Hi this is ZipLaw! This is our Roundup Newsletter where we analyse the top news stories of the week and explain how they impact law firms.
Here’s what we’re serving today:
- 📄 Regulation: Apple changes the App Store
- 💸 Private Equity: Secret booming business
- 🔋 Energy: US sanctions hurt Russian Gas
- 🚢 Shipping: What Red Sea trouble means for Supply Chains
- 🤖 Technology: Big Tech & AI under investigation
- 🎥 Netflix's Subscriber Surge: Netflix's crackdown on password sharing and new ad-inclusive plans fuel a subscriber boom, hitting 260m users and venturing into live shows with a massive WWE deal.
- 🇨🇳 China's Stock Struggles: Chinese stocks are in a slump, with the CSI 300 at a 5-year low and the Hang Seng at 2009 levels. Amidst this downturn, China's prime minister is hinting at big moves to stabilise the market.
- 🔬 ASML's Sales Leap: ASML, the linchpin in high-end semiconductor production, sees a 30% sales surge, driven by AI demand, becoming Europe's tech titan. However, some argue that the AI boom is masking a broader slump in semiconductor demand.
- 🔍 Amazon's Watchdog Woes: France fined Amazon for intense worker surveillance, spotlighting the stress and health impacts of relentless monitoring on employees.
- 🚗 EV Slowdown: Tesla forecasts a significant slowdown in sales growth, hinting at a cooling electric car market and leaving investors guessing on delivery targets. Toyota said the EV market will max out at a 30% market share.
Apple's Big Shake-Up
In Short: Apple is turning heads with a ground-breaking revamp of its iOS, Safari, and App Store ecosystem, aiming to play nice with the new Digital Markets Act (DMA).
What are the changes?
- Apple will allow app sideloading (i.e. downloading apps outside of the Apple app store), alternative payment systems, and easier default web browser switching, in response to the fair competition requirements of the DMA.
- The company is reducing its app sales commission to 17%, with a further reduction to 10% after the first subscription year, and introducing a 3% payment processing charge for those using Apple's in-app purchase system.
- New fees include a €0.50 charge per app install for apps downloaded over 1 million times in a 12-month period, applicable to both Apple's App Store and third-party marketplaces.
Why does it matter?
Apple's changes, particularly allowing app sideloading and alternative payment systems, significantly enhance consumer choice and open up the market for increased competition. This could lead to more innovative and diverse app offerings and potentially lower prices for consumers due to reduced fees for developers. On the flip side, the changes could cut deep into Apple's revenue.
And let's not forget the broader implications. This move is a test for the EU's ability to wrangle Big Tech into submission. If successful, it could set a precedent for how global tech giants operate, not just within the EU but around the world. The stakes? Nothing less than the future of digital markets, consumer choice, and how we interact with our beloved gadgets.