Apple’s (NASDAQ:AAPL) operating system for iPads has been designated as a gatekeeper by EU antitrust regulators under the Digital Markets Act. The EU labeled the operating system as a gatekeeper as it is important to business users.
What Is a Gatekeeper?
The EU’s Digital Markets Act (DMA) has identified 22 services owned by tech giants like Apple, Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) as gatekeepers. A gatekeeper is a large platform offering core services, such as online search engines, app stores, and messenger services. The DMA stipulates that such gatekeepers must adhere to obligations and prohibitions outlined in the act.
Is Apple a Gatekeeper?
The EU antitrust chief commented that its market investigation showed that Apple’s iPadOS did not meet the DMA’s “threshold” but did constitute an “important gateway on which many companies rely to reach their customers.” Apple has six months to comply with the DMA.
Is Apple a Buy or Sell Now?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 17 Buys, 12 Holds, and two Sells. Year-to-date, AAPL has declined by more than 8%, and the average AAPL price target of $200.71 implies an upside potential of 14.7% from current levels.
