Apple (AAPL) has requested a U.S. district judge to dismiss the U.S. Department of Justice’s (DOJ) antitrust lawsuit, which accuses the tech giant of monopolistic practices in the smartphone market, Reuters reported. The lawsuit, filed in March, claims that Apple uses its market power to stifle competition and limit consumer choice.
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Specifically, the DOJ alleged that Apple blocks rivals from accessing key hardware and software features on iPhones and iPads. In response, Apple argued that the allegations are speculative and lack evidence of monopoly power. Further, the company said that it has the right to choose its business partners and is not legally required to support competitors. Also, AAPL claimed that it provides developers with sufficient access to its platform.
Investors should be aware that a ruling in favor of the DOJ could lead to increased scrutiny of Apple’s business practices and potentially force significant changes to its operations.
DOJ Case Highlights Growing Scrutiny of Tech Giants
The DOJ’s lawsuit is part of a broader trend of increased antitrust scrutiny on tech giants like Alphabet’s (GOOGL) Google and Meta Platforms (META). For instance, Google is facing its own antitrust lawsuits over its dominance in the online search. In the latest development, the DOJ is expected to push Google to divest its Chrome browser.
Similarly, Meta was accused of limiting third-party app developers’ access to the Facebook platform to hurt competition, but a judge dismissed these claims last week. Apple cited this ruling in its own case, arguing that limiting access to technology shouldn’t be considered unfair competition.
Is Apple Stock a Buy, Sell, or Hold?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 24 Buys, eight Holds, and two Sells assigned in the last three months. At $245.06, the average Apple price target implies a 7.01% upside potential. Shares of the company have gained 19.5% year-to-date.
