticulously.
Apple is no stranger to regulatory scrutiny. The tech giant, along with other industry players, has often been accused of monopolistic behaviors, allegedly profiting from suppressing competition. Yet, as Apple's products have become more and more prevalent in everyday life globally, regulators have become more proactive in tackling issues related to its market dominance.
The consequences were clearly seen in the stock market as Apple's stock dropped by 4.1 per cent on Thursday. This decrease resulted in a loss of around $113-$115 billion in market value, leading to a total loss of 11 per cent for the year. Despite Apple's recent status as the world's highest valued company with a worth over $3 trillion, its performance in 2024 has not kept up with either the Nasdaq 100 or the S&P 500. At the time of writing this piece, Apple's market cap was approximately $2.65 trillion.
The Department of Justice has lodged an antitrust lawsuit against Apple in a New Jersey federal court on Thursday. The allegations are that Apple is hindering competitors from accessing hardware and software components on its widely used devices. Likewise, possible probes in Europe will not only focus on Apple but also on some of its competitors. These investigations aim to examine the company's practices concerning charges, terms, and rules for app store developers.
Reacting to the US Department of Justice's lawsuit, Apple criticized it as being factually and legally inaccurate. The firm warned that these kinds of legal proceedings could set a dangerous precedent that enables government interference in tech development. They pledged to strongly dispute the claims. However, Apple chose not to remark on the possible investigations in Europe.
The U.S. legal action claims that Apple has abused its power over app distribution on the iPhone to hinder advancements that could assist customers in changing phones. The allegations include Apple's denial to back cross-platform messaging applications, limitations on third-party digital wallets and non-Apple smartwatches, as well as impeding mobile cloud streaming services.
Apple justified its methods, highlighting its dedication to pioneering technology designed to improve user experience, with a focus on privacy and safety. Regardless, the legal action poses a risk to the company's reputation and the values it holds that distinguish its products in highly competitive markets.
The Digital Markets Act in Europe gives the European Commission the power to enforce substantial fines, up to 10 percent of a firm's total global earnings, and twice that for recurrent violators. After conducting official probes into Apple and Google, the regulators plan 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 notifying users of more affordable options, highlights the increased examination since the Digital Markets Act came into effect on March 7th.
(Incorporating information from various sources)
Look for us on YouTube
Best Programs
are available on YouTube
Firstpost retains all rights, protected by copyright, in 2024.
+ There are no comments
Add yours