Apple has been in the focus of both European and North American regulators since this week, and due to the pressure of antitrust laws, it has once again fallen to second place as the most valuable company in the world. below the winner with Artificial Intelligence (AI) Microsoft, at least at the close of the New York stock market last Thursday the 21st. That day Apple It lost no less than 113,000 million dollars (104,349 million euros) on the stock market, a 4.1 drop in its shares. Apple this week has been the most bitten apple than ever and the one that has been on everyone’s lips the most.
The regulatory action of both Brussels and the US Department of Justice on the Cupertino giant, in California, is disconcerting the company’s investorswho fear that this regulatory pressure will end in large fines and that it will drag the company down until it is forced to permanently abandon its first place in the Olympus of the most valuable companies.
In the USA he is going to have to face Justice and 16 attorneys general who have sued the emblematic company founded by Steve Jobs and Steve Wozniak and now directed by Tim Cook for violating US antitrust laws. Meanwhile, in Europe, the company is being investigated for similar reasons, for allegedly failing to comply with the EU Digital Markets Lawwhich came into force on March 6.
APPLE LOSES VALUE AND PODIUM
The consequence of being under the spotlight of regulators is its fall in the stock market. this past Thursday, March 21, in which its shares have fallen 4.1% at once, and have caused it to lose a total of 113,000 million dollars in market value, which translates into a percentage of 11% to so far in 2024. This is painful in the case of the only company in the world that at one point reached a value of more than 3 billion dollars (this Friday its value was 2.65 billion dollars).
Suppressing competitors in each and every one of its products and services is not new for Apple, and that is why it has practically its entire history facing all kinds of accusations as a “bully” who enriches herself at the expense of nullifying the competition. Their products, although always expensive, are very popular, increasingly so, and are iconic throughout the world, to the point of being part of the daily lives of millions of citizens globally. That is why the authorities have become more incisive and scrutinize their power.
The fall in shares this Thursday was almost an immediate consequence of the filing that same day of the lawsuit in the United States filed in a federal court in the State of New Jersey. In the judicial act Apple is accused of preventing rivals from accessing hardware and software features of its popular devices.
Apple understands that the way of thinking and regulating in Europe is different, and it seems to be abiding by it. Here there is a law agreed upon by 27 countries, and I could not receive an accusation of interference so lightly.
This is exactly where the shots of the investigations that it also faces in Europe are going, which point to Google (Apple’s rival, although it is now trying to join together so as not to lose the third in the Artificial Intelligence business). In Brussels the accusations focus on the problems that the company poses to the developers of its application store regarding new rates, terms and conditions.
Analysts and experts point out that it has all the logic that The avalanche of cases and the scrutiny that accompanies them become a real drag on the way these tech giants operate, because even if they won in court, ultimately, they would lose..
SUED FOR CANCELING HER RIVALS
The lawsuit alleges that the apple company has used its power over iPhone app distribution to thwart innovations that would have made it easier for consumers to switch phones.and which has refused to support cross-platform messaging apps, limited third-party digital wallets and non-Apple smartwatches, and has blocked mobile cloud streaming services.
For North American Justice There are five examples of technology in which Apple destroys its competition; super apps, cloud gaming apps, messaging apps, smart watches and digital wallets. Thank goodness that the iPhone maker has recently opened its hand and recently offered support for cloud-based gaming services and is going to incorporate cross-platform messaging later this year.
just received a €1.8 billion ($2 billion) fine from the European Union for preventing music streaming apps from informing users about cheaper deals
Of course Apple has tried to defend itself, and has described the lawsuit in the USA as “wrong from the point of view of the facts and the law.”. “This is going to set a dangerous precedent, empowering the Government to take a heavy hand in the design of popular technology.” Also He promised to “defend himself vigorously against it”.
They also emphasize that the multinational innovates “every day to make people love technology: we design products that work perfectly together, protect people’s privacy and security, and create a magical experience for our users,” so This lawsuit “threatens who we are and the principles that distinguish Apple products in fiercely competitive markets.”
However, he understands that the way of thinking and regulating in Europe is different, and it seems that he is complying with it, because he has not commented at all on the same accusations that he has received in the old continent. Here there is a law agreed upon by 27 countries, and I could not receive an accusation of interference so lightly.
This lawsuit “threatens who we are and the principles that distinguish Apple products in fiercely competitive markets.”
The Digital Markets Act, which sets out a series of do’s and don’ts for some of the world’s largest technology platforms, allows the European Commission to impose heavy penalties of up to 10% of a company’s total annual global revenue, and up to 20% for companies that repeatedly flout the rules. After launching formal investigations into Apple, as well as Alphabet Inc.’s Google, regulators aim to make their final decisions within 12 months.
Apple in Europe complies because it has no choice. It is worth remembering that just received a €1.8 billion ($2 billion) fine from the European Union for preventing music streaming apps from informing users about cheaper dealshas been under intense scrutiny since the DMA went into full effect on March 7.