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Apple (NASDAQ:AAPL) Stock: Legal Threat Looms
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Apple (NASDAQ:AAPL) Stock: Legal Threat Looms

Story Highlights

The Justice Department has reportedly accelerated the investigation into Apple’s anticompetitive practices. The tech giant may face a lawsuit in the next few months, in case the government decides to take legal action on the matter.

The U.S. Department of Justice has paced up its antitrust investigation into Apple (NASDAQ:AAPL) in recent months, according to a WSJ report. The regulator is said to have assigned more litigators to expedite the investigation process.

One of the key matters of the investigation is related to Apple’s policies for third-party apps on its devices. Additionally, the DoJ is looking into whether the company’s operating system is designed to prioritize its own products over those created by outside developers.

The investigation, which began in 2019, is expected to be completed by this spring if it continues at an accelerated pace. The report also mentioned that there might be a delay in the process or that the government may decide not to take legal action altogether.

The tech giant’s policies have recently been questioned in several other countries, such as the UK, Japan, and Germany, among others.

A similar investigation resulted in new European legislation that requires companies like Apple to allow downloads from other platforms on iPhones and iPads. Basically, app developers will be able to offer apps for Apple products without paying the 15% to 30% listing fees on the Apple Store. 

Is It Good to Invest in Apple?

Billionaire Warren Buffett certainly believes that Apple stock is worth investing in. The latest 13F filing of Berkshire Hathaway (BRK.A) (BRK.B) shows that it increased its stake in the stock to 915.6 million shares from 907.6 million previously.

Furthermore, Apple appears to be one of the stocks strongly favored by analysts. On TipRanks, AAPL stock has a Strong Buy consensus rating based on 25 Buy and five Hold recommendations. The average price target of $172.71 implies 11.19% upside potential.

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