Apple Loses Value Over Regulator Fears

This took the loss in the year so far to 11%. Apple is no longer the world’s most valuable company, with Microsoft (MSFT) now having a market capitalisation of over $3tn, while Apple has slipped under that figure to around $2.65tn.

Part of the reason for the recent fall is that nervousness has set in among investors over fears that regulators could hit the company with fines and also look to end the market-dominant position it has enjoyed for so long. This is now a threat on both sides of the Atlantic.

In the US, Apple is under fire for allegedly breaking antitrust laws, with the Justice Department and 16 attorneys general suing the company in a lawsuit filed in New Jersey on Thursday. They claim that the iPhone manufacturer prevents rival companies from accessing key software and hardware on the devices it sells.

Apple’s problems in Europe concern issues over whether it is complying with legislation such as the Digital Markets Act. Its fees and terms and conditions are among the areas being looked into more recently, with Spotify raising a complaint that caused a €1.84bn fine to be levied in Europe earlier in 2024.

Bill Kovacic is among the experts who have given their opinion on the current state of play. The antitrust professor at George Washington University Law School stated:

Even if they win, in an important way they’ve lost.