Apple loses $113 billion in value due to US law investigation

Apple is embroiled in legal battles as the US Department of Justice and 15 states have filed lawsuits, alleging that the tech giant monopolized the smartphone market, harming smaller competitors and inflating prices. With this lawsuit, Apple is added to the list of competitors facing regulatory scrutiny, including Alphabet's Google, Meta Platforms, and Amazon.com. Attorney General Merrick Garland emphasized, 'Consumers shouldn't bear higher prices due to antitrust violations. If unchecked, Apple's smartphone monopoly will only grow stronger.' Additionally, Apple is under investigation in Europe regarding compliance with the Digital Markets Act.

Impact on Apple's Shares:

Following the legal actions, Apple's shares saw a sudden fall of 4.1%, wiping out approximately $113 billion in market capitalization and bringing its year-to-date loss to 11%. Being valued at $3 trillion which makes Apple the world's most valuable company, Apple's performance in 2024 has lagged behind both on the Nasdaq 100 and the S&P 500 which are the stock market index of the US.

US Lawsuit Allegations:

The US lawsuit accuses Apple of impeding rivals' access to hardware and software features on its popular devices. Meanwhile, potential investigations in Europe will scrutinize the company's new fees, terms, and conditions for app store developers.

Apple's Response to the US Lawsuit:

Apple has quickly responded to the US lawsuit, denouncing it as 'inaccurate in facts and law' and warning of its potential to establish a troubling precedent, allowing excessive governmental intervention in technological innovation. The company remained silent on potential European probes but pledged to vigorously defend itself against the lawsuit.

Apple's Statement:

In their defence, Apple emphasized its commitment to innovation, user experience, privacy, and security. The company stated, 'At Apple, we strive every day to craft technology that users adore — creating seamless product integration, safeguarding privacy, and delivering a magical user experience. This lawsuit jeopardizes our core values and the distinctiveness that sets Apple products apart in fiercely competitive markets.'