U.S. Department of Justice Launches Antitrust Lawsuit:
On March 21, U.S. Attorney General Merrick Garland announced that the Department of Justice, in conjunction with several state Attorneys General, has filed an antitrust lawsuit against Apple Inc. The lawsuit claims that Apple has monopolized the mobile market through its control over hardware and software, harming the interests of consumers, developers, and competitors.
Apple's Stock Price Plummets:
This news led to a sharp decline in Apple's stock price on March 21, marking its largest single-day drop since August 4, 2023. The company's market value evaporated by over $110 billion overnight, with a 4.1% decrease, expanding this year's cumulative decline to 11%.
Judicial Investigation Exposes Apple's "Apple Tax" Monopoly:
The Department of Justice and 16 state Attorneys General filed a lawsuit in a federal court in New Jersey, accusing Apple's anti-competitive behavior of exceeding its normal business scope. Garland highlighted in a press conference that the Supreme Court defines monopolistic activity as "actions that control prices or exclude competition," and did not rule out the possibility of splitting the company to resolve the case.
An investigation by the House of Representatives in 2020 confirmed that Apple monopolized iPhone's software distribution business by imposing an "Apple Tax," from which it profited immensely. Thursday's lawsuit indicates that the U.S. government's five-year investigation into Apple has reached its climax.
EU Joins Antitrust Action:
Meanwhile, European regulatory authorities have also joined the antitrust action against Apple. Margrethe Vestager, the Executive Vice President of the European Commission and competition commissioner, stated that the EU had imposed a fine of 1.8 billion euros on Apple on March 4 for monopolistic practices in the streaming music business. The EU's antitrust action against Apple is intensifying.
Apple Responds to Antitrust Allegations:
Apple issued a statement claiming that the lawsuit is unfounded from both factual and legal perspectives. Apple emphasized its continuous innovation, commitment to creating technology loved by people, and warned that this lawsuit could set a dangerous precedent, allowing excessive government intervention in technology design.
The market is also concerned about the imminent actions the EU is expected to take against Apple and Google, which could lead to comprehensive investigations and severe penalties for both companies.
