Amazon (AMZN) is facing an antitrust lawsuit from the FTC that could have sweeping effects across the tech industry. Apple (APPL) is one of the tech giants that could be hit if the FTC wins its suit. D.A. Davidson Managing Director and Senior Research Analyst Tom Forte joins Yahoo Finance to break down what Apple and other tech companies could face after the trial.

Forte explains concerns for Apple, noting it's "employing anticompetitive practices with its 30% fee it charges for app sellers on its platform," suggesting that the iPhone developer may be another target for an antitrust investigation.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

BRAD SMITH: What other tech companies could some of the allegations or accusations from the FTC that were brought forth towards Amazon also impact?

TOM FORTE: The one that I'm concerned about is Apple. And my concern for Apple is that they could get hit indirectly to the extent that we're finding out that Google is paying them, you know, billions of dollars for placement of their search within Apple's iOS operating system, and then to the extent that there's concern that Apple is employing anticompetitive practices with its 30% fee it charges for app sellers on its platform.

Now, indirectly, I think that Wayfair, Overstock, Etsy, other e-commerce players may benefit from, you know, Amazon potentially being cut into pieces or things of that nature or Amazon potentially being distracted. But again, I think Amazon's good at dealing with distraction. But those may be the-- you know, the beneficiaries of what's going on.

BRAD SMITH: And then just lastly Tom while we've got you, when you think about some of the broader calls for how tech might fare not just during the fourth quarter but going into 2024, especially if we are due to see a reset of some of the expectations around where AI is actually going to matriculate into the bottom lines of businesses, what does that spell out even for some of the Magnificent Seven out there who have been on an investing spree?

TOM FORTE: Yes, I love that you're hinting that there's a lot of hype and maybe not a lot of near term sales from AI. So my concern is the higher for longer interest rates could dampen valuation. So you could have potentially a double whammy to the extent you have lower expectations for next year and lower, you know, rates for stock on valuation, lower multiples. That could be a problem and one that we're continuing to monitor.

SEANA SMITH: All right, Tom Forte, always great to have you and get your perspective D.A. Davidson managing director and senior research analyst. Thanks.