The US Justice Department is poised to initiate legal proceedings against Apple, with reports suggesting that a lawsuit could be filed as soon as Thursday. As per Bloomberg, the lawsuit alleges that Apple violated antitrust laws by obstructing competitors’ access to crucial hardware and software features of its renowned iPhone. This action signifies a notable escalation in the Biden administration’s ongoing antitrust crackdown on major US technology companies.
This forthcoming lawsuit against Apple represents another front in the Justice Department’s antitrust battles against prominent tech giants such as Google, Meta Platforms Inc., and Amazon.com Inc. Sources familiar with the matter indicate that the lawsuit is slated to be filed in federal court, although neither Apple nor the Justice Department has officially commented on the impending legal action.
News of the imminent lawsuit has already impacted Apple’s stock performance, with shares dropping by as much as 1.4 per cent to $176.10 in late trading. This decline compounds the challenges facing Apple, as its shares had already experienced a 7.2 per cent year-to-date decrease as of the close of trading on Wednesday.
The anticipated legal action would mark the third instance in the past 14 years that Apple has faced legal challenges from the Justice Department regarding alleged antitrust violations. However, it notably differs from previous cases as it represents the first time the company is accused of unlawfully preserving its dominant market position.
In addition to the heightened scrutiny from US authorities, Apple is also contending with increased regulatory pressure in Europe over alleged anticompetitive practices. Earlier this month, the company was fined €1.8 billion for purportedly stifling competition by preventing music streaming competitors from offering discounted deals.
The convergence of impending legal action in the US and heightened regulatory scrutiny in Europe underscores the intensifying regulatory challenges confronting Apple on both sides of the Atlantic.
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