Apple to be fined in Russia for violating antitrust laws and abusing its position in the app store market
July 20, 2022
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Apple Intrinsic Value – Apple ($NASDAQ:AAPL) is set to be hit with a fine in Russia after the country’s federal anti-monopoly service said it violated antitrust laws and abused its position in the app store market. The service, also known as FAS, said it would levy a yet-to-be-determined fine against the tech giant, as it “has abused its dominant position in the iOS app distribution market.” FAS also said that “Apple prohibits iOS app developers from telling clients inside the app about the possibility of paying for purchases outside the App Store or using alternative payment methods.” It’s not yet clear how this will affect Apple’s market and earnings in the long term, but it’s certainly not good news for the company.
Market Reaction
This news has caused mostly negative sentiment among news media outlets. Despite this, on Tuesday APPLE stock opened at $147.9 and closed at $151.0, up by 2.7% from its last closing price of 147.1.
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Summary
The company’s stock price rose 2.7% the day after the news was announced. This fine is likely just the beginning of Apple’s antitrust woes in Europe. The company is already under investigation by the European Commission for its App Store practices, and this latest news will only add to the scrutiny. Apple’s stock price will continue to rise in the short-term as investors bet on the company’s long-term success. However, the increasing antitrust scrutiny could eventually lead to negative consequences for Apple, including fines, restrictions on its business practices, or even a break-up of the company.
