Apple Is Facing Multiple Lawsuits And Enforcement Actions

Apple May Surprise Investors. Analysts Advise Caution

The investigation into whether Apple has a monopoly power that it is abusing has intensified in recent months.

An investigation

The Department of Justice is launching a sweeping antitrust investigation to see if dominant tech companies are unlawfully stifling competition.

The review aims to examine the practices of online platforms that dominate online search, social media and retail services.

 An investigation into whether Apple has monopoly power. The Department of Justice's investigation is partly about Apple's policies regarding third-party mobile software on its devices, which has been the focus of most criticism of Apple's competing practices.

The department is also investigating whether Apple's mobile operating system, iOS, is operating in an anti-competitive manner, favoring its own products over those of third-party developers.

The current steps taken by the department would allow the lawsuit to be filed as early as spring, but the process could be delayed or the government may still choose not to pursue legal action.

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Objective of criticism

Apple's rules on its App Store have been the target of critics and government regulators around the world, who have scrutinized whether its power over pricing and distribution of third-party software on mobile devices hurts competition. The Justice Department's investigation, however, is broader than the App Store and is looking into whether Apple used its operating system to favor its own products, including hardware, said people familiar with the investigation. By blocking access to iOS, Apple makes the iPhone stickier and discourages users from switching to Android phones.

In the iOS update introduced in 2019, Apple updated its Find My tracking app, which made the company more competitive with Tile. As part of the update, Apple has started asking users if they want to allow Tile devices to track them. Apple's Find My app comes pre-installed on iPhones and doesn't constantly ask for permission to track users. Apple said there are privacy differences between its Find My service and its Tile service.

A number of Apple products are integrated with the operating system in a way that competitors do not. These include iMessage, which Android users don't have access to, and AirPods, branded headphones with unique pop-ups and other perks that make them easier to use.

Some competitors argue that integration creates an unfair advantage. Apple claims that the close coupling of hardware and software is a unique feature of its products.

New law of the European Union and Apple

A new European Union law, called the Digital Markets Act, aims to restrict tech companies like Apple from taking advantage of their presence in digital marketplaces like Apple's App Store for iPhone and iPad.

The new law, known as the Digital Markets Act, is part of the biggest proposed expansion of global technology regulation in decades. It aims to impose new obligations and bans on a small group of digital giants, whom the European Union defines as watchdogs - backed by fines for non-compliance that could run up to tens of billions of dollars based on early draft legislation. Legislation, commonly, can affect many corners of the tech world. Its purpose is to generally limit the ability of major tech companies to benefit from their strong presence in digital markets.

Apple has made efforts to address a new European law that will start to be enforced in 2024. Apple has begun investigating internally how to allow competing app stores and third-party software to be loaded onto the iPhone and iPad in a process known as sideloading .

Apple share price

Apple shares at the end of last year and the beginning of this year reached the lowest level, which was last recorded in 2021. The share price at the beginning of the year was at 125.07, and now it is more than twice as high at 155.28.

Apple Is Facing Multiple Lawsuits And Enforcement Actions - 1

Source: wsj.com, finance.yahoo.com

Apple May Surprise Investors. Analysts Advise Caution

Kamila Szypuła

Writer

Kamila has a bachelors degree in economics and a master's degree in finance and accounting, specializing in banking and financial consulting

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