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US DOJ’s blockbuster lawsuit against Apple is headline grabber but poses limited near-term impact
The U.S. Department of Justice filed a lawsuit against Apple Thursday, accusing the company led by CEO Tim Cook of engaging in anti-competitive business The DOJ's lawsuit creates "more of a headline risk" for Apple than a near-term event risk," analysts said.
However, even if the DOJ proves any of the allegations, it is highly unlikely that Apple will face material changes for years, as history shows that such lawsuits often take a significant amount of time to reach the trial, let alone a resolution. The DOJ filing also only makes a relatively passing mention of Apple’s $10b+ search deal with Google and doesn’t cite the App Store as one of its five principal examples of monopolistic behavior. Our point being, regulation/litigation is a greater longterm tail risk for Apple than it has been historically, but the underlying drivers of the stock for the foreseeable future will almost certainly be fundamentals-based, especially given this lawsuit might not be resolved until at least 2028 (or even 2030) based on past cases.
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