Former Windows head Steven Sinofsky, a witness to Microsoft Corp.’s MSFT antitrust trial in the ’90s, finds the U.S. Department of Justice’s lawsuit against Apple Inc. AAPL as “so weird.”
Market Definition Importance: Sinofsky highlights the significance of market definition in U.S. antitrust cases, contrasting it with the European Union’s method.
Comparing the U.S. vs. Microsoft case, Sinofsky underscores the unique nature of Apple’s situation and the potential implications for developers.
Sinofsky notes the focus on Apple’s smartphone market share in the U.S. being around 60%, unlike Microsoft’s dominance in the computing industry.
He refers to the DOJ’s argument on market share as “incoherent.”
Why It Matters: Amid the DOJ’s antitrust lawsuit against Apple, Steven Sinofsky’s insights provide context on the unfolding legal battle.
The lawsuit, termed “dangerous” by Apple, focuses on the alleged smartphone monopoly’s impact on users and developers, challenging Apple’s core principles and innovation capabilities.
The DOJ’s lawsuit implicates Apple for impeding the success of major companies like Amazon.com, Inc. AMZN, Microsoft, and HTC Corp. in the smartphone market, citing Apple’s tight control over its ecosystem.
Despite the legal battle, “Mad Money” host Jim Cramer remains optimistic about Apple’s outlook, stating that the lawsuit does not detract from the company’s investment appeal.
Cramer draws a parallel to past scenarios where analysts downgraded Apple’s stock, creating buying opportunities.
Price Action: Apple’s shares were down 0.18% in premarket trading following Thursday’s closing at $171.37, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
