More than $100 billion was wiped from the value of Apple Inc (NASDAQ:AAPL, ETR:APC) on Thursday after the US Justice Department filed a landmark lawsuit against the tech giant.
The suit, one of the most significant legal challenges Apple has faced, accuses it of monopolising the smartphone market and stifling competition, particularly through its control over the iPhone app store.
The government alleges Apple has engaged in illegal practices to disadvantage rivals and force consumers into its ecosystem, raising costs and hindering innovation.
Filed in New Jersey alongside 16 state attorneys general, the action demands major changes to Apple's operations, possibly even leading to a company breakup.
Apple, which denies the claims, intends to "vigorously" defend against the lawsuit, emphasising its commitment to customer satisfaction, privacy, and security.
This marks the third US government legal action against Apple since 2009 and represents a broader crackdown on tech giants under the current administration.
Apple stock fell 4% to $171.37, valuing the business at $2.65 trillion.