Apple erases nearly $85 billion in value after App Store ruling

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Stock fell as much as 3.5 per cent in its biggest intraday loss since May 4

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Apple Inc. shares sank on Friday, swiftly dropping to a session low after a federal judge ordered the company to change the way it operates its App Store, which would hurt the profitability of that business unit.

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The stock fell as much as 3.5 per cent in its biggest intraday loss since May 4, with the decline erasing nearly US$85 billion off the iPhone maker’s market capitalization. The size of the loss is bigger than all but 98 components of the S&P 500 Index.

A federal judge granted an injunction sought by Epic Games Inc. which would allow developers to steer consumers outside payment methods for mobile apps. It also ordered the game maker to pay damages to Apple for breach of contract.