The US Department of Justice has filed a lawsuit against the iPhone manufacturer on charges of violating antitrust laws, while the EU is preparing an investigation regarding the non-compliance with the Digital Markets Act.
As Bloomberg notes, on Thursday, Apple's shares fell by 4.1%, reducing the company's market value by approximately $113 billion. At the beginning of 2024, the iPhone manufacturer was the most expensive company in the world with a market capitalization above $3 trillion.
Apple is no stranger to regulators - it has been accused for many years of enriching itself by stifling competitors. However, the company has become increasingly popular over the years, leading authorities to become more aggressive and wary of its power.
The American lawsuit, filed on Thursday in federal court in New Jersey, accuses Apple of blocking competitors' access to hardware and software functions on its devices. Potential investigations in Europe will focus on the company's new commissions, terms, and conditions for developers of alternative app stores.
Apple responded to the US lawsuit, calling it "incorrect in terms of facts and law," and promising to "vigorously defend itself."
The US lawsuit alleges that Apple used its power over the distribution of programs on the iPhone to hinder innovations that would make it easier for consumers to customize their phones. According to the Department of Justice, the company refused to support cross-platform messaging apps, restricted third-party digital wallets and smartwatches, and blocked mobile cloud streaming services.
The EU's Digital Markets Act, which contains a number of prohibitions for some of the largest technology platforms in the world, allows significant fines to be imposed on them up to 10% of the company's total annual global revenue and up to 20% for companies that repeatedly violate the rules. After the start of official investigations into Apple and Alphabet, regulators promised to provide their final decisions within 12 months.
Apple only recently received a fine of almost $2 billion from the EU following a complaint from Spotify about blocking the ability for third-party music streaming programs to inform users of cheaper offers.
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