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Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

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8 months ago

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apple-lawsuit

Washington —A.P.he Justice Department announced a broad antitrust case against Apple on Thursday, accusing the company of creating an illegal smartphone monopoly that excludes competitors and stifles innovation.

The case, filed in federal court in New Jersey, claims that Apple has monopoly power in the smartphone market and utilizes its control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.”

The lawsuit, which was also filed with 16 state attorneys general, is the latest example of the Justice Department’s aggressive enforcement of federal antitrust law. Officials say it is intended to ensure a fair and competitive market, despite the fact that it has lost some significant anticompetition cases.

Apple deemed the case “wrong on the facts and the law” and stated it “will vigorously defend against it.”

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Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

President Joe Biden has urged the Justice Department and the Federal Trade Commission to rigorously enforce antitrust laws. Some business executives have objected to the Democratic administration’s increasing surveillance of corporate mergers and business deals, calling it overreaching, but others have praised it as long necessary.

The case is directly aimed at the digital fortress that Apple Inc., based in Cupertino, California, has painstakingly built around the iPhone and other popular products such as the iPad, Mac, and Apple Watch to create what is often referred to as a “walled garden” in which its meticulously designed hardware and software can coexist while requiring consumers to do little more than turn the devices on.

The strategy has helped Apple become the world’s most affluent corporation, with annual revenue of about $400 billion and, until recently, a market value of more than $3 trillion. However, Apple’s stock has declined 7% this year, while the rest of the stock market has risen to new highs, allowing long-time rival Microsoft — the target of a major Justice Department antitrust action a quarter-century ago — to take the lead as the world’s most valuable corporation.

According to Apple, a victory in the lawsuit would “hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect” and that it would “set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology.”

“At Apple, we innovate every day to make technology people love — designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users,” the company said in a press release. “This action undermines who we are and the ideals distinguishing Apple goods in intensely competitive marketplaces.

Apple has defended the walled garden as an essential feature valued by users seeking the best protection possible for their personal information. It has framed the barrier as a means for the iPhone to separate itself from handsets using Google’s Android software, which is less restrictive and available to a wider range of manufacturers.

Fears of an antitrust crackdown on Apple’s business model and concerns that it is falling behind Microsoft and Google in the race to build artificial intelligence-powered devices have all contributed to the company’s stock price decline.

However, antitrust investigators made it clear in their complaint that they saw Apple’s walled garden primarily as a tool to ward off competition. It established market circumstances that allowed it to charge higher prices, which have pushed its soaring profit margins while limiting innovation.

apple

Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

Attorney General Merrick Garland said in a statement, “Consumers should not be forced to pay higher prices because businesses violate antitrust laws. “We contend that Apple has maintained monopoly strength in the smartphone industry not just by outperforming competitors on merit but also by breaching federal antitrust laws. If left undisturbed, Apple would simply strengthen its smartphone monopoly.”

The Biden administration is escalating an antitrust siege in an attempt to limit Apple’s dominance, which has already resulted in lawsuits against Google and Amazon accusing them of using illegal tactics to stifle competition, as well as unsuccessful attempts to block acquisitions by Microsoft and Facebook parent Meta Platforms.

Apple’s economic interests are also entangled in the Justice Department’s case against Google, which went to trial last October and is set to begin closing arguments on May 1 in Washington, D.C. In D.Cthat case, regulators claim Google has stifled competition by paying for the rights to its already dominant online search engine to be the default place to handle queries on the iPhone and a variety of web browsers, in an arrangement worth an estimated $15 billion to $20 billion per year.

Now that the Justice Department is directly attacking Apple’s business, the company will lose considerably more.

The Justice Department is following up on other recent attempts to compel Apple to change how it operates the iPhone and other elements of its company.

Epic Games, the creator of the blockbuster video game Fortnite, filed an antitrust action against Apple in 2020 to break down the barriers safeguarding the iPhone App Store and a profitable payment system that operates within it. Apple has traditionally charged commissions ranging from 15% to 30% on digital transactions performed within applications, which Epic claimed was possible by an illegal monopoly that drives up consumer prices.

apple

Apple Has Kept An Illegal Monopoly Over Smartphones In US, Justice Department Says In Antitrust Suit

Following a month-long trial in 2021, a federal court decided primarily in Apple’s favour, except for allowing links to other payment alternatives within iPhone apps. Apple unsuccessfully contested that section of the verdict until the United States Supreme Court declined to hear an appeal in January, forcing the corporation to concede. However, Apple’s concessions to comply with the verdict are still being challenged as “bad faith” by Epic, seeking an April 30 hearing to ask U.S. District Judge Yvonne Gonzalez Rogers to require additional revisions.

Apple also had to open up the iPhone to allow apps to be downloaded and installed from competing stores in Europe earlier this month to comply with a new set of regulators known as the Digital Markets Act, or DMA, but critics see its approach as little more than a workaround that will allow it to continue to stifle true competition. European Union regulators have already promised to tighten down on Apple if the company’s actions continue to stifle meaningful consumer choice.

This comes on top of a $2 billion (1.8 billion euro) fine that European regulators levied earlier this month after determining that Apple had harmed competition in music streaming via the iPhone, despite Spotify being the market leader.

SOURCE – (AP)

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Trudeau Accelerates Bond Selloff Over Mass Spending Fears

Published

3 days ago

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2024-11-23

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Trudeau, Bond Market
Trudeau accelerated a bond selloff due to expectations of faster growth and a deeper deficit

Prime Minister Justin Trudeau has accelerated bond selloffs, citing fears of a larger deficit over his GST giveaway. Investors were concerned he was returning to his free-spending strategy as an election loom.

On Thursday, Trudeau unveiled a C$6.3 billion ($4.5 billion) tax relief and rebate program. It includes a two-month moratorium on federal sales tax on various commodities such as Christmas trees, wine, toys, and books and a C$250 check for almost 19 million Canadians, or over half of the population.

The declaration looked to mark the end of a brief period of fiscal restraint, as Finance Minister Chrystia Freeland committed to contain budget deficits to prevent stoking inflationary pressures.

Now that inflation has returned to the Bank of Canada’s 2% target, policymakers have reduced the benchmark interest rate by 125 basis points since June.

Trudeau’s Liberal government sees an opportunity to dig deeper into the public purse, but some analysts believe investors are keeping a careful eye on the country’s debt.

Bonds continued to fall on Thursday following the announcement, as the 10-year benchmark yield rose 7 basis points to 3.457%. After retail data showed a rise in consumer spending on Friday, it increased by up to 3.488%.

As the Trudeau government considers additional fiscal spending, concerns about Canada’s financial situation persist.

Budget Shortfall

Freeland has yet to publish final spending and income figures for the fiscal year that ended in October. Parliamentary Budget Officer Yves Giroux predicts a deficit of C$46.8 billion, much exceeding Freeland’s self-imposed aim of a C$40 billion shortfall.

Despite promises to reduce deficits, the Trudeau government continues to increase expenditure. This year’s budget includes a new capital gains tax inclusion rate to balance the cost of new housing and social initiatives.

This sparked anger from investors and entrepreneurs but allowed Freeland to present a consistent deficit despite significant spending.

The recent declaration indicates that Trudeau’s government no longer feels restrained in its capacity to use economic stimulus to restore favor.

Pierre Poilievre’s Conservatives have led most surveys by roughly 20 points for over a year. They have pounded the prime minister on affordability and promised to reduce taxes, especially income taxes. An election is expected in late October 2025.

The sales tax break will run from December 14 to February 15. The left-wing New Democratic Party intends to support it but has stated that it will continue to advocate for its permanent implementation and expansion to include additional items.

Let the Bankers Worry

Following Trudeau’s announcement, traders in overnight swap markets reduced their bets that the Bank of Canada will drop interest rates by 50 basis points for the second time in December, lowering the odds to fewer than 25% by the end of Thursday. As of late Friday morning, the odds were less than 17%.

The announcement also encouraged several experts to improve their short-term projections for Canada’s GDP. Analysts at the Bank of Montreal predict that the country’s GDP will increase at a 2.5% annualized rate in the first three months of 2025, up from 1.7%.

Speaking to reporters on Friday, Trudeau praised his government’s approach to program expenditure, claiming it fosters optimism and possibilities for families and the middle class.

“We’re focusing on Canadians. “Let the bankers worry about the economy,” Trudeau stated.

Related:

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

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Business

Forced Sale Google Chrome Could Fetch $20 Billion

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4 days ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

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Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

4 days ago

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2024-11-21

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Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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