Wired
With the European Union (EU) at the forefront, there is increasing tightening on giant tech companies around the world. In addition to the huge fines that have been used in the past, specific regulatory bills are being considered from the perspective of antitrust law (antitrust law). But when it comes to the United States, it may not be enough to bring about structural reforms for giant tech companies like Apple.
Is the submitted regulatory bill crunchy?
According to Wedbush Securities, investors aren’t thinking it’s a risk, they’re awake, despite the fact that lawmakers are submitting new antitrust legislation in the United States. In fact, according to the company’s chief analyst, Daniel Ives, despite the bill’s submission, it’s unlikely that the structure of Apple and other giant tech companies will change significantly.
In early June, several US lawmakers submitted antitrust bills targeting the so-called “GAFA” (Google, Amazon, Facebook, Apple). The bill stipulates fair competition in online app stores, restrictions on pre-installation of official apps, etc., and looks like it follows the leading EU.
However, Ives dismisses it as “not as scary as it looks.” Unless the current antitrust law is amended, it is likely that at best it will be fines and adjustments to the business model, and there is no consensus among lawmakers. This is because it is highly likely that they will collide and lose momentum.
App Store business model doesn’t break easily
Ives also specifically mentioned Apple, noting that the App Store wouldn’t be forced to make significant improvements.
In addition to the bills mentioned above, Apple is currently facing a trial with Epic Games, arguing over the pros and cons of forcibly collecting fees from billing apps published on the App Store. It’s attracting attention as a trial that determines the direction of the platform, but Mr. Ives said, “The App Store has a very robust moat, both in court and in politics,” and it seems that the store’s business model can easily collapse. I don’t think it will happen.
And while Apple is a problem with antitrust laws, it’s certainly just a “sidestream” compared to Facebook and Google. Google is currently being sued by the US Department of Justice for antitrust violations. The ministry’s major proceedings against giant tech companies have been since Microsoft, when Windows was a problem.
Given this situation, Wedbush Securities has made the stock outlook for tech companies “very bullish” in the second half of 2021. Ives expects tech stocks to rise another 15% later this year, despite the threat of antitrust laws.
Source: AppleInsider
(kihachi)
Source: iPhone Mania