Apple loses $115 billion in mcap as regulators close in

Mar22,2024


regulator With our sights set on both sides of the Atlantic Appledisturbing investors Fears over fines and its market dominance are under threat.
In the US, the Justice Department and 16 attorneys general are suing the iPhone maker for infringement disbelief Law. And in Europe, the company is facing scrutiny over whether it is complying with the region's Digital Markets Act.
The company's shares fell more than 4% on Thursday, wiping off about $115 billion in market value and taking their year-to-date losses to more than 11%. Apple, once the world's most valuable company at more than $3 trillion, has underperformed both the Nasdaq and the S&P in 2024.

Screenshot 2024-03-23 ​​​​044931

This is not the first time Apple is coming under regulatory scrutiny. The company and its associates have been accused for years of enriching themselves by suppressing competitors. But as Apple's products have become more popular and established as part of daily life around the world, executives have also become more militant and wary of its power.
The US lawsuit, filed Thursday in New Jersey federal court, accuses Apple of blocking rivals from accessing hardware and software features on its popular devices. The potential investigation in Europe, which also targets some of Apple's rivals, will focus on the firm's new fees, terms and conditions for App Store developers.
“There comes a time when the sheer number of cases and the scrutiny that comes with them becomes a real drag on the operations of these companies,” said Bill Kovacic, an antitrust professor at George Washington University Law School. “Even if they win, in an important way, they've lost.” Apple hits back at America trial Calling it “incorrect on facts and law”. It warned that the action would “set a dangerous precedent, giving the government the power to impose strict restrictions on how people design technology”.
The company did not respond to a request for comment on the possible European investigation. The US lawsuit alleges that Apple used its power over app distribution on the iPhone to thwart innovations that would have made it easier for consumers to switch phones. The DOJ highlights five examples of technologies in which it says Apple suppresses competition: super apps, cloud streaming game apps, messaging apps, smartwatches, and digital wallets. The company recently added support for cloud-based gaming services and says it will add RCS cross-platform messaging later this year.



Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *