Apple (NASDAQ:AAPL) suffered a setback on Friday after its bid to dismiss a UK lawsuit was rejected. This lawsuit was valued at $1 billion. The judge ruled that the tech giant must face the allegations of charging over 1,500 UK developers unfair commission fees of up to 30% on app purchases and other content.
Moreover, the suit alleges that the company has abused its market dominance when it comes to the distribution of apps on iPhones and other Apple devices.
The Cupertino-based giant is facing rising pressure from regulators in the U.S. and Europe over the app store fees that it charges third-party developers. The company says 85% of developers on its App Store do not pay any commissions.
Furthermore, Apple is also battling another case in the UK over defective iPhone batteries for 24 million iPhone users.
Is Apple a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 16 Buys, 10 Holds, and one Sell. Year-to-date, AAPL has declined by more than 5%, and the average AAPL price target of $202.76 implies an upside potential of 14.7% from current levels.
