Categories LATEST, Technology

Fresh trouble for Apple after adverse court ruling in App Store case

Apple (Nasdaq: AAPL) suffered a fresh setback Monday after the Supreme Court issued an order allowing a group of petitioners to move ahead with their antitrust case against App Store, the tech giant’s digital market place. The company’s stock was down 5% in early trading Monday following the news.

The plaintiffs, iPhone users irked by the company’s commission policy, in their lawsuit had alleged that the commission on sales done through App Store was passed on to customers in an unfair manner. They also accused the company of using its monopoly power.

Issuing the order, the court quashed the petition filed by the company seeking a favorable ruling in the case, arguing that such a lawsuit could only be filed by app developers, not by customers.

The court quashed a petition filed by the company seeking a favorable ruling in the case

The pessimistic market sentiment due to the faltering demand for iPhone continues to take a toll on Apple’s market cap. Last week, investors reacted negatively to media reports that Apple failed to prove the claims it had made in advertisements, regarding the battery life of iPhone XR.

To make matters worse, investors have become more cautious even as the recent escalation of the trade dispute between Washington and Beijing raises fresh questions about iPhone’s recovery.

In an earlier hearing in the App Store lawsuit, the court had expressed the view that Apple did not have sufficient grounds to counter the allegations against it, giving a clear signal that the final order would not be in the company’s favor.

Apple Store had courted controversy since its early years, and the legal fight over its allegedly unfair practices has been going on for around ten years now. The writing on the wall is pretty clear now – a hefty penalty might be slapped on Apple if the charges are proven and the business practices of its peers in the tech industry who operate online marketplaces, like Amazon (AMZM) and Google (GOOG), will come under strict scrutiny.

The steady recovery of Apple shares, after last year’s tech selloff, lost momentum early May. The stock, which is currently trading at the levels seen twelve months ago, has gained 19% since the beginning of 2019.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

ADBE Earnings: Adobe reports higher Q2 earnings; results beat estimates

Design software maker Adobe Inc. (NASDAQ: ADBE) on Thursday reported an increase in second-quarter 2024 revenue and earnings. The results also topped expectations. Second-quarter revenues came in at $5.31 billion,

Dollar Tree (DLTR): A look at the discount retailer’s growth initiatives at its namesake banner

Shares of Dollar Tree, Inc. (NASDAQ: DLTR) were down over 1% on Thursday. The stock has dropped 24% year-to-date. The company delivered sales and GAAP earnings growth for the first

Key highlights from Signet Jewelers’ (SIG) Q1 2025 earnings results

Signet Jewelers Limited (NYSE: SIG) reported first quarter 2025 earnings results today. Sales decreased 9.4% year-over-year to $1.5 billion. Sales were down 9.6% on a constant currency basis. Same-store sales

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top