US Justice Department to sue Apple - Bloomberg
Illustrative photo (getty images)
The US Department of Justice is preparing to sue Apple Inc. on Thursday, accusing it of violating antitrust laws by blocking competitors' access to hardware and software functions of the iPhone, informs Bloomberg.
Against the backdrop of this news, Apple's shares fell by 1.4% to $176.10 at the end of trading. By the close on Wednesday, they had fallen by 7.2%.
The upcoming case will be the third instance in the last 14 years that the US Department of Justice has sued Apple for antitrust violations, but it's the first case where the iPhone manufacturer is accused of unlawfully maintaining its dominant position.
The lawsuit is being filed at a time when Apple is also coming under increasing scrutiny in Europe due to alleged anti-competitive behavior. This month, the company was fined €1.8 billion for preventing music streaming competitors from offering cheaper deals. Apple has appealed the fine, stating that regulators failed to find any "credible evidence of consumer harm."
Meanwhile, the company may face a full-scale investigation under the new EU regulations for large tech firms — the Digital Markets Act — which came into effect earlier this month. Competitors criticize the new rules of the App Store, which have come into effect in Europe, complaining that the changes could lead to price increases for developers. Penalties for non-compliance with the new EU rules could be severe – up to 10% of the company's annual global revenue or up to 20% for repeat violations.
It is worth noting that recently the CEO of Apple announced plans to release its own developments in the field of generative AI by the end of 2024.
According to the latest leaks from sources in Asia, it is anticipated that next year's iPhone 17 may be released with an improved anti-glare display, promising to be more scratch-resistant than the Apple Ceramic Shield used in the iPhone 15.
