This brought its year-to-date loss above 11%. Despite previously achieving the status of the most valuable company in the world.
Regulators in both Europe and the United States are stepping up their scrutiny on Appleraising concerns among investors about possible fines and the impact on the company’s dominance in the market.
As reported Ambitthe Department of Justice and 16 attorneys general filed lawsuits against the iPhone maker, accusing him of violating antitrust laws. Meanwhile, in Europe, the company is rumored to be under investigation to determine whether it is complying with the region’s Digital Markets Act.
In this context, Apple shares fell 4% in the previous session. It is worth remembering that on August 4, 2023 they fell 4.8%. This adds to the drop accumulated in the last month of -5.8%, while investors perceive that the firm is falling behind in the artificial intelligence race. This Friday, it extends the red, but moderates the fall with -0.4% before the market opening.
These regulatory actions dealt a very hard blow to Apple, which saw approximately $115 billion in market value go up in smoke. This brought its year-to-date loss above 11%.. Despite previously achieving the status of the world’s most valuable company, With a value of more than US$3 billion, Apple, It now underperforms both the Nasdaq 100 and the S&P 500 in 2024.
Apple: ranking by marketcap
However, for now, it still retains the number two position in the ranking of the most valuable companies in the world by market capitalization. Only surpassed by Microsoft and pursued by the Riyadh oil company, Saudi Aramco.
The long-awaited lawsuit, filed in the United States District Court for the District of New Jerseycomes after years of accusations from critics that Apple has harmed competition with restrictive terms in its App Store, high fees and its “walled garden” approach to its hardware and software.
Apple is famous for making its technology easy to use, but it does that by closely monitoring, and in some cases, restricting how third-party companies can interact with the tech giant’s products and services. In some cases, the Apple firm can give its own products better access and features than its competitors.
The company said it denied the lawsuit’s allegations and would appeal them, adding that the lawsuit could empower the government “to take a heavy hand in the design of people’s technology.”
Source: Ambito
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