The U.S. Department of Justice will sue Apple Inc. (NASDAQ: AAPL) for anti-competitive practices. The suit will say that Apple has blocked several competitors from using its hardware and software to promote their productions. And it will have an impact on Apple stock.
According to Bloomberg, “The coming case will mark the third time that the Justice Department has sued Apple for antitrust violations in the past 14 years, but it is the first case accusing the iPhone maker of illegally maintaining its dominant position.” The European Union also just fined Apple approximately $3 billion for anti-competitive behavior against companies that are rivals to its streaming business.
Government action is not Apple’s only problem. Meta, Microsoft, X, and Match Group have taken the iPhone maker to court because it has not honored a deal to open Apple’s app store to their products. According to CNN, “The filing accuses Apple of willfully circumventing the spirit of the original order, which was designed to unlock competition by forcing Apple to let app makers communicate with their users about deals and promotions in specific ways.”
Add these headwinds to what appear to be slow iPhone sales in China and worries that the company lags competition in delivering AI to customers, and Apple stock may be under pressure for months, if not longer. (Here are five reasons to avoid Apple products today.)
The company’s turnaround options have narrowed quickly. Apple stock reflects that, as it is down 7% this year, while the S&P 500 is 10% higher. The only possibility of a Wall Street change in sentiment is probably a successful launch of the iPhone 16, and that does not happen until September.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
The post Apple Stock Could Be Beaten Down by Federal Lawsuit appeared first on 24/7 Wall St..
Click this link for the original source of this article.
Author: Douglas A. McIntyre
This content is courtesy of, and owned and copyrighted by, https://247wallst.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.