Apple Just Lost $113 Billion After Facing Antitrust Lawsuit

Apple has been at the center of controversies surrounding its market dominance and alleged monopolistic practices. The tech giant known for its innovative products, recently faced a major setback when it lost a staggering $113 billion after being hit with an antitrust lawsuit. The tech industry is closely watching how Apple navigates this crisis and what steps the company will take to address the allegations against it. Here is what we know so far.

Why Did Apple Lose $113 Billion?

Regulators in the US and Europe are scrutinizing Apple. They are raising concerns among investors about potential fines and challenges to its market dominance. In the US, the Justice Department and attorneys general are suing Apple for antitrust violations, while in Europe, probes are underway to determine if the company is complying with Digital Markets Act regulations.

On Thursday, the company’s shares dropped by 4.1%, resulting in a loss of approximately $113 billion in market value. This decline brought the year-to-date loss to 11%. Despite once being valued at over $3 trillion, Apple has performed worse than both the Nasdaq 100 and the S&P 500 in 2024.

What Is Apple Being Accused of?

The American lawsuit, filed in New Jersey federal court, alleges that Apple is preventing competitors from accessing hardware and software features on its devices. Potential investigations in Europe, also involving some of Apple’s rivals, will examine the company’s new fees, terms, and conditions for app store developers. Antitrust expert Bill Kovacic suggests that despite potential victories, increased scrutiny could hinder these companies’ operations significantly.

The US lawsuit accuses the company of leveraging its control over app distribution on the iPhone to stifle innovations that could facilitate easier consumer switching between phones. The DOJ claims that Apple has hindered cross-platform messaging apps, restricted third-party digital wallets and non-Apple smartwatches, and prevented mobile cloud streaming services.

Apple Replies

They responded to the US lawsuit by denouncing it as “wrong on the facts and the law.” The tech giant cautioned that it could establish a risky precedent by allowing government intervention in technology design. The company pledged to vigorously defend against the lawsuit. However, the tech company did not comment on the potential European probes.

The lawsuit against Apple identifies five areas where it alleges the company stifles competition. This includes super apps, cloud streaming game apps, messaging apps, smartwatches, and digital wallets. Apple has recently announced support for cloud-based gaming services and plans to introduce RCS cross-platform messaging later in the year. In response, the tech company stated that it innovates daily to create beloved technology. They emphasize seamless integration, privacy, security, and user experience. The company contends that the lawsuit challenges its identity and the principles that distinguish its products in highly competitive markets.

Do you think Apple should have lost the $113 billion?

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