1 unchanged sentence
Digital Markets Act Investigations
−Removed: On March 25, 2024, the European Commission (the “Commission”) announced that it had opened two formal noncompliance investigations against the Company under the European Union (“EU”) Digital Markets Act (the “DMA”).
+Added: On March 25, 2024, the Commission announced that it had opened two formal noncompliance investigations against the Company under the European Union (“EU”) Digital Markets Act (the “DMA”).
The Commission’s investigations concern (1) Article 5(4) of the DMA, which relates to how developers may communicate and promote offers to end users for apps distributed through the App Store as well as how developers may conclude contracts with those end users;
and (2) Article 6(3) of the DMA, which relates to default settings, uninstallation of apps, and a web browser choice screen on iOS.
−Removed: If the Commission concludes that there has been a violation, it can issue a cease and desist order and may impose fines up to 10% of the Company’s annual worldwide net sales.
+Added: On June 24, 2024, the Commission announced its preliminary findings in the Article 5(4) investigation alleging that the Company’s App Store rules are in breach of the DMA and announced that it had opened a third formal investigation against the Company regarding whether the Company’s new contractual requirements for third-party app developers and app marketplaces may violate the DMA.
+Added: If the Commission makes a final determination that there has been a violation, it can issue a cease and desist order and may impose fines up to 10% of the Company’s annual worldwide net sales.
Although any decision by the Commission can be appealed to the General Court of the EU, the effectiveness of the Commission’s order would apply immediately while the appeal is pending, unless a stay of the order is granted.
−Removed: The Company believes that it complies with the DMA and will continue to engage with the Commission as it conducts its investigations.
+Added: The Company believes that it complies with the DMA and has continued to make changes to its compliance plan in response to feedback and engagement with the Commission.
Department of Justice Lawsuit
On March 21, 2024, the U.S.
−Removed: Department of Justice (the “DOJ”) and 16 state and district attorneys general filed a civil antitrust lawsuit in the U.S.
+Added: Department of Justice (the “DOJ”) and a number of state and district attorneys general filed a civil antitrust lawsuit in the U.S.
District Court for the District of New Jersey against the Company alleging monopolization or attempted monopolization in the markets for “performance smartphones” and “smartphones” in violation of U.S.
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On January 16, 2024, the Company implemented a plan to comply with the injunction and filed a statement of compliance with the California District Court.
−Removed: On March 13, 2024, Epic filed a motion with the California District Court disputing the Company’s compliance plan and seeking to enforce the injunction.
−Removed: The Company has filed an opposition to Epic’s motion.
+Added: A motion by Epic disputing the Company’s compliance plan and seeking to enforce the injunction, which the Company has opposed, is pending before the California District Court.
The Company believes it has substantial defenses and intends to vigorously defend itself.
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The Company is subject to other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business.
−Removed: The Company settled certain matters during the second quarter of 2024 that did not individually or in the aggregate have a material impact on the Company’s financial condition or operating results.
+Added: The Company settled certain matters during the third quarter of 2024 that did not individually or in the aggregate have a material impact on the Company’s financial condition or operating results.
The outcome of litigation is inherently uncertain.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.