2024-03-26 20:36:05
Lawsuits in the United States caused Apple to lose tens of billions in market value, according to Bloomberg, Friday.
In the United States, the Department of Justice and 16 attorneys general filed a lawsuit against Apple for violating antitrust laws. In Europe, the company is said to be facing investigations into whether it complies with the region’s digital markets law.
The company’s share price fell by more than 4% on Thursday, causing Apple to lose about $115 billion of its market value, bringing the stock’s losses since the beginning of the year to date to more than 11%.
After it was once the most valuable company in the world with more than $3 trillion, the company’s stock performance lagged behind the Nasdaq 100 and S&P 500 (Standard & Poor’s) indices in 2024.
This is not the first time Apple has been subject to regulatory scrutiny. The company and its counterparts have for years faced accusations of enrichment by suppressing competitors. But as Apple products grow in popularity and establish themselves as part of consumers’ daily lives around the world, authorities have also become more aggressive and wary of their power, according to Bloomberg.
The American lawsuit filed Thursday in New Jersey federal court accuses Apple of preventing competitors from accessing hardware and software features on its popular devices.
Potential investigations in Europe – which may also target some of Apple’s competitors – may focus on the new fees, terms and conditions that the company is applying to App Store developers.
For its part, Apple responded to the American case, describing it as “wrong with regard to the facts and the law.” She warned that this measure would set a dangerous precedent, enabling the government to violently interfere in the design of technology that concerns humanity, and pledged to “vigorously defend against it.”
The US lawsuit alleges that Apple used its authority to distribute applications on the iPhone to thwart innovations that would make it easier for consumers to switch phones.
The lawsuit highlights five examples of technologies with which it says Apple suppresses competition: super apps, cloud streaming gaming apps, messaging apps, smart watches, and digital wallets. The company recently added support for cloud-based gaming services, and said it will add cross-platform RCS messaging later this year.
On the other hand, the Digital Markets Act allows the European Commission to impose heavy penalties of up to 10% of a company’s total global annual revenue, and up to 20% for companies that repeatedly violate the rules. Apple was just hit with a €1.8 billion ($2 billion) fine from the European Union for preventing music streaming apps from informing users about cheaper offers.
Apple has been under intense scrutiny since the Digital Markets Law came into full effect on March 7.
Last updated: March 22, 2024 – 16:07
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2024-03-26 20:36:05