Today’s top stories
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Werner Hoyer, the European Investment Bank’s former president, is under investigation for corruption, abuse of influence and misappropriation of EU funds, allegations he described as “absurd and unfounded”. The EIB is the EU’s lending arm and the largest multilateral development lender in the world.
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Israeli Prime Minister Benjamin Netanyahu, in his first Hebrew-language interview since October 7, laid out his vision for a long, hot summer in the Middle East: continued fighting in Gaza, no permanent ceasefire to secure the return of hostages and potential escalation with Hizbollah in Lebanon.
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TikTok’s biggest advertisers are drawing up contingency plans, as the US prepares to ban the popular video app if its Chinese parent does not divest its US business.
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Good evening.
Today was a landmark moment in the regulation of Big Tech, as the EU accused Apple of stifling competition in its App Store in the first charges brought under its new digital rules.
Under the Digital Markets Act, which came into effect for tech groups in March and aims to force the big “online gatekeepers” to open up their businesses to competition, the iPhone maker could be hit with a fine of 10 per cent of its global annual revenue — with the amount doubling if the offence is repeated.
The EU is also looking into whether Google owner Alphabet is unduly favouring its own app store and Facebook owner Meta’s use of personal data for advertising.
Apple has been experiencing a torrid time at the hands of EU regulators as of late.
Earlier this year it was fined €1.8bn for stifling competition from rival music streaming services and has just settled a probe into “tap-and-go” payments, offering concessions to rivals that will help it avoid fines. Last week, it said it was delaying the rollout of the iPhone’s flagship new artificial intelligence features in Europe because of the “uncertainties” around Brussels’ new competition rules (a concern echoed by Booking.com, which last week slammed the “dumb” regulatory burdens).
Scrutiny of Apple is also increasing across the Atlantic, with regulators recently bringing an antitrust case against the company for allegedly using its power in the smartphone sector to squash rivals and limit consumer choice.
The race to compete in AI is also rising up the regulatory agenda. Top US antitrust enforcer Jonathan Kanter told the Financial Times recently that he was looking “with urgency” into concerns that power over the transformative technology was being concentrated among a few deep-pocketed players. American regulators, along with their counterparts in the EU and the UK, are already looking into Microsoft’s multibillion-dollar investment into OpenAI.
But it is in Europe where Big Tech, especially Microsoft, has been really feeling the heat, writes EU correspondent Javier Espinoza, fighting some of the most high-profile antitrust probes since its clashes in the 2000s. These include a battle over its Teams software, which could also end up with official charges this week.
However, the current tussles end up, it’s clear, writes Henry Foy in today’s Europe Express newsletter (for Premium subscribers), that the EU thinks the time is right to hit Big Tech, hard.
Need to know: UK and Europe economy
Chief economics commentator Martin Wolf hit out at the absence of honesty in the UK general election, which he said could undermine democracy itself. Some economists believe Labour’s economic forecasts are too optimistic. The Institute for Fiscal Studies think-tank said both main parties’ plans to improve public services were “essentially unfunded”.
Most onshore UK renewables projects fail to get beyond the planning stage, according to new analysis, highlighting the task facing the country as it tries to hit clean energy targets.
The French head of Euronext, Europe’s biggest stock exchange group, said business should stay calm about France’s forthcoming election, arguing extremist parties would struggle to implement their agendas if elected. An FT poll showed voters trusted Marine Le Pen’s RN the most on the economy. Our weekend essay looks at the likelihood of France falling to populism.
The FT editorial board said Ukraine needed to stare down bondholders and seek a 40 per cent debt reduction if it was to keep standing up to Russia. The EU has come up with a legal loophole to stop Hungary from vetoing support for Ukraine.
Need to know: Global economy
US millionaires have signalled their support for President Joe Biden’s plan to make the wealthiest Americans pay more tax, according to a new poll.
Biden’s flagship hydrogen project, however, is facing growing opposition from environmentalists and local sceptics. Clean hydrogen has been touted for its potential to green hard-to-abate sectors, such as shipping and cement production.
China has agreed to talks with the EU over tariffs on electric vehicles, during a visit to Beijing by Germany’s vice-chancellor aimed at soothing tensions.
Ghana agreed on a deal that will wipe nearly 40 per cent off the value of $13bn in international bonds, putting the west African nation on the way to ending almost two years of default on its debt.
Need to know: Business
At least $10tn of insurance cover is needed to reach net zero, according to a new report, putting the industry under “unprecedented structural pressures”. The new cover will be required for the energy, road transport and building sectors, including huge infrastructure projects such as offshore wind and solar farms.
Linda Yaccarino has shaken up her management team at X as the social media platform tries to boost sales and cut costs, a year after she became chief executive.
Australia is tightening regulation of the country’s powerful supermarkets, with the threat of billions of dollars in fines for price gouging. Analysts say the penalties could be as much as A$5bn for Woolworths and A$4bn for Coles Group.
Global tech companies and local start-ups are looking to unlock lucrative new markets in India with AI platforms adapted for the country’s vast range of languages. New tools are aimed at fast-growing industries such as customer services and call centres.
The World of Work
How will “multi-gig” professionals who have taken on extra jobs while working from home cope with the demand to return to the office? Trouble is brewing, warns US businesswoman Meredith Whitney.
In the meantime, sales of “mouse jigglers” and other devices aimed at emulating work have surged among those toiling at home. But are there better ways for bosses to monitor their staff and help them manage the clash of domestic and work responsibilities?
Does pay transparency work? Soumaya Keynes talks to Harvard Business School professor Zoe Cullen on the Economics Show podcast.
LinkedIn used to be a straightforward tool to connect job hunters and employers, but as lines between home and work blurred during the pandemic, the site moved from strictly business to personal. The pivot, however, is missing one key element, says columnist Emma Jacobs: a sense of humour.
Some good news
What does a city that has spurned cars look like? Olympics visitors to Paris will get the chance to find out after city officials said measures to encourage other forms of transport had led to a 40 per cent drop in air pollution.
Read the full article here