Apple sinks on antitrust concerns

Apple shares are down 10 per cent over the last month, with the sell-off accelerating after it was fined €1.8 billion for breaching EU competition law over music streaming. Apple will appeal, and this may drag on for years.

A few billion euro is small beer to a $2.6 trillion (€2.37 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. Apple is already under investigation by US antitrust enforcers, and investors worry vigorous antitrust enforcement in one jurisdiction may catalyse action in another.

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.

[ Apple's €1.8bn EU fine may be ust the start of reining in big tech ]

[ 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.

• Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
• Find The Irish Times on WhatsApp and stay up to date
• Our Inside Business podcast is published weekly – Find the latest episode here