Apple (NASDAQ:AAPL) and Epic Games courtroom drama continues. In the latest turn of events, Epic Games, the developer of the popular video game Fortnite, requested a federal judge hold Apple in contempt of court. Epic Games has accused Apple of failing to comply with a previous court order mandating AAPL to open its App Store to third-party payment options. Apple stock declined 1.2% in Wednesday’s trading session.
A legal battle has been ongoing between the companies since 2020. Epic alleged that Apple violated antitrust laws by making users download apps exclusively through its App Store. Also, AAPL has been accused of stifling competition by charging app developers commissions of up to 30% on in-app purchases.
Latest Accusations
As per a ruling in 2021, Apple was asked to allow developers to provide links that could direct consumers to alternative payment methods. However, Epic Games contends that Apple’s imposition of a 27% fee on most digital transactions and its introduction of new regulations make these links commercially ineffective.
Additionally, it claims that Apple’s guidelines continue to discourage developers from promoting the use of external purchasing options.
Is Apple Expected to Go Up?
A slowdown in iPhone sales in China and ongoing legal challenges keep analysts cautiously optimistic about the stock. Apple has received 16 Buys, nine Holds, and one Sell recommendation for a Moderate Buy consensus rating. Analysts’ average price target on AAPL stock of $204.86 implies a 19.71% upside potential from current levels.
