While the Department of Justice relentlessly pursues an antitrust lawsuit against Apple Inc., which could happen as early as March, some investors are preparing for potential damages to the company’s fortune. However, most of them are not concerned. After a report published on Wednesday confirmed months of rumors about an upcoming lawsuit regarding software and hardware restrictions on iPhones and iPads that impede competitive services, analysts, investors, and legal experts played a game called the “Silicon Valley parliament” to speculate on the impact of this case on Apple.
When it comes to assessing risks in both the short and long term, viewpoints vary greatly – from open fear to indifferent shrugs. “Apple should be concerned. My understanding is that [the upcoming lawsuit] relates to software, including Apple iMessage and the accusation of monopolizing their software as a service,” said Chris Mattmann, an expert in artificial intelligence and associate professor of research at the University of Southern California, in an interview. “Previous antitrust lawsuits against Apple focused mainly on hardware restrictions that Apple imposes on suppliers, as well as specific restrictions, including the creation of their own new AI/M2 chips.” Mattmann expects the potential decline in Apple’s stock price, especially in the context of government oversight over iMessage as part of the Department of Justice’s case. “There have been certain issues with [iMessage],” he said, and how Apple users, who use the Beeper developer’s app, cannot use iMessage on their Mac computers. But Mattmann may be in the minority. Analysts and investors, all familiar with the government’s actions against Apple and other tech giants in recent years, are focusing on the overall economic outlook and Apple’s performance. “Many of these issues have been going on for many years, as evidenced by the Epic Games lawsuit, actions in the EU, and rumors of the Department of Justice investigation. This is not particularly new to Wall Street,” said Yuri Khodjamirian, chief information officer at Tema ETFs, in an interview. He argues that the immediate concern for investors is Apple’s performance in past quarters and the forecasted 3% growth this year. However, Khodjamirian is not worried as he predicts a significant increase in iPhone sales based on his estimates of the replacement cycle of Apple’s existing installed base of 2 billion devices worldwide. Apple does not disclose detailed iPhone sales figures. This month, two analysts downgraded Apple’s stock, but at least one of them believes that the company’s shares could rise by almost 25%: BofA analyst Wamsi Mohan is optimistic about long-term iPhone sales, foreign exchange rate trends, and strength in various regions around the world. Read more: Apple shares could rise by almost 25%, says BofA, defying general skepticism. Speculations about Apple’s future come against the backdrop of the Supreme Court of the United States’ decision on January 16, which refused to hear an appeal in an antitrust lawsuit regarding Epic Games Inc.’s App Store policy, as well as a significant number of other legal disputes involving Apple. Apple won 99 out of 100 charges in federal court in 2021, but Judge Yvonne Gonzalez Rogers found that Apple violated California’s unfair competition law by restricting developers’ abilities to communicate with users outside the app or use alternative payment systems. Last year, the Ninth Circuit Court of Appeals upheld her overall decision, prompting both Apple and Epic to appeal to the Supreme Court. Read more: Appeals rejected in Apple-Epic antitrust lawsuit. Legal maneuverings have led Apple to introduce new regulations that impose a 27% fee on developers using alternative payment methods – just as the company did in South Korea and the Netherlands following similar court decisions in those countries. Epic CEO Tim Sweeney announced on the former Twitter platform that his company would oppose Apple’s new policies in the Northern District of California District Court in the United States. Sweeney referred to the tech giant’s approach to complying with the judge’s decision, which allows developers to direct customers to payment options within their own apps, as “acting in bad faith.” Spotify Technology stated in a press release that “Apple once again demonstrated that it will stop at nothing to protect the profits it gains on the backs of developers and consumers by using the App Store monopoly.” Spotify filed an antitrust complaint against Apple in Europe in 2019. Other companies, such as Beeper and Tile owned by Life360, a producer of competitive AirTags devices, have lodged similar complaints. Global legal troubles are piling up for Apple CEO Tim Cook and the company’s army of lawyers. The company was recently listed among the six firms considered “gatekeepers” under the Digital Markets Act in Europe, a law that imposes strict requirements for reducing anti-competitive behavior, which goes into effect on March 7. In addition to Apple, these are Alphabet Inc. (parent of Google), Amazon.com Inc., parent company of TikTok ByteDance, Meta Platforms Inc. (formerly Facebook), and Microsoft Corp. If companies fail to comply with the rules established by the Digital Markets Act, they may be fined up to 10% of their global annual turnover, and for repeated violations, up to 20%. European Commission.
FAQ:
1. What is the upcoming antitrust lawsuit against Apple about?
– The upcoming antitrust lawsuit relates to software, including Apple iMessage, and the accusation of monopolizing their software as a service. It will judge the impact of hardware restrictions on iPhones and iPads that impede competitive services.
2. What could be the consequences of the antitrust lawsuit for Apple?
– Some experts are concerned and predict a decline in Apple’s stock price. There is a risk that government oversight of iMessage could affect the company’s performance.
3. What are investors’ viewpoints on the antitrust lawsuit?
– Investors’ viewpoints vary. Some are concerned and worry about the negative effects of the lawsuit, while others are unconcerned and focus on the overall economic outlook and Apple’s performance.
4. What are the forecasts for iPhone sales?
– There is optimism about iPhone sales due to the replacement cycle of Apple’s existing installed base of 2 billion devices worldwide. A significant increase in sales is anticipated.
5. What are the antitrust complaints against Apple?
– Companies like Spotify, Beeper, and Tile have filed antitrust complaints against Apple. They accuse Apple of exploiting the App Store monopoly and limiting competition.
6. What are the global legal troubles facing Apple?
The source of the article is from the blog zaman.co.at