Apple (NASDAQ:AAPL) suffered a major setback as the European Commission fined the tech giant €1.8 billion (or $1.95 billion) for preventing music streaming services like Spotify (NYSE:SPOT) from informing users of different payment options outside its App Store.
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Spotify filed a complaint with the EU in 2019 about Apple stifling music streaming services through this restriction and its stringent 30% App Store fees.
The EU antitrust authority deemed Apple’s restrictions unfair and added a €1.8 billion deterrent to the basic amount for hindering competition in music streaming. The EU Commission did not disclose the basic amount. EU antitrust chief Margrethe Vestager stated that Apple had abused its decade-long market dominance and alleged that it restricted developers from promoting alternative, cheaper music services outside its ecosystem, violating EU antitrust rules.
Apple plans to challenge the decision, citing a lack of evidence of consumer harm.
Is AAPL a Buy?
Meanwhile, Goldman Sachs removed Apple from its top buys list due to stock underperformance and concerns over weak product demand. Year-to-date, AAPL stock has declined by 3.2%, while the S&P500 index (SPY) has gained by more than 8% in the same period.
However, Goldman Sachs analyst Michael Ng maintained a Buy rating on Apple, emphasizing the strength of its ecosystem despite concerns over slowing product revenue growth.
Overall, analysts remain cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 15 Buys, nine Holds, and one Sell. The average AAPL price target of $205.03 implies an upside potential of 14.1% at current levels.
