Bloomberg Technology 03/25/2024
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European Union Investigations into Tech Giants
- The European Union has launched investigations into Apple, Google, and Meta under the Digital Markets Act to address concerns about their dominance in the tech industry.
- The EU can impose fines of up to 10% of the companies' annual revenue for breaches and up to 20% for repeated infringements.
US Antitrust Lawsuits against Apple
- The US Department of Justice (DOJ) has filed an antitrust lawsuit against Apple, accusing the company of violating antitrust laws and suppressing competition in the App Store.
- The DOJ alleges that Apple's practices harm consumers by limiting their choices and preventing competitors from innovating.
- Public Knowledge supports the DOJ's case, emphasizing the need to protect consumers from dominant market players.
Apple's App Store Monopoly Scrutiny
- Apple faces antitrust scrutiny from the US DOJ and Congress over its App Store monopoly.
- The company has resisted attempts to regulate or change its behavior, but settling disputes behind closed doors may be in its best interest.
Lucid Motors Investment and Challenges
- Lucid Motors received a cash injection from Saudi Arabia's Public Investment Fund (PIF), providing a lifeline to the electric car maker.
- Despite the investment, Lucid faces challenges in meeting production targets and competing in the highly competitive EV market.
CATL's Capacity Expansion and Industry Dynamics
- CATL, the largest maker of batteries for EVs, continues capacity expansion despite the EV slowdown, while smaller Chinese companies struggle to keep up.
Boeing Leadership Changes
- Boeing CEO Dave Calhoun will step down at the end of the year as part of sweeping leadership overhauls.
Match Group Board Additions
- Match Group, the owner of dating apps, is adding two new directors to its board.
Chip Startup Funding and Stability AI Developments
- A chip startup providing technology to unify semiconductors has raised money in a funding round.
- Stability AI's CEO has resigned amid conflicts with investors and several senior staff departures.
- The company's CTO will serve as interim co-CEO.
- Some top-tier researchers have recently left Stability AI, raising questions about the remaining talent.
China's Domestic Chip Sourcing Guidelines
- China's Finance Ministry and Information Technology Ministry are requiring government entities to source chips for servers and servers entirely from domestic suppliers.
US DOJ Lawsuit against Apple's Policies
- The United States Department of Justice has filed an antitrust lawsuit against Apple, targeting its policies on running super apps, cloud gaming services, messaging, tap to pay, and support for third-party smartwatches on the iPhone.
- The lawsuit is expected to take several years to result in major changes.
Bitcoin Halving and Jack Mallers' Perspective
- Bitcoin is approaching its halving event, which could reduce supply and potentially increase its price.
- Jack Mallers argues that Bitcoin's fixed supply and halving rate could lead to price appreciation due to increased demand.
- He criticizes central planning of money by governments and sees Bitcoin as a more attractive asset in the long run.
- Mallers emphasizes Bitcoin's importance as a neutral value transfer protocol and compares it to the TCP/IP for value transfer on the internet.
- He cautions about the counterparty risk associated with stablecoins.
Strike's Expansion and Sustainability of Bitcoin Network
- Strike, a Bitcoin-focused payments company, is expanding its services to Africa, Europe, and Latin America.
- Strike believes Bitcoin can revolutionize cross-border payments and provide financial access in emerging markets.
- Jack Mallers addressed concerns about the sustainability of the Bitcoin network, explaining that miners are paid transaction fees and the protocol auto-adjusts mining difficulty to maintain equilibrium.
Frontline Ventures' Transatlantic Expansion Fund
- Frontline Ventures has raised $200 million to accelerate transatlantic expansion for software companies in the US and Europe.
- The firm believes that 70% of global software spending comes from the US and Europe, and companies need to access both markets to become category leaders.
Instagram and Threads' Political Content Limitations
- Instagram and Threads have rolled out a feature that limits political content by default in suggested posts.
- Some users are concerned about limiting political discourse, while others see it as a way to reduce misinformation.
- There is uncertainty about how political content is defined and categorized, leading to concerns about censorship and bias.