Apple Stock Drops Over 5% Amid abc Regulatory Probe into Cloud Practices
Apple Inc. shares tumbled more than five percent in early trading on Wall Street, following the initiation of a formal regulatory investigation into the company's cloud computing services, a probe insiders are calling the "abc inquiry." The investigation, launched by the Federal Trade Commission, focuses on allegations of anti-competitive data handling policies that may restrict third-party access to cloud storage. According to a press release from the FTC, the probe commenced on Monday and will examine internal documents from the past three years. The Securities and Exchange Commission reported the market decline at 10:00 a.m. Eastern time, citing a loss of over one hundred billion dollars in market capitalization. Analysts attribute the sell-off to investor uncertainty regarding potential fines and operational changes. The FTC has scheduled a public hearing for next month, with Apple representatives refusing to comment on the ongoing proceedings.