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Spotify paid $9 billion in royalties in 2023. Here's what fueled the growth None - Every year since 2021, Spotify has published its “Loud & Clear” report, an attempt to be more transparent about its payments LOS ANGELES -- LOS ANGELES (AP) — Spotify paid out $9 billion in streaming royalties last year, the streaming giant said Tuesday in its latest “Loud and Clear” report. Spotify's fourth annual report, which originally launched in 2021 following criticism over its lack of transparency, noted record accomplishments, including the highest annual payment from any retailer to the music industry. “This is everything we know about how much is being paid out, how many artists are achieving different levels of success,” says Charlie Hellman, the vice president and global head of music product at Spotify. “So, everyone can have access to the information and be sort of up to date with the state of the industry.” According to the data, 1,250 artists generated over $1 million each in recording and publishing royalties in 2023; 11,600 generated over $100,000 and 66,000 generated over $10,000 — numbers that have almost tripled since 2017. More than half of those 66,000 artists came from countries where English is not the primary language, the report says, reflecting an increasingly global music landscape. And “indie” artists — the self-distributed, do-it-yourself acts and those on independent record labels, according to Hellman — accounted for $4.5 billion, half of all royalties paid out by Spotify. “There are millions of people who’ve uploaded a song at least once but that doesn’t really speak to whether they’re an artist, or if they’re doing this more as a hobby,” Hellman says. Spotify zooms in on artists that have “at least put up an album’s worth of music once they seem to have some indication that they’re trying to build a fan base.” He estimates there are “about 225,000 professionally aspiring artists” on the platform. “They have a little bit of a following. They might, you know, have gigs listed on Spotify or things like that,” he says. In December, Spotify announced it was axing 17% of its global workforce, the music streaming service’s third round of layoffs in 2023 as it moved to slash costs while focusing on becoming profitable. The previous month, Spotify announced it would eliminate payments for songs with less than 1,000 annual streams, starting in 2024. “Songs that generate less than a thousand streams in a year would be generating pennies, a few cents in royalties,” Hellman explains. “So what we’re seeing was that there was an increasing amount of uploaders that had $0.03, $0.08, $0.36 sitting there.” For those DIY artists, there's a minimum threshold to withdraw money from a distributor — $5.35 at DistroKid and $1 at TuneCore, two such distributors — and Hellman argues the withdrawal fees would eclipse the royalties. Spotify — and most other streaming services — pay royalties to the rights holders of the music on its platform, a number which is determined by “streamshare." That's calculated by adding up how many times music owned or controlled by a particular rights holder was streamed and dividing by the total number of streams in that market. In short: Larger rights holders have a larger percentage of the market share. And a listener streaming an artist 25% of the time does not mean the act receives 25% of the listener's subscription fee. “All those pennies sitting in bank accounts all over the place was siphoning money away from artists that were really doing this, as an aspiring professional," says Hellman of the decision. "And so, those royalties are now being put in the pot so that they can be redirected to artists that are getting more than a thousand streams a year.”
South Korea will suspend licenses of 2 senior doctors in first punishment for doctors' walkouts None - South Korean authorities will suspend the licenses of two senior doctors for allegedly inciting the weekslong walkouts by medical interns and residents that have disrupted hospital operations South Korea will suspend licenses of 2 senior doctors in first punishment for doctors' walkouts SEOUL, South Korea -- South Korean authorities will suspend the licenses of two senior doctors for allegedly inciting the weekslong walkouts by thousands of medical interns and residents that have disrupted hospital operations, one of the doctors said Monday. The impending suspensions are the punishments against physicians after more than 90% of the country's 13,000 doctors-in-training walked off the job last month to protest the government’s plan to sharply increase medical school admissions. Officials say the recruitment plan is aimed at adding more doctors to prepare for South Korea’s rapidly aging population in a country whose doctor-to-population ratio is one of the lowest in the developed world. But doctors say schools can’t handle an abrupt, steep increase in students, and that it would ultimately undermine the country’s medical services. In early March, the government began taking steps to suspend the licenses of striking junior doctors after they refused its orders to return to work by the end of February. Police are separately investigating five senior members of the Korean Medical Association, which represents doctors in South Korea, for allegedly inciting and abetting the strikes. Park Myung-Ha, one of the five members, said he received a government-sent letter saying that his license will be suspended for three months from April 15. Park, who works for the KMA’s emergency committee, said committee leader Kim Taek-woo was also given a three-month suspension. The Health Ministry said it wouldn’t confirm any reported administrative steps imposed on individual doctors. “My fellow doctors and I are really angered and appalled by the government’s measure,” Park told The Associated Press. Park accused the government of attempting to break up the KMA emergency committee and sending a warning message to striking junior doctors. He said he and others are discussing legal steps to respond to the license suspensions. About 12,000 junior doctors have been off the job for a month, but none has received a license suspension. Observers have said it would take a few months to suspend all their licenses and that the government would likely end up suspending only strike leaders. The striking junior doctors account for less than 10% of South Korea’s 140,000 doctors. But in some major hospitals, they represent about 30%-40% of the doctors, assisting senior doctors during surgeries and dealing with inpatients while training. Their strikes have caused hundreds of canceled or postponed surgeries and other treatments, but officials say the country’s handling of emergency and critical patients largely remains stable. Senior doctors at major university hospitals recently decided to submit resignations next week in support of the junior doctors. Still, most of them will likely continue to report to work. If they walk off the job, that would burden South Korea’s medical services severely. In a briefing earlier Monday, Vice Health Minister Park Min-soo urged senior doctors to cancel their plans and persuade the striking junior doctors to return to work. “Under any circumstances, you must not use the lives of the people for negotiations,” Park said. In early February, the government said it would increase the country’s medical school enrollment quota by 2,000 starting next year, from the current cap of 3,058 that has been unchanged since 2006. Officials say more doctors are required to address a long-standing shortage of physicians in rural areas and in essential yet low-paying specialties. But doctors say newly recruited students would also try to work in the capital region and in high-paying fields like plastic surgery and dermatology. They say the government plan would also result in doctors performing unnecessary treatments due to increased competition. Surveys show a majority of the South Korean public support the government’s recruitment plan. Critics say doctors — one of the best-paid professions in South Korea — are only worrying about the possibility of a lower income in the future.
Seat belt saved passenger's life on Boeing 737 jet that suffered a blowout, new lawsuit says None - More passengers aboard an Alaska Airlines Boeing 737 jet when part of its fuselage blew out in January are suing — including one who says his life was saved by a seat belt SEATTLE -- More passengers who were aboard an Alaska Airlines Boeing 737 jet when part of its fuselage blew out in January are suing — including one who says his life was saved by a seat belt. The latest lawsuit, representing seven passengers, was filed in Washington’s King County Superior Court Thursday against Boeing, Alaska Airlines, Spirit AeroSystems and 10 people listed as John Does. Cuong Tran, of Upland, California, was sitting in the row behind where the side of the aircraft tore away and left a door-sized hole on Alaska Airlines Flight 1282 on Jan. 5, according to a news release from attorney Timothy A. Loranger. Loranger, who filed the lawsuit, said air rushed out of the hole, pulling on Tran and others nearby. The suction tore Tran's shoes and socks from his feet and he felt his body lift off his seat, the news release said, adding that Tran's foot was hurt when it was jerked into the seat structure in front of him. “Our clients — and likely every passenger on that flight — suffered unnecessary trauma due to the failure of Boeing, Spirit AeroSystems, and Alaska Airlines to ensure that the aircraft was in a safe and airworthy condition,” Loranger said. The lawsuit seeks punitive, compensatory and general damages for alleged negligence, product construction/manufacturing defect liability and failing in its duty to protect passengers from harm. Boeing responded to an email Thursday seeking comment saying, “We have nothing to add.” Alaska Airlines and Spirit AeroSystems didn't immediately respond to emails seeking comment. The first six minutes of the flight from Portland, Oregon, to Southern California’s Ontario International Airport had been routine, the Boeing 737 Max 9 about halfway to its cruising altitude and traveling at more than 400 mph (640 kph). Then the piece of fuselage covering an inoperative emergency exit behind the left wing blew out. The pilots made an emergency landing back where they started in Portland. No one was seriously hurt. Another lawsuit against Boeing and Alaska Airlines was filed last month on behalf of 22 other passengers on the flight, also accusing the companies of negligence. In a preliminary report last month, the National Transportation Safety Board said four bolts that help keep the door plug in place were missing after the panel was removed so workers could repair nearby damaged rivets last September. The rivet repairs were done by contractors working for Boeing supplier Spirit AeroSystems. Boeing, under increased scrutiny since the incident, has acknowledged in a letter to Congress that it cannot find records for work done on the door panel of the Alaska Airlines plane. The Department of Justice has also launched a criminal investigation. The probe would assist the department’s review of whether Boeing complied with a settlement that resolved a federal investigation into the safety of its 737 Max aircraft after two deadly crashes in 2018 and 2019.
The Bank of Japan ends its negative interest rate policy, opting for its first hike in 17 years None - Japan's central bank has raised its benchmark interest rate for the first time in 17 years, ending a longstanding policy of negative rates meant to boost the economy The Bank of Japan ends its negative interest rate policy, opting for its first hike in 17 years TOKYO -- Japan’s central bank raised its benchmark interest rate Tuesday for the first time in 17 years, ending a longstanding policy of negative rates meant to boost the economy. The Bank of Japan's lending rate for overnight borrowing by banks was raised to a range of 0 to 0.1% from minus 0.1% at a policy meeting that confirmed expectations of a shift away from ultra-lax monetary policy. It was the first rate hike since February 2007. The negative interest rate policy, combined with other measures to inject money into the economy and keep borrowing costs low, “have fulfilled their roles,” Bank of Japan Gov. Kazuo Ueda told reporters. The bank has an inflation target of 2% that it used as a benchmark for whether Japan had finally escaped deflationary tendencies. But it had remained cautious about “normalizing” monetary policy, or ending negative borrowing rates, even after data showed inflation at about that rate in recent months. Ueda said there was “a positive cycle” of a gradual rise of wages and prices, while stressing that monetary policy will remain easy for some time. Although private sector banks and other financial organizations will make their own decisions about rates, he said did not foresee any drastic rises. The central bank will watch for any big moves in rates, which would cause confusion, he added. “We made the decision because we foresaw stable and continuous 2% inflation,” he added. Another factor supporting the shift: Japanese companies have announced relatively robust wage hikes for this year's round of negotiations with trade unions. Wages and profits at companies were improving, the Bank of Japan said, in releasing its latest decision, referring to “anecdotal” accounts as well as data it had gathered lately. “Japan’s economy has recovered moderately,” it said. Market reaction was muted as the decision had been anticipated after Japanese media reports earlier this week. Tokyo's benchmark Nikkei 225 index gained nearly 0.7% on Tuesday, while the dollar was steady at about 150 yen. Analysts said the bank likely won’t rush to change its overall easy lending framework and will closely monitor prices. Harumi Taguchi, principal economist at S & P Global Market Intelligence, said she believes inflation could begin falling below 2% and wage increases may not necessarily lead to robust consumer spending if people choose to save, rather than spend. “While the bank’s decisions will contribute to improving the functioning of financial markets, the impact on the real economy is likely to be limited,” according to analysis by S & P Global Market Intelligence. Ueda had repeatedly said the central bank would review its negative rate and other easing measures if the 2 percent inflation target was met and was accompanied by wage increases. The Japanese central bank's policy is quite different from those of the U.S. Federal Reserve and the European Central Bank. Both have been moving to lower interest rates after rapidly raising them to clamp down on inflation. The Bank of Japan has kept borrowing costs extremely low for many years to encourage Japanese consumers and businesses to spend and invest to help sustain stronger economic growth. Japan recently became the world’s fourth biggest economy, slipping behind Germany in terms of its nominal gross domestic product, or GDP. The U.S. economy is the largest, followed by China, which overtook Japan over a decade ago. BOJ officials say they want to make sure inflation is based on domestic factors that can sustain higher wages, not external ones. Analysts expect the Bank of Japan to continue to move slowly on further raising interest rates. The ultra-lax monetary policy also included huge injections of money into the economy through purchases of Japanese government bonds and other assets. The bank said the BOJ would continue with those government bond purchases at a rate of about 6 trillion yen ($40.2 billion), and adjust quickly depending on economic trends. But it discontinued or gave timelines for ending purchases of real estate investment trusts and other assets. The ultra-lax monetary policy that Ueda's predecessor, Haruhiko Kuroda, put in place more than a decade ago was designed to establish what he called a “virtuous cycle” of inflationary expectations that would lead people to spend more both because borrowing costs were low and because they feared prices would rise in the future. That was meant to counter a spell of deflationary trends where people held back on purchases in hopes of lower prices, which led companies to invest less and to cut back on wages. The Bank of Japan said in its assessment of the economy that the current recovery was based partly on a “materialization of pent-up demand” even as global demand has weakened. But it noted that industrial production was stagnant, partly due to cutbacks by automakers. Housing investment was relatively weak and government spending was “more or less flat.” Ueda characterized the situation as “less than perfect.” “Concerning risks to the outlook, there are extremely high uncertainties surrounding Japan's economic activity and prices,” the Bank of Japan said. ___ Yuri Kageyama is on X: https://twitter.com/yurikageyama
Federal officials say they're investigating a tire problem on an American Airlines flight to LA None - The Federal Aviation Administration says it's investigating an incident in which an American Airlines plane flying from Dallas to Los Angeles suffered a tire problem FORT WORTH, Texas -- Federal officials are investigating an incident in which an American Airlines plane flying from Dallas to Los Angeles suffered a tire problem, just a week after a United Airlines jetliner lost a tire during takeoff. The Federal Aviation Administration said Thursday that preliminary information indicated that American flight 345 “blew a tire" during takeoff from Dallas-Fort Worth International Airport but said later “the crew reported a flat tire.” American said the pilots got a warning of low pressure in one of the tires. The Boeing 777 landed safely and taxied to the gate under its own power, American said. That model of plane has 14 tires to handle the pressure of takeoffs and landings: six on each of the two main landing gear assemblies and two more under the nose landing gear. The FAA is also investigating an incident last week in which a United Airlines Boeing 777 lost a tire during takeoff in San Francisco and cut short a flight to Japan, landing safely at Los Angeles International Airport. Both planes in the recent incidents are more than 20 years old.
Under Armour, Lennar fall; Dick's Sporting Goods, Robinhood Markets rise, Thursday, 3/14/2024 None - Stocks that traded heavily or had substantial price changes on Thursday: Under Armour, Lennar fall; Dick’s Sporting Goods, Robinhood Markets rise The Associated Press By The Associated Press NEW YORK -- Stocks that traded heavily or had substantial price changes on Thursday: Anheuser-Busch Inbev SA, down $3.54 to $61.01. Altria Group Inc. plans to trim its stake in the brewer of Budweiser, Stella Artois and other beers. Lennar Corp., down $12.64 to $152.86. The homebuilder's fiscal first-quarter revenue and deliveries fell short of analysts' forecasts. Under Armour Inc., down 87 cents to $7.23. The sports apparel company said Kevin Plank will replace Stephanie Linnartz as CEO. Dollar General Corp., down $8.11 to $150.06. The discount retailer beat Wall Street’s fourth-quarter earnings and revenue forecasts. Dick's Sporting Goods Inc., up $29.05 to $216.81. The sporting goods retailer gave investors an encouraging earnings forecast for the year. Robinhood Markets Inc., up 89 cents to $18.05. The brokerage reported a surge in trading volumes for February. G-III Apparel Group Ltd., down $3.66 to $26.67. The owner of DKNY and other fashion brands gave investors a disappointing earnings forecast for the year. United States Steel Corp., down 2.60 cents to $38.26. President Joe Biden opposes the planned sale of the steel company to Nippon Steel of Japan.
‘Jaw-droppers’: Bentley profits top £500m as rich seek personalised cars None - The luxury carmaker Bentley is cashing in as more of the world’s richest people opt to spend hundreds of thousands of pounds on “levels of personalisation that we’ve never seen before”, the company has said. While households all over the world struggle with inflation and the continued impact of the global energy crisis, its chief executive, Adrian Hallmark, said that “our customers can still afford our cars”, even if some were hesitating before committing. On the whole, the weaker global economy has passed by many luxury car buyers, as the world’s super-rich prove willing to pay enormous sums on customising their vehicles to set themselves apart from the merely very wealthy. “In the old days it would be one person in Brunei,” said Hallmark, , referring to the small but oil-rich kingdom. However, the carmaker is finding increasing interest from all over the world in a game of global one-upmanship. That helped the company, owned by Germany’s Volkswagen, make operating profits of €589m (£502m) – its second best ever after 2022 – on sales of €2.9bn in 2023, according to financial results published on Tuesday. It delivered 13,560 cars in 2023, its third-highest retail figure in history. A Bentley car is already a pricey item, starting at about £170,000. But the wealthiest buyers need more. One buyer ordered a bespoke, one-off car with a sticker price of €2m. On top of that Bentley has quoted another €400,000 of options that “we never even thought of” to create “jaw-droppers”, Hallmark said – such as racy carbon fibre to replace metal components. View image in fullscreen Bentley made operating profits of £502m in 2023. Photograph: Ben Stansall/AFP/Getty Images Another customer requested that the company use wood from his own forest to make the car’s panels. That and other extravagances – such as a personalised tree emblem stitched on to headrests – pushed the total cost of the car up to £480,000, more than double the standard price. In practice, relatively few car buyers are able to resist fancy add-ons, even on cheaper cars. Hallmark said his customers spend about £39,000 extra on features such as different colour leather, hand stitching in coloured thread, “jewel fuel caps” and “exotic and sustainable” materials. Bentley is not the only British luxury carmaker that is pushing personalised options to extravagant levels. Its rival Rolls-Royce Motor Cars, owned by Germany’s BMW, has previously made a car with a paint job containing 1,000 crushed diamonds, and another with a night sky recreated on the roof with LED lights. The trend for personalisation has waxed and waned over the consumer age. Henry Ford is often credited with creating modern factory production methods, relying on standardisation to churn out cheap cars for the masses. Ford famously enjoyed saying that customers could have “any colour so long as it is black”. Other companies have found success by going in the opposite direction. Coffee company Starbucks famously asserts that there are 170,000 combinations of options available for its drinks. Bentley can top that, and then some: it claims there are 46bn configurations for its cars. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion One option that even the wealthiest Bentley customer does not yet have is buying a car with zero carbon emissions. The company has delayed the launch of its first battery electric car by a year, to 2026, because of problems with getting the right batteries for its needs. Hallmark said the company was “not walking away from carbon neutrality” with the delay to its first electric model, and that it still planned to go all-electric as each model was replaced. However, the delay means Bentley will continue to sell hybrids, which combine an internal combustion engine with a small battery, beyond 2030. The UK government under Boris Johnson had initially planned to end sales of petrol and diesel cars in 2030. However, Rishi Sunak U-turned on that decision, pushing back the ban until 2035. Hallmark said it would be a mistake for a potential Labour government to change course once again if it won an election within the next year, because carmakers needed several years’ notice to adjust production plans. Labour committed in October to pulling the ban back to 2030. “We cannot react or respond at that speed to these vacillations,” Hallmark said.
From ocean to plate: the female-led seaweed company – from the agencies None - Eriksen grew up cutting cod tongues and baiting long lines for her fisher father in the village of Napp. The ocean was a lifeline for her family. But her curiosity around seaweed only arose when she was researching nutrition for her own health. Her discoveries led to a passionate belief that seaweed is the food of the future
The tyranny of the algorithm: why every coffee shop looks the same – podcast None - From the generic hipster cafe to the ‘Instagram wall’, the internet has pushed us towards a kind of global ubiquity – and this phenomenon is only going to intensify. By Kyle Chayka Support The Guardian The Guardian is editorially independent. And we want to keep our journalism open and accessible to all. But we increasingly need our readers to fund our work.
Could Australia go nuclear? – podcast None - Nuclear power is shaping up as a major issue leading into the next federal election. The Coalition wants Australia to lift its ban on nuclear power, with leader Peter Dutton saying his plan would involve building as many as six power plants. But the government has dismissed the idea. Environment reporter Graham Readfearn talks to Nour Haydar about what’s being proposed and whether it’s possible in Australia You can support the Guardian at theguardian.com/fullstorysupport How to listen to podcasts: everything you need to know
Liz Cheney blasts Trump's Republican enablers None - Molly Jong Fast, Special Correspondent for Vanity Fair, Ruth Ben-Ghait, Professor of History at NYU, and Jason Stanley, Professor of Philosophy at Yale join Alicia Menendez in for Nicolle Wallace on Deadline White House for the latest installment of the American Autocracy series discussing Donald Trump enables doing his bidding to be an autocrat. March 20, 2024
Escaped Idaho inmate and suspected accomplice captured after manhunt None - The inmate who escaped from an Idaho prison and his suspected accomplice who shot corrections officers in Boise and set off a manhunt were taken into custody Thursday, and officials say they are investigating two other deaths that may be linked to the men. Skylar Meade and Nicholas Umphenour were arrested in Twin Falls, Idaho, around 2 p.m. Thursday after a short car chase, Boise police Chief Ron Winegar said. No gunfire was exchanged during the arrests, and there was no "extensive use of force," he said. Idaho State Police are investigating two homicides in separate locations — one in Nez Perce County and one in Clearwater County — that may be linked to the escape and manhunt, Lt. Col. Sheldon Kelly said. Both homicides occurred within the last 24 hours, police said. Police said handcuffs believed to have been worn by Meade when he escaped were found at the scene of one of the homicides. The car the suspects were initially driving in their escape, a Honda Accord, was located in northern Idaho, police said Thursday. Officials allege the men then took another car that belonged to one of the homicide victims. Police said the suspects "did have his car" but that they don't have details on how they got the car. The homicide investigation is ongoing, and the coroner’s office will provide the victims’ — both adult males — identifications and causes of death, he said. Officials have said that Meade and Umphenour had planned the brazen attack that wounded three corrections officers in order to free Meade as he was being transported from a Boise hospital after he had injured himself, authorities said. “What we know, with near certainty, this was not an accident,” said Josh Tewalt, director of the Corrections Department. “This was a planned event. And we’re channeling every resource we have into trying to understand exactly how they went about planning it.” Skylar Meade. Idaho Department of Corrections via AP / AP Meade, 31, is serving a 20-year prison sentence for shooting at a sheriff’s sergeant during a high-speed chase. At 2:15 a.m. Wednesday, state Corrections Department officers were trying to transfer him back to the corrections facility after he was taken to Saint Alphonsus Regional Medical Center for treatment, Boise police said. Meade performed “injurious behavior” Tuesday night while at a maximum-security facility, and prison medical staff determined he needed to be treated at the hospital, where he arrived shortly before 10 p.m. local time, Tewalt said. During the attempt to transfer Meade back to the corrections facility, Umphenour fired at the officers, police said. Two of the officers were shot — one faced non-life-threatening injuries while the other was stable in critical condition following the shooting. The pair then fled the scene, setting off the manhunt that stretched into Thursday afternoon. Security during Meade’s transfer was “augmented” because of his criminal history and Meade was wearing restraints, Tewalt said Thursday. He added he believes staff adhered to department policies. Boise officers also responded to reports of an active shooter at the hospital, which was placed on a modified lockdown at the time of the incident, according to the police department. One of the responding officers fired at an armed person who was at the entrance of the hospital, who was later determined to be a Corrections Department officer, police said. The officer sustained non-life-threatening injuries. Tewalt said Thursday that one of the officers was released from the hospital Wednesday night and that the other two remain at the hospital but are "stable" and "improving." Meade was being held in administrative segregation, a form of restrictive housing that is the highest custody level at the Corrections Department, at the time, Tewalt said Wednesday. The Corrections Department is investigating how this incident could have happened, according to Tewalt. Police said they do not know what the motive was in the case. Authorities said that both Meade and Umphenour are members of the Aryan Knights, “one of multiple security threat groups that we monitor and try to interrupt their activities.” Umphenour has also served time and the men’s sentences overlapped “on and off” at an Idaho maximum security institution from Dec. 29, 2022, to Jan. 17, 2024, Tewalt said. “Their gang involvement doesn’t necessarily indicate that this was a some sort of gang-sanctioned event,” Tewalt said Thursday.
Apple sued by Biden administration in landmark case over iPhone monopoly None - The Biden administration sued Apple on Thursday, alleging the tech giant created a monopoly in the smartphone market by blocking competitors from accessing hardware and software features of the iPhone. The lawsuit, filed by the Department of Justice in federal court in New Jersey, is the latest in a series of efforts by the Biden administration to rein in what it argues is unlawful anticompetitive behavior by some of the nation’s largest tech companies. Sixteen state and district attorneys general joined the DOJ in bringing the case. "We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law," Attorney General Merrick Garland said in a statement announcing the lawsuit. "If left unchallenged, Apple will only continue to strengthen its smartphone monopoly." In the lawsuit, the department claims Apple has used its control over the iPhone to "engage in a broad, sustained, and illegal course of conduct" designed to maintain its control over the smartphone market and prevent its rivals from attracting consumers. Apple strongly rebuked the lawsuit in a statement to ABC News. "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. "This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets." "We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it," Apple added. Among the actions alleged by DOJ, Apple has sought to block the spread of "SuperApps" that make it easier for consumers to switch between smartphone platforms. The DOJ accuses Apple of blocking development of cloud streaming apps and services that would make it easier for consumers to play high-quality games and other apps without paying for accompanying hardware. Apple is also accused of deliberately making the quality of cross-platform messaging worse and less secure to incentivize users of other smartphones like Android to instead switch to an iPhone. Speaking in Washington, D.C., on Thursday, Garland accused Apple of abusing its smartphone dominance to erase competition and hurt consumers. “Over the last two decades, Apple has become one of the most valuable public companies in the world,” Garland said. “That is in large part due to the success of the iPhone.” “Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits but by violating federal antitrust law. Consumers should not have to pay higher prices because companies break the law," Garland added. The lawsuit against Apple adds another confrontation between the Biden administration and big tech over antitrust concerns. In September, the Federal Trade Commission sued Amazon for illegally maintaining its monopoly power "to inflate prices, degrade quality, and stifle innovation for consumers and businesses." Amazon rejected the allegations and vowed to fight the case in court. That same month, the trial began in a case brought by the DOJ against Google in an effort to rein in its dominance over the online search market. Google argued that its success in the sector owed to its superior product.
Justice Department sues Apple, alleging it illegally monopolized the smartphone market None - The Justice Department on Thursday announced a sweeping antitrust lawsuit against Apple, accusing the tech giant of engineering an illegal monopoly in smartphones that boxes out competitors, stifles innovation and keeps prices artificially high By MICHAEL LIEDTKE Associated Press , LINDSAY WHITEHURST Associated Press , FRANK BAJAK Associated Press , and MIKE BALSAMO Associated Press WASHINGTON -- The Justice Department on Thursday announced a sweeping antitrust lawsuit against Apple, accusing the tech giant of engineering an illegal monopoly in smartphones that boxes out competitors, stifles innovation and keeps prices artificially high. The lawsuit, filed in federal court in New Jersey, alleges that Apple has monopoly power in the smartphone market and leverages control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.” “Apple has locked its consumers into the iPhone while locking its competitors out of the market,” said Deputy Attorney General Lisa Monaco. Stalling the advancement of the very market it revolutionized, she said, it has "smothered an entire industry.” Apple called the lawsuit “wrong on the facts and the law” and said it “will vigorously defend against it.” The suit takes aim at how Apple allegedly molds its technology and business relationships to “extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others." That includes diminishing the functionality of non-Apple smartwatches, limiting access to contactless payment for third-party digital wallets and refusing to allow its iMessage app to exchange encrypted messaging with competing platforms. It specifically seeks to stop Apple from undermining technologies that compete with its own apps -- in areas including streaming, messaging and digital payments -- and prevent it from continuing to craft contracts with developers, accessory makers and consumers that let it “obtain, maintain, extend or entrench a monopoly.” The lawsuit — filed with 16 state attorneys general — is just the latest example of aggressive antitrust enforcement by an administration that has also taken on Google, Amazon and other tech giants with the stated aim of making the digital universe more fair, innovative and competitive. “The Department of Justice has an enduring legacy taking on the biggest and toughest monopolies in history,” said Assistant Attorney General Jonathan Kanter, head of the antitrust division, at a press conference announcing the lawsuit. "Today we stand here once again to promote competition and innovation for next generation of technology.” Antitrust researcher Dina Srinavasan, a Yale University fellow, compared the lawsuit's significance to the government's action against Microsoft a quarter century ago — picking a "tremendous fight” with what has been the world's most prosperous company. “It’s a really big deal to go up and punch someone who is acting like a bully and pretending not to be a bully,” she said. President Joe Biden has called for the Justice Department and the Federal Trade Commission to vigorously enforce antitrust statutes. While its stepped-up policing of corporate mergers and questionable business practices has met resistance from some business leaders — accusing the Democratic administration of overreach — it’s been lauded by others as long overdue. The case seeks to pierce the digital fortress that Apple Inc., based in Cupertino, California, has assiduously 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” so its hardware and software can seamlessly offer user-friendly harmony. The strategy has helped Apple attain an annual revenue of nearly $400 billion and, until recently, a market value of more than $3 trillion. But Apple’s shares have fallen by 7% this year even as most of the stock market has climbed to new highs, resulting in long-time rival Microsoft seizing the mantle as the world’s most valuable company. Apple said the lawsuit, if successful, would “hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect” and 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 statement. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. Apple has defended the walled garden as an indispensable feature prized by consumers who want the best protection available for their personal information. It has described the barrier as a way for the iPhone to distinguish itself from devices running on Google’s Android software, which isn’t as restrictive and is licensed to a wide range of manufacturers. “Apple claims to be a champion of protecting user data, but its app store fee structure and partnership with Google search erode privacy,” Consumer Reports senior researcher Sumit Sharma said in a statement. The lawsuit complains that Apple charges as much as $1,599 for an iPhone and that the high margins it earns on each is more than double what others in the industry get. And when users run an internet search, Google gives Apple a “significant cut” of the advertising revenue those searches generate. The company’s app store also charges developers up to 30 percent of the app’s price for consumers. Critics of Apple’s alleged anticompetitive practices have long complained that its claim to prioritize user privacy is hypocritical when profits are at stake. While its iMessage services is sheathed from prying eyes by end-to-end encryption, that protection evaporates the moment someone texts a non-Apple device. But Will Strafach, a mobile security expert, said that while he believes Apple needs reigning in, he's concerned that the Justice Department’s focus on messaging may be misplaced and could weaken security and privacy. “I am quite glad that access to SMS messages is restricted,” said Strafach, creator of the Guardian Firewall app. He notes that a number of apps, ostensibly for weather and news, on iPhones have secretly and persistently sent users' GPS data to third parties. Strafach said he is concerned weakened Apple security "could open the door to stalkerware/spouseware, which is already more difficult to install on Apple devices compared to Android.” However, prominent critic Cory Doctorow has complained that while Apple has blocked entities like Facebook from spying on its users it runs its “own surveillance advertising empire” that gathers the same kinds of personal data but for its own use. “Apple has a history of clandestine deals with surveillance giants like Google, and (CEO) Tim Cook gave Uber a slap on the wrist instead of an app store ban when (the ride-sharing company) built a backdoor to spy on iPhone users who had already deleted Uber’s app,” noted Sean O'Brien, founder of Yale's Privacy Lab. Fears about an antitrust crackdown on Apple’s business model haven't just contributed to the drop in the company’s stock price, there also is concern it lags behind Microsoft and Google in the push to develop products powered by artificial intelligence technology. Antitrust regulators made it clear in their complaint that they see Apple's walled garden mostly as a weapon to ward off competition, creating market conditions that enable it to charge higher prices that have propelled its lofty profit margins while stifling innovation. “Consumers should not have to pay higher prices because companies break the law,,” said Attorney General Merrick Garland. Left unchallenged, Apple would "only continue to strengthen its smartphone monopoly,” he added. William Kovacic, a former chairman of the Federal Trade Commission who teaches at George Washington University, said he expects the core of Apple’s defense to be that it is not at all a monopoly in the smartphone market. Justice Department lawyers have built a “high-quality" argument of harm in the 88-page indictment with “impressive excerpts from the firm's own documents,” he said. But don't expect a verdict until 2026 — which means the case could easily drag on with appeals. The case escalates the Biden administration's antitrust siege, which has already triggered lawsuits against Google and Amazon accusing them in engaging in illegal tactics to thwart competition, as well as unsuccessful attempts to block new acquisitions by Microsoft and Meta Platforms. In addition the FTC sued Facebook in 2020 over its acquisitions of Instagram and WhatsApp. Kovacic predicts antitrust action by the FTC or Justice Department against Microsoft over its relationship with OpenAI is “coming up around the corner,” and “the two agencies are fighting over who will handle that better.” “They foreshadowed this would be their agenda and they're filling out the agenda the way they said,” he added. “These are all high-stakes matters, and you can expect an intense and aggressive defense.” Apple's business interests are also entangled in the Justice Department's case against Google, which went to trial last fall and is headed toward final arguments scheduled to begin May 1 in Washington, D.C. In that case, regulators are alleging Google has stymied competition by paying for the rights for its already dominant online search engine to be the automatic place to handle queries on the iPhone and a variety of web browsers in an arrangement that generates an estimated $15 billion to $20 billion annually. With the Justice Department mounting a direct attack across its business, Apple stands to lose even more. ___ Liedtke reported from San Francisco.
EU legal adviser backs cancellation of EU-Morocco fishing agreement over disputed Western Sahara None - A legal adviser to the European Union’s top court has recommended that it annul Europe's fishing agreement with Morocco, which would have allowed European boats to fish for valuable catch off the coast of the disputed Western Sahara RABAT, Morocco -- A legal adviser to the European Union’s top court recommended Thursday that it annul an agreement with Morocco which would have allowed European boats to fish off the disputed Western Sahara 's coast. The adviser said the agreement didn't fully take into account the consequences on the rights of the people of the disputed territory "to benefit from the natural resources of the waters.” The advocate general for the Court of Justice of the EU backed the court's earlier ruling and recommended it reject appeals that sought to uphold Europe's 2019 Sustainable Fisheries Partnership Agreement with Morocco and send the case back to a lower court. The court in 2021 ruled in favor of the pro-independence Polisario Front that the agreement violated the rights of people in the disputed Western Sahara. The agreement laid out where European vessels with Moroccan permits can fish and included Moroccan-controlled waters west of the disputed territory. Advocate General Tamara Capeta's recommendations concluded that the agreement failed “to treat the territory of Western Sahara as ‘separate and distinct’ from the territory of the Kingdom of Morocco.” But she said that Europe could negotiate with Morocco as the territory's administering power on behalf of residents as long as they're treated separately. The court generally follows recommendations from appointed legal experts like Capeta and Thursday's recommendations strike a blow against Morocco and the European authorities who appealed the ruling. The court will likely consider her recommendations and return with a ruling in the months ahead. Since the four-year accord expired in July, the court's looming decision can shape future agreements, not any in effect. Morocco was not party to the case, though trade associations for its farmers and fishermen backed the appeals. Mustapha Baitas, the country's government spokesperson, underlined on Thursday that the recommendations were non-binding. “The European Union should, by way of its institutions and member states, assume fully its responsibility for the preservation and protection of the partnership with Morocco in the face of provocations and political maneuvers," he said, according to the state news agency MAP. The 2019 Morocco-EU agreement was the latest of a series of accords dating back to 1988 and provided Morocco 208 million euros ($226 million) over four years in exchange for 128 fishing permits, mostly for Spanish boats. The waters off of the disputed Western Sahara's 690-mile (1,110-kilometer) coastline are rich in fish such as sardines and sardinella. Morocco also has fishing agreements with Japan and Russia. The court case is among the ways in which the Polisario Front has pressed its sovereignty claims and put pressure on Morocco's economic and foreign policy agenda. Its legal challenge was among half a dozen it filed in European Court regarding Moroccan exports and trade. In a statement on Thursday, the Polisario Front cautioned that the advocate general's determinations were merely recommendations but it applauded them as favorable, saying “in this legal battle that began a decade ago, great progress has been made.” The agreement under scrutiny pertains to fishing rights off the northwest African coast but the heart of the issue is about land. The status of the disputed Western Sahara has been a major sticking point between Morocco and the EU, which sees North African governments as critical partners in fighting terrorism and managing migration. The EU is Morocco’s biggest trade partner and foreign investor. The territory has been fought over by Morocco and the Algeria-backed Polisario Front since Spain withdrew in 1975. Morocco considers the territory its southern provinces and governs all parts except a sliver near the Algerian border. Thursday's recommendations come as an increasing number of countries, including 15 EU members, shift their stances to back a Moroccan plan that would offer the resource-rich territory wide-ranging autonomy but not a referendum toward potential independence. Though Spain is among the nations that now backs Morocco’s autonomy plan, Polisario Front representatives met with Canary Islands fishermen last summer hoping to strike an agreement to provide their own one-year licenses, Spanish media reported last July. In linked decisions, Capeta also recommended the court not ban the import of tomatoes and melons from the disputed territory to France but require they be labeled as from Western Sahara, not Morocco. She also recommended the court side with a European appeal challenging a ruling rejecting tariffs on Moroccan imports. She said extending a tariff agreement Europe made with Morocco on products from the disputed territory shouldn't be seen as a violation of the Western Sahara's right to self-determination.
Micron, Broadcom rise; Five Below, Designer Brands fall, Thursday, 3/21/2024 None - Stocks that traded heavily or had substantial price changes on Thursday: Micron, Broadcom rise; Five Below, Designer Brands fall Micron, Broadcom rise; Five Below, Designer Brands fall, Thursday, 3/21/2024 The Associated Press By The Associated Press NEW YORK -- Stocks that traded heavily or had substantial price changes on Thursday: Apple Inc., down $7.30 to $171.37. U.S. antitrust authorities accused the iPhone maker of engineering an illegal monopoly in smartphones. Broadcom Inc., up $72 to $1,348. The chipmaker gave investors an encouraging update on its artificial intelligence efforts. Micron Technology Inc., up $13.60 to $109.85. The chipmaker gave investors a surprisingly strong financial forecast for the current quarter. Five Below Inc., down $32.18 to $176.79. The discount retailer gave investors a disappointing earnings forecast for the year. Darden Restaurants Inc., down $11.34 to $163.24. The owner of Olive Garden and other chains cut its revenue forecast for the year. Designer Brands Inc., down 63 cents to $10.89. The footwear and accessories retailer gave investors a weak earnings forecast. Chewy Inc., down $1.82 to $15.92. The online pet supply retailer gave investors a weak sales forecast for the current quarter. Academy Sports and Outdoors Inc., down $6.82 to $64.43. The sporting goods retailer gave investors a disappointing earnings forecast for the year.
Japan’s space agency says it hopes to forge a profitable launch business with its new H3 rocket None - Japan’s space agency and its prime contractor say they hope to be able to forge a profitable launch business with their new H3 rocket after its first successful flight last month in an increasingly competitive market dominated by Space X Japan’s space agency says it hopes to forge a profitable launch business with its new H3 rocket TOBISHIMA, Japan -- Japan’s space agency and its prime contractor said Thursday they hope to be able to forge a profitable launch business with their new H3 rocket after its first successful flight last month in an increasingly competitive market dominated by Space X. Japan Aerospace Exploration Agency and Mitsubishi Heavy Industries have been developing the H3 as a successor to the soon-to-retire current mainstay H-2A, which enjoyed a 98% success rate but its high launch cost made it less competitive in the global market. Mayuki Niitsu, MHI's H3 rocket project manager, said it plans at least six launches a year to meet rapidly growing demand for communication, observation and security satellites. “Today, the commercial market has a big demand for rockets, and there is a substantial shortage of rockets," he said, standing next the rocket's second stage at a news conference. “Space X is virtually dominating the market right now, but I believe there are high expectations of our role as an alternative.” An H3 rocket successfully reached orbit and released two small observation satellites on Feb. 17 following a failed debut launch last year in which the second-stage engine did not ignite. Mitsubishi Heavy will eventually take over H3 production and launches from JAXA and hopes to make it commercially viable. The H3 rocket’s first and second stages were shown to the media before their planned shipment later this week to the Tanegashima Space Center in southwestern Japan for final assembly with the main engines and a fairing. When combined, the rocket will be 57 meters (187 feet) long. The H3 is designed to carry larger payloads than the H-2A at about half its launch cost, or about 50 billion yen ($330 million), to be globally competitive. That, however, is still considered expensive, and MHI officials say they hope to achieve better price competitiveness after about a dozen launches. Niitsu said there are other ways to be competitive, for example by providing flexible launch schedules and being better at meeting clients' needs. In January, a H-2A rocket successfully placed a spy satellite into orbit, and days later JAXA's unmanned spacecraft SLIM made the world's first “pinpoint” moon landing.
Microsoft hires influential AI figure Mustafa Suleyman to head up consumer AI business None - Microsoft has hired Mustafa Suleyman to head up its consumer artificial intelligence business, adding to its ranks an influential figure to cement its position at the forefront of the booming AI industry LONDON -- Microsoft has hired Mustafa Suleyman to head up its consumer artificial intelligence business, adding another influential figure to its pool of talent leading the charge to build a technology that Suleyman views as both as a boon and threat to humanity. Suleyman, co-founder of AI research lab DeepMind, said Tuesday in a LinkedIn post that he'll become CEO of Microsoft AI, leading all of the company's consumer AI products and research, including its generative AI service Copilot as well as its Bing search engine and Edge browser. Microsoft is also hiring the chief scientist at Suleyman's AI company, Inflection, and several of its top engineers and researchers, Microsoft CEO Satya Nadella said in a blog post. The hirings are likely to bolster Microsoft's lead position in the AI industry, as big tech companies battle for position to capitalize on demand for AI services. Microsoft has teamed up with ChatGPT maker OpenAI, investing billions of dollars into the San Francisco company, and recently partnered with France's Mistral, a hot AI startup. Suleyman co-founded the DeepMind AI research lab, which Google purchased in 2014, and worked there until 2022, when he left to set up Inflection.ai with LinkedIn co-founder Reid Hoffman in an effort to create AI that won’t veer into racist, sexist or violent behavior. He also co-wrote a book, “The Coming Wave,” that examines AI’s promise and the need to limit its potential perils. __ This story corrects the day of the announcement to Tuesday instead of Monday.
UFC settles wage suppression allegations for $335 million before trial None - The agreement was announced in a TKO company filing. TKO, the parent company of Ultimate Fighting Championship, will pay $335 million to settle a class action lawsuit over wage suppression, according to a company filing Wednesday. "On March 13, 2024, TKO reached an agreement to settle all claims asserted in both class action lawsuits for an aggregate amount of $335 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time," TKO said in a filing with the Securities and Exchange Commission. Marlon Vera (blue gloves) fights Sean O'Malley (red gloves) during UFC 299 at Kayesa Center in Miami, March 9, 2024. Sam Navarro/USA TODAY Sports via Reuters, FILE The settlement comes just weeks before a trial was to begin April 15. At issue were allegations that UFC used long-term contracts to delay or prevent free agency by hundreds of fighters and coerced them into signing deals that prevented them from maximum earning potential. The lawsuit was originally filed against Zuffa LLC, the former name of the owners of UFC, in December 2014. Zuffa was later purchased by Endeavor, which merged with World Wrestling Entertainment in April 2023 and was renamed TKO Group Holdings. The original lawsuit included fighters Cung Le, Nathan Quarry and Jon Fitch and expanded to include fighters such as Brandon Vera and others. The lawsuit was granted class action status in August 2023. The U.S. District Court for the District of Nevada had denied the UFC's motion for a summary judgment in the case on Jan. 18, opening the door to the trial beginning in April.
Should you sell your home now or wait for the Realtor settlement this summer? None - New York CNN — Listing your home in the spring used to be a no-brainer. But a major real estate shakeup is complicating the equation. That shakeup is coming from a $418 million settlement the National Association of Realtors announced last week with groups of homesellers that could go into effect as early as July. The settlement will eliminate the long-standing standard 6% commission paid by the seller, which could ultimately make it cheaper to sell your home post-settlement. But is it worth waiting to list your home and potentially risking a sale? Why’s spring such a popular time to buy a home, anyway? Would you rather be unloading boxes from a moving truck in a potential snowstorm or heatwave as opposed to when it’s a pleasant 60-degree day? That’s one of the main reasons spring has been the most popular season to buy a home. For families with children, it’s also an ideal time to close on home because it would allow them to stay in the same school. By springtime, people are also more likely to have paid off any debt they took on over the holidays, said Phil Crescenzo Jr., the southeast division vice president at Nation One Mortgage Corporation. The case for getting in on spring homebuying season The settlement could present a major downside to homebuyers. Under the current system, the buyer’s agent’s commission is baked into the total they pay for a home. That meant buyers could pay that added cost over the entire length of their mortgage. But after the settlement is finalized, many may have to pay flat fees upfront to agents. That would add to the financial burden for homebuyers – especially first-timers. And that’s on top of coming up with all the money they need for a home downpayment, closing costs, a lawyer and all the other fees associated with buying a home. Buyers, therefore, may have more of an incentive to close on a home sooner rather than later. There’s also no guarantee a federal court will sign off on the settlement as is. The unknowns associated with that are enough of a reason not to wait to list your home, said Crescenzo. From conversations he’s had with real estate agents, he said he’s not seeing any signs that the NAR settlement is delaying listing activity. “There is no reason to wait,” Mike Downer, a broker associate with Coldwell Banker Realty in Naples, Florida. “The seller does not currently need to provide any compensation to the buyer’s agent.” The case for waiting until the summer The biggest advantage of waiting to list your home until the settlement is finalized is being able to negotiate an agent’s commission down more than they otherwise would’ve been able to. On top of that, they may be able to avoid having to pay the buyer’s agent’s commission. That could allow them to pocket thousands of dollars more on the sale of their home. If selling your home boiled down to a business decision, Mike Downer, a broker associate with Coldwell Banker Realty in Naples, Florida, said he’d try to list it as soon as possible. “If I am trying to test the market, there would be no need to list it [now],” he added. But in his view, the NAR settlement shouldn’t be a major consideration when it comes to timing. “An agent who provides value will always be worth more than an agent who does not provide value,” because they can help you net more money for the sale of your home, he said.