Apple May Soon Face Antitrust Lawsuit From Department of Jusice: Report
Portfolio Pulse from Erica Kollmann
Apple Inc (AAPL) is reportedly on the verge of facing a federal antitrust lawsuit from the U.S. Department of Justice (DOJ). The DOJ's investigation focuses on Apple's business practices, including the compatibility of the Apple Watch with the iPhone, the exclusivity of iMessage, the Apple Pay system, and restrictions on cloud gaming apps in the App Store. The DOJ has consulted with companies like Tile and Beeper, as well as financial service providers, about Apple's restrictive practices. This comes amid global regulatory scrutiny, with the European Digital Markets Act requiring open access to competing app stores on Apple devices. Apple's stock was down 0.40% at market close on Friday.
January 05, 2024 | 9:48 pm
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Apple Inc faces potential antitrust lawsuit from DOJ over various business practices, which could lead to increased regulatory pressure and impact its market dominance.
The news of a potential antitrust lawsuit by the DOJ against Apple for its business practices is likely to create uncertainty among investors and could negatively impact Apple's stock price in the short term. The investigation's focus on key aspects of Apple's ecosystem, such as the Apple Watch, iMessage, and Apple Pay, suggests significant regulatory risks that could affect the company's future operations and profitability. The historical context of Apple's 2012 lawsuit and the current global regulatory environment, with similar actions in Europe, Japan, and South Korea, further underscore the seriousness of the situation.
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