Fun Fact of The Day 🌞
The Gmail logo was designed the night before it was launched
Here's what you need to know before the US markets open.
📱 Apple: Losing Trust Via Antitrust?
The immediate concern for Apple is its tiff with Epic Games that snowballed into an antitrust case in a matter of months. Back in January, Epic Games sued Apple for removing its popular video game Fortnite from the App Store.
At issue was Apple’s mandate that all in-app payments for apps hosted in the App Store should go through its own payment processing system. Apple would charge a 30% fee for this “service.” Epic Games balked at this “extortion” and started bypassing paying Apple by routing the payments through its own payment gateway.
Apple promptly removed Fortnite from the App Store for violating its terms and conditions. Google followed suit and removed Fortnite from its Play Store. Epic Games cried foul and filed a lawsuit against Apple and Google in the US District Court of Northern California, citing monopoly practices.
In its lawsuit, Epic Games has identified three ways to tame the big kahuna:
have an alternate payment processing system for in-app purchases,
alert users that such a facility exists, and finally,
give users the ability to install apps by sidestepping the app stores.
If the judge agrees with any or all of these demands, Apple and Google may see billions of dollars of revenue simply evaporating literally overnight. But Epic is only one of many thorns in Apple’s flesh. A Congressional bill announced earlier this week seeks to bring more competition to the “app stores.”
Companies like Apple and Google will not be allowed to condition the distribution of an app on their stores; in-app payment mandates are set to be invalidated or at least rendered ineffective.
Market Reaction
AAPL ended at $148.75, up 2.08%.
Newsworthy 📰
No Worries: Disney bullish on parks despite Delta; investors cheer streaming growth (DIS +5.69%)
Warning:
Airbnb warns of Delta impact on bookings; shares fall (ABNB -4.48%)
Shortfall:
Production issues to delay Ford Bronco and Mustang Mach-E deliveries (F -0.22%)
What to expect today 🕒
Alimera Sciences Inc. Earnings (ALIM)
6:00 PM IST: Import Price Index
What Next?
Subscribe to the Trove YouTube Channel
Join the Trove Telegram Community
Rate us on the Playstore or Appstore
Disclaimer: The email content is prepared for informational and educational purposes only and is not meant to represent trade or investment recommendations. Remember capital is at risk. Terms & Conditions apply.