The restrictive walled garden Apple has created around its products has long faced scrutiny over its potential to stifle competition. Photograph: Justin Lane/EPAA few billion euro is small beer to a $2.6 trillion giant such as Apple. Nevertheless, shares sold off for a reason. The EU fine was four times greater than expected, signalling the EU means business when it comes to competition law.
The restrictive walled garden Apple has created around its products has long faced scrutiny over its potential to stifle competition. Investors are concerned that the EU ruling will be followed by others that gradually break down that wall. New EU rules on the digital market are intended to clip the wings of big tech companies. Will they work?
Contrarians who buy when there’s blood in the streets will note Apple is, according to Bespoke Investment, more technically oversold than at any time since March 2020′s Covid crash. However, bears might counter that Apple’s valuation remains well above its 10-year average. For now, investors remain wary of catching the proverbial falling knife.