Technology giant Apple (NASDAQ:AAPL) appears to have yielded to pressures from European regulators on allowing third-party application stores on its devices. The change, driven by the European Union’s Digital Markets Act, is expected to take effect in 2024.
Indeed, a 10-K form filed to the U.S. Securities and Exchange Commission indicates that the company has adjusted its risk factors to include third-party developers and other Apple store risks.
According to Morgan Stanley analysts led by Erik Woodring, the revised language in the 10-K form validates the impending third-party access, saying Apple “will probably begin 3rd party app stores on devices in Europe.”
Apple has previously argued against allowing third-party stores, as the changes would adversely affect its commission on App Store sales and, ultimately, its operations and revenue. However, considering recent developments, it appears the company has given up the fight.
Meanwhile, another regulatory hurdle against Apple surfaced after the U.S. Consumer Financial Protection Bureau proposed that companies offering digital wallets and payments would fall under its supervision. If the proposal becomes a reality, nonbanks would be treated like their traditional counterparts. According to the agency, the change is needed to offer more protection to users who utilize these digital wallets and payments.
What is the Price Target for Apple?
With 15 Buy and eight Hold ratings, AAPL commands a Moderate Buy consensus rating on TipRanks. The average Apple price target of $202.91 implies 11.45% upside potential from current levels. Meanwhile, AAPL stock has gained 46.20% so far this year.
