Apple shares fell 4% after the United States sued the company for monopoly

Apple shares fell 4% this Thursday After the administration of US President, Joe BidenWill file a lawsuit against the company, alleging that the technology giant has created a monopoly in the smartphone market with its iPhone models.

“Consumers should not have to pay higher prices because companies violate antitrust laws,” The Attorney General said, Merrick Garland, This is a statement.

The Justice Department claims that Apple has used its control over the iPhone to “engage in widespread and sustained unlawful conduct.”

Among other things, the lawsuit alleges Apple is halting the successful development of so-called “super apps” that would allow consumers to more easily switch smartphones.

Apple is also accused of blocking the development of streaming apps that would allow users to enjoy higher quality video without paying for more cloud space or hardware so the phone can support it.

Cupertino (California)-based Apple denied the allegations and accused the government of overstepping its bounds in its allegations, according to a statement reported by local media.

“This lawsuit jeopardizes who we are and the principles that differentiate Apple products in highly competitive markets,” Apple defended itself, assuring that if the lawsuit was successful, “a dangerous precedent” would be set, giving the government the power to interfere in the design of technology.

Apple is one of the most powerful companies in the world, with annual revenues of approximately $400 billion and, until recently, a market cap of more than $3 trillion.

Apple technology company’s downward trend reversed a previous positive day wall StreetWhere? The three major stock indices hit all-time highs for the second consecutive day. After federal Reserve This will reassure investors about the prospects of rate cuts this year.

actions of micron technology MU.O rose sharply after hitting an all-time high following a surprise quarterly profit and a better-than-expected third-quarter revenue forecast.

broadcom AVGO.O also posted strong gains after TD Cowen raised its rating on the stock to “outperform”. Nvidia shares NVDA.O rose more than 1%, while the Philadelphia Semiconductor index .SOX improved.

The indices had already closed higher on Wednesday after the Fed left borrowing costs unchanged and indicated it still expected to cut rates by three-quarters of a percent by the end of 2024.

“Earnings Report Keeps Semiconductors Leading the Market“But more broadly, there is a risk posed by the Fed’s dovish stance on Wednesday,” said Matthew Miskin, co-head of investment strategy at John Hancock Investment Management.

According to preliminary closing data, the industrial average Dow Jones .DJI gained 266.62 points or 0.67% 39,778.75 units, meanwhile he S&P 500 .SPX rose 16.37 points, or 0.31%, to 5,240.99 units. He nasdaq composite .IXIC added 30.65 points, or 0.19%, to settle at 16,400.05 units.

With information from EFE and Reuters