What happened
Shares of Apple, which have been in recovery mode so far this year following a dismal 2022 for tech stocks, received another boost on Monday. The tech stock rose by almost 2% on the day, edging past the 1.1% gain of the bellwether S&P 500 index. Investors were cheered by the company's apparently feisty stance on an upcoming regulatory hearing.
So what
Citing unnamed "people familiar with the matter," Reuters reported that Apple will seek to convince the European Union's (EU) antitrust authority that it does not engage in anticompetitive practices.
The company is being accused by the European Commission (EC), the economic bloc's administrative arm and frequent regulatory authority, of such conduct in regards to mobile wallets. Some have accused the company of blocking rival software developers' wallets from access to its popular line of mobile devices.
This allegation was leveled by the EC in May 2022. The regulator is scheduled to hold a closed hearing on Tuesday with company officials to discuss it.
Much is at stake in this dispute. If the EC finds Apple guilty, the American tech company could be fined up to 10% of its global turnover; its most recent annual sales figure is $394 billion.
Now what
In contrast to fellow U.S. tech behemoth Microsoft, which has used conciliatory language in its efforts to push through a proposed buyout of video game developer and publisher Activision Blizzard, Apple is holding firm on its stance that it is conducting itself properly.
As for the Apple Pay service that is at the heart of the controversy, the company said last year that it "is only one of many options available to European consumers for making payments ... ."
