Apple (AAPL) Faces a $2.7 Billion UK Lawsuit over its App Tracking Rules
Apple Inc. (NASDAQ: AAPL )'s basic business remains strong enough to absorb a potential legal cost. Fiscal third-quarter revenue reached a June-quarter record of $109.4 billion, up 16% year over year. iPhone revenue rose 22% to $54.3 billion. Apple's scale and strong cash generation give it real capacity to absorb legal costs without materially affecting its overall financial performance.
The UK lawsuit still faces a significant legal hurdle before Apple could face a judgment. The claim must proceed through the Competition Appeal Tribunal, while Apple disputes the allegations and says its App Tracking Transparency rules apply equally to all developers. Hence, the company has opportunities to challenge the claims or negotiate changes before it faces the full financial impact of a potential judgment.
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