Tech giants Apple (AAPL) and Meta Platforms (META) have recently disagreed over a provision in the European Union’s Digital Markets Act (DMA), which permits competitors or third-party developers to request interoperability for hardware and software. According to this rule, Apple is required to allow its systems or software to share information with the requesting party upon receiving such requests.
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The DMA, which took effect last year, aims to curb anti-competitive behavior by major tech companies. AAPL is at risk of facing its first-ever penalty levied under the Act due to concerns over its app store policies.
AAPL Cites Concern Over User Privacy
It must be noted that Meta has submitted 15 interoperability requests to Apple, seeking access to various functions, such as iPhone mirroring and cross-device connectivity. However, AAPL argues that these requests could compromise user privacy and security.
Apple stated that granting all of Meta’s requests would allow the company to access private user data, including messages, emails, photos, and passwords, through platforms like Facebook, Instagram, and WhatsApp.
In response, Meta said that Apple has repeatedly used privacy concerns to defend its anti-competitive practices. Further, Meta argued that interoperability would benefit consumers by allowing for greater choice and competition.
EU Puts Further Pressure on Apple
The regulator is reviewing the interoperability requests and evaluating measures to ensure compliance with the DMA. However, the European Commission’s preliminary findings suggest that Apple may need to further open up to its rivals and app developers.
On Wednesday, the commission told AAPL to make iOS more compatible with devices from other manufacturers, such as smartwatches, earbuds, and headsets. The regulator also asked Apple to let users easily connect devices from other brands, such as smartwatches and headphones, to their Apple devices.
What Is the Price Target for AAPL?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 20 Buys, nine Holds, and two Sells assigned in the last three months. At $243.72, the average Apple price target implies a 1.75% downside potential. Shares of the company have gained about 30% year-to-date.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, META stock has a Strong Buy consensus rating based on 40 Buys, three Holds, and one Sell assigned in the last three months. At $666.21, the average Meta price target implies an 11.56% upside potential. Shares of the company have gained 69.2% year-to-date.
