Apple (NASDAQ:AAPL) may be subject to a fine of up to €500 million ($539 million) from the European Union for allegedly breaching EU competition law, according to the Financial Times. The fine is likely to be announced next month.
The company is accused of using its App Store rules to favor its own music streaming service, Apple Music, over competitors. This reportedly prevented other music streaming services from informing users about alternative subscription options outside the App Store.
The EU’s investigation into Apple’s App Store practices stems from a complaint filed by Spotify Technology (SPOT) in 2019. According to SPOT, Apple’s monopoly on the App Store has put competing music streaming services at a disadvantage, compelling them to increase subscription prices.
Is Apple a Buy or Sell Now?
The company is expected to deal with several regulatory probes in 2024. The company is at significant risk of facing an antitrust lawsuit from the U.S. Justice Department. This lawsuit could target its devices and services, including the Apple Watch, iMessage service, and Apple Pay. Nevertheless, AAPL’s strong brand name, loyal customer base, and expanding adoption of artificial intelligence (AI) capabilities remain key growth catalysts.
Overall, analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 16 Buys, eight Holds, and one Sell. The average AAPL price target of $206.68 implies an upside potential of 13.4% at current levels.
