Apple drops on report that Justice Department is eyeing antitrust probe - CNBC

Apple CEO Tim Cook

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Apple shares ticked lower Monday after a Reuters report saying the Justice Department is considering a probe of the iPhone maker.

The agency has been given jurisdiction to probe the company's practices as part of a broad review into potential anti-competitive behavior among big tech companies, Reuters reported, citing two sources.

The stock fell nearly 2% following the report, after trading higher earlier in the day. Apple and CEO Tim Cook are presenting updates to the company's central software at the annual Worldwide Developers Conference.

The tech-heavy Nasdaq Composite index fell Monday after similar regulatory headlines dinged tech giants Google, Amazon and Facebook.

Earlier Monday, the Wall Street Journal reported that the Federal Trade Commission will examine how Facebook's practices affect digital competition. The Washington Post reported over the weekend that Amazon has come under heightened scrutiny by U.S. regulators. And on Friday, the Journal reported that the Justice Department is preparing a probe of Google, sending shares of parent company Alphabet down more than 7% Monday.

The possible Apple probe is linked to the Google probe, Reuters reported, and stems from meetings between the DOJ and the FTC.

The headlines together paint a daunting picture for Silicon Valley and the stock market's most valuable companies. Big tech has long faced scrutiny from European regulators, but has so far shrugged off calls for government regulation in the U.S.

Apple has drawn increased criticism in recent months for what some — including streaming giant Spotify — see as anti-competitive behavior in the App Store. Apple owns and operates the online marketplace, collecting subscription fees from developers.

The so-called "Apple tax" accounts for a sizable percentage of Apple's burgeoning services revenue segment, but draws the ire of developers who, in some cases, compete with Apple's own apps in the store.

Spotify's EU complaint against Apple, filed in March, is pending investigation by European authorities.

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https://www.cnbc.com/2019/06/03/apple-drops-on-report-that-doj-has-jurisdiction-over-potential-antitrust-probe.html

2019-06-03 18:04:38Z
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