Description: In January, European officials slapped a $1.8 billion Euro fine on Apple for its practices in the music streaming space. Now the U.S. government is going after Apple for anti-competitive practices in its smartphone business. The Justice Department stated that “Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone, promote interoperability, and lower costs for consumers and developers.” As might be expected, Apple disagreed strongly, declaring that “we innovate every day to make technology people love — designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users.”

Date:  March 21, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/us-justice-dept-apple-1.7150800

Discussion points:

1) How many of the students in your class are iPhone users? How many use another type of smartphone?

2) Do you see Apple’s strategy as anti-competitive?

3) Page 9-30 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the value of brand recognition and trademarks, including Apple’s. What was the most valuable brand at the time the text was written? Can you find which is the most valuable brand today?