Follow-up – Al-Rashid
Lawsuits in the United States caused Apple to lose tens of billions in market value, according to Bloomberg.
The US 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 indices in 2024.
According to Bloomberg, this is not the first time that 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, the authorities have also become more aggressive and wary of their power.
The American lawsuit, filed in federal court in New Jersey, accuses Apple of preventing competitors from accessing hardware and software features on its popular devices.
As for potential investigations in Europe, which may also target some of Apple’s competitors, they may focus on the new fees, terms and conditions that the company applies 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,” warning that this measure “will 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.”
Apple, which 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, has been under intense scrutiny since the Digital Markets Act came into full effect on March 7.
