Apple Shares Dip Almost 4% Amid DOJ Lawsuit Allegations

Key Takeaways

  • Apple's stock fell nearly 4% amid a DOJ lawsuit alleging anti-competitive practices.
  • The legal challenge is part of a broader effort by the Biden Administration to curb the power of Big Tech.
  • Apple contends the lawsuit could hinder innovation and sets a dangerous precedent for technology design and regulation.

Apple’s stock value dropped nearly 4% on March 21 following a lawsuit filed by the Justice Department in the US District Court in New Jersey.

The lawsuit accused the tech giant of engaging in anti-competitive practices within the smartphone market.

At press time, the share price plummeted by 3.7%, hovering around $172 each, contributing to a year-to-date decline of nearly 7%.

Apple shares
Apple shares price | Source: Yahoo Finance

The complaint emphasized how Apple’s actions solidified its dominance in the smartphone realm, negatively affecting users, developers, and third parties.

In addition to the Justice Department, over a dozen state attorneys general joined the chorus, citing Apple’s anti-competitive behavior in its products, advertising, and news sectors.

Apple’s iPhone business, approaching a $300 billion annualized run rate, drew scrutiny for allegedly impeding the growth of apps facilitating smartphone switches, among other accusations.

This legal action aligns with the Biden Administration’s broader agenda to address the influence of major tech players, following similar moves against Google, Amazon, and Meta.

In response, Apple staunchly defended its position, arguing that the lawsuit jeopardizes innovation and sets a troubling precedent, vowing a robust defense against the allegations.