How could European Commission fines bring down shares of Apple, Google and Meta?
According to the well-known news agency Bloomberg , the largest IT companies Apple, Google and Meta face huge fines.
The European Commission is conducting investigations into violations of digital markets legislation.
Each of the defendants faces their own accusations: Google is accused of promoting its subsidiary services in the search, Apple's App Store rules do not meet DMA requirements, and Meta is accused of introducing fees for using Instagram and Facebook.
If a violation of the rules is confirmed, companies face fines of 10% of their total income.
How will the situation affect the price of these securities?
This amount of penalties will cause significant damage even to such large IT giants as the named companies. In addition, we should expect a deterioration in the reputation of these companies.
Naturally, in the event of an unfavorable outcome, shares of Apple, Google and Meta may fall in price quite significantly.
The fines will lead to a significant deterioration in financial results for 2024, and Apple and Meta investors will most likely have to forget about dividends.
In the current situation, you should for now refuse to buy shares of these companies, or play to reduce their value.
Brokers where you can open transactions for the sale of shares - https://time-forex.com/vsebrokery/brokery-fondowogo-rynka
What is the likelihood that the European Commission will make a positive decision on fines?
The probability of a negative outcome is quite high, the European Union needs additional money, so if the fact of digital dominance is confirmed, the European Commission is unlikely to make concessions. Moreover, this is not the first precedent for the introduction of such sanctions.
We can only wait for news and place pending orders to sell these assets.