The European Union has charged Apple (AAPL) under its Digital Markets Act, which could result in serious fines. The bloc alleges that the tech giant’s App Store practices prevent app developers from directing consumers to cheaper services. TECHnalysis Research president and chief analyst Bob O’Donnell joins Market Domination to give insight into Apple’s dealings with the EU’s regulatory body and its investments in artificial intelligence.
O’Donnell explains that the investigation is unlikely to conclude anytime soon: "There’s no official word on part of this until March of 2025, so nothing right away," the chief analyst says.
He argues that any stock reaction to the news may be premature, particularly given Apple’s incentives to make changes: "I do think Apple is going to have to make some tweaks, some things that they don’t necessarily want to do, but at the end of the day, again, it’s an important enough market that they’re going to have to follow some of these requirements that the EU is putting into place. And therefore, long term, I don’t think the impact is that big of a deal as far as the value of the company and the way people view the stock."
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