Apple Stock Is Tumbling Thursday: What's Going On?

Apple Inc AAPL shares are trading lower Thursday after the U.S. Department of Justice sued the company, claiming it monopolized the smartphone market.

What To Know: The DOJ and 16 state attorneys general alleged that Apple created a monopoly in the smartphone market at the expense of consumers and developers.

“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland said in a statement, per Reuters.

“If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”

The DOJ also claimed the company’s anti-competitive practices go beyond the iPhone and that Apple’s different products helped to reinforce the “moat around its smartphone monopoly."

Apple told Benzinga that the lawsuit threatens the principles that set its products apart in fiercely competitive markets.

“If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect,” the company said.

“It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it."

Apple is the latest major tech company to be sued by U.S. regulators. Alphabet, Meta Platforms and Amazon were all targeted by the DOJ in recent years.

Check This Out: Nvidia Could Be Next After Apple To Face Lawsuit From DOJ, Says Jim Cramer

AAPL Price Action: Apple shares were down 3.3% at $172.72 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Apple.