Apple (NASDAQ: AAPL) shares dropped by 0.4% on Friday, closing at $181.18, following reports from The New York Times that the US Justice Department is nearing filing an antitrust case against the company.
The New York Times has reported that the Justice Department is reaching the final stages of its investigation into tech giant Apple (NASDAQ: AAPL). Sources suggest that the agency may soon file a comprehensive antitrust case against Apple, focusing on its tactics to maintain the dominance of the iPhone in the market. This move could happen as early as the first half of this year.
According to sources, the investigation is focused on how Apple leverages its control over hardware and software. The agency aims to understand how Apple’s practices make it challenging for consumers to switch away from Apple devices and impede competitors from entering the market.
The investigation also delves into Apple’s strategies, such as restricting competitors’ access to the iMessage service, and scrutinizes the company’s iPhone payments system, which allegedly hampers other financial firms from providing similar services.
Bloomberg Intelligence analyst Anurag Rana noted that a potential antitrust lawsuit against Apple “could compound the company’s challenges, including slowing iPhone sales and patent issues related to Apple Watch.” Rana suggested that the legal action might specifically target Apple’s business model, which revolves around the close integration of its devices and services.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
