Apple (AAPL) is once again under the European Union’s (EU) regulatory spotlight. The European Commission (EC) and the Consumer Protection Cooperation (CPC) Network allege that the tech giant’s App Store, iTunes Store, Arcade, Books, Podcasts, and Apple Music services engage in discriminatory geo-blocking practices.
The EU authorities accused Apple of unfairly restricting European users from accessing content and services available in other regions. Investors should note that the iPhone maker has been given a month to propose remedies to address these issues, or it may face penalties.
This latest regulatory action adds to AAPL’s growing legal problems in Europe. The company is set to receive its first-ever fine under the Digital Markets Act (DMA) for its restrictive App Store policies. Furthermore, in March 2024, the EU imposed a €1.8 billion fine on Apple for violating antitrust rules.
Key Issues Highlighted by Regulators
The EU authorities have identified several instances of geo-blocking within Apple’s media services. Firstly, AAPL’s services offer different interfaces for each country in the EU. In the app, users can only access the interface for the country where they registered their Apple account and face difficulties when attempting to change this.
Secondly, users when making paid purchases on Apple Media Services can only use payment methods, such as credit or debit cards, issued in the country where they registered their Apple account. Lastly, Apple customers cannot download apps from other EU countries, even if they are traveling or staying there temporarily.
The investigation by CPC and EC highlighted these practices as violations of EU anti-geo-blocking regulations, which are designed to ensure fair and equal access to digital services for consumers across borders.
Is AAPL Stock a Good Buy?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 24 Buys, eight Holds, and two Sells assigned in the last three months. At $245.68, the average Apple price target implies a 9.57% upside potential. Shares of the company have gained over 17% year-to-date.
