Apple Inc. is facing increased scrutiny from regulators in the US and Europe, leading to concerns among investors and a significant drop in the company’s market value.
In the US, the Justice Department and 16 attorneys general are suing Apple for alleged antitrust violations. Meanwhile, in Europe, Apple is under investigation for potential violations of the Digital Markets Act.
Following these developments, Apple’s stock price fell by 4.1% on Thursday, resulting in a loss of approximately $113 billion in market value. This has contributed to an overall year-to-date loss of 11% for the company, which was once valued at over $3 trillion.
This is not the first time Apple has faced regulatory scrutiny. Over the years, the company has been accused of stifling competition to enrich itself. However, as Apple’s products have become increasingly popular, regulators have become more aggressive in their investigations.
The US lawsuit alleges that Apple has restricted competitors’ access to hardware and software features on its devices. In Europe, the focus is on Apple’s new fees and terms for app developers.
Apple has responded to the US lawsuit, calling it “wrong on the facts and the law.” The company warns that such actions could set a dangerous precedent and interfere with technology design. However, it has not commented on the potential European probes.
The Digital Markets Act in Europe allows regulators to impose significant penalties on tech giants like Apple. The company is already facing a €1.8 billion fine for blocking music streaming apps from offering cheaper deals.
Despite these challenges, Apple remains committed to innovation and providing users with seamless, secure, and privacy-focused products. However, the regulatory scrutiny poses a threat to the company’s principles and competitive position in the market.
