Regulatory Storm: Apple Faces Legal Challenges in 2024

January 02, 2024 – In the coming months, regulatory authorities in the United States and the European Union are gearing up to implement a series of decisions that could lead to legal ramifications for Apple in 2024, impacting its service business with an annual revenue of $85 billion.

Antitrust Investigation against Google

Reports reveal that Google paid over $26 billion to Apple in 2021, securing Google Search as the default search engine on Apple devices.

According to independent analyst Eric Seufert, these payments constitute a quarter of Apple’s annual revenue from its service sector.

Should Google lose the case, it would cease payments to Apple, resulting in significant financial repercussions.

App Store Scrutiny

The United States, European Union, and Japan have intensified scrutiny on Apple’s App Store. To comply with new EU regulations, Apple reluctantly allowed sideloading, permitting the operation of third-party app stores.

If these adjustments take effect, it is bound to impact App Store revenue, rendering the enforcement of the 30% commission less effective.

Jonathan Kanter, head of the antitrust division at the U.S. Department of Justice, has consistently expressed the intention to sue major U.S. companies.

His department has long been investigating Apple’s App Store policies, and now with full force, there is a possibility of legal action against Apple.

Investors’ Dilemma

For investors, the uncertainty surrounding these legal and regulatory actions poses a challenge in assessing potential risks for Apple’s business.

Gene Munster, managing partner at Deepwater Asset Management, suggests that investors should carefully monitor these developments.

The Supreme Court is set to review a case related to App Store policies, adding another layer of challenges for Apple.

Apple Raises Subscription Prices

As long as users are willing to pay for services, Apple will continue to expand and drive the growth of its service business. Recently, Apple raised subscription prices across Canada and other regions.

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