Apple Stock Slides on EU App Store Investigation

Shares of Apple have fallen by news that European regulators will look into the fees it charges companies to sell through its App Store.

Apple stock (NASDAQ:AAPL) was recently down 2.0% to $205.75 as the S&P 500 and the Dow Jones Industrial Average were both down 1.3%.

Apple is being investigated by the European Commission after Spotify accused the company of using the App Store to deliberately disadvantage other app developers. 

The EU competition commission has decided to launch a formal antitrust investigation into Apple’s conduct “in the next few weeks” after surveying customers, rivals and others in the market. 

Spotify in March filed an antitrust complaint against Apple with the EU in which it argued that the iPhone maker enforced App Store rules that “purposely limit choice and stifle innovation at the expense of the user experience.” 

The EU can force companies to change business practices they deem unlawful and levy fines of up to 10 per cent of a company’s global turnover. However, investigations by the European Commission can take years to resolve unless the companies involved offer to settle the probes by making legally binding agreements to change their behavior.

Source: Barron’s