The Department of Justice (DOJ) has sued Apple (NASDAQ:AAPL), alleging that the company used its dominant position to block competitors from providing better services on its iPhone. As a result, Apple’s shares are trending nearly 3% lower today. This is the third time that Apple has been sued for antitrust violations by the DOJ in the last 14 years.
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The DOJ alleges that Apple’s practices resulted in elevated prices for consumers. The complaint, filed in a New Jersey Federal court, also alleges that Apple makes it difficult for consumers to switch to devices that don’t use Apple’s iOS.
An Epic Fight
The DOJ’s action follows the bitter feud between Epic Games and Apple. Epic has alleged that Apple forcing users to download apps exclusively via the iStore violates antitrust laws. The developer of Fortnite has also accused Apple of stifling competition by charging commissions to the tune of 30% on in-app purchases. Other names, including Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Spotify (NYSE:SPOT) have also joined Epic Games over Apple’s app store policies.
Apple, however, maintains that its control over app store downloads is necessary to keep its iPhones free from viruses and fraud, according to the Wall Street Journal. Last week, the company agreed to a $490 million settlement in a class-action lawsuit involving Apple’s concealment of a drop in iPhone demand in China.
Is Apple a Good Stock to Buy Right Now?
Apple’s share price has now plunged by around 9.2% so far this year. Analysts have a Moderate Buy consensus rating on the stock alongside an average AAPL price target of $204.86. This points to an 18.7% potential upside in the company’s share price.
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