Wall Street casually shrugs off Apple antitrust lawsuit

Investors should stick with company, says Chris Blackhurst

Apple did not mince its words. It is facing a lawsuit that "threatens who we are and the principles that set Apple products apart in fiercely competitive markets", the company said. Defeat would set a "dangerous precedent".

An 88-page filing by the US Department of Justice, along with 16 states and the District of Columbia, accused the near-$3 trillion behemoth of violating antitrust laws with practices designed to keep customers tied to their iPhones and less likely to switch to a competing device. The tech giant prevented other companies from offering applications that rival Apple products, such as its digital wallet, which could diminish the value of the iPhone; this hurts consumers and rival companies, according to the lawsuit.

The White House has had enough. It wants the monopoly to end. If successful, it could seek the break-up of the Silicon Valley monster. But while the action was met with near-hysterical approval by consumer groups and campaigners, and described in existential terms by Apple itself, the corporation’s shares fell by only 4 per cent. This is about the iPhone, a cornerstone of the Apple empire. It’s always a delicious moment when the emotional, knee-jerk reaction of one side collides with the cool, dispassionate number-crunchers on the other. Wall Street shrugged. That was it.