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- EU Takes a Bite Out of Apple
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Happy Monday! Let’s have a great week:
👉 Apple fined by EU
👉 Reddit sets IPO valuation
👉 Huge week for China
APPLE: Fined By EU
On Monday, the European Commission fined Apple $1.95 billion for unfairly monopolizing the music streaming app market. The Commission found Apple limited app developers from telling users about cheaper music services outside its app. Apple also stopped developers from guiding users on how to get these cheaper services.
Source: MacRumors
This is Apple's first fine from the EU, making it one of the biggest fines against a tech company by the EU. The investigation started in 2019 after Spotify complained about Apple's rules that stopped developers from offering cheaper alternatives to Apple's App Store prices. The Commission said Apple's actions for over ten years have made users pay more for music streaming because of Apple's high fees on developers. Apple argued that Spotify's success partly comes from using Apple's App Store, which doesn't earn Apple any money from Spotify subscriptions sold on Spotify's website. Many developers have criticized the 30% fee Apple charges for in-app purchases.
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REDDIT: Sets IPO Valuation
Reddit is preparing for an IPO with a target valuation of around $6.5 billion, planning to sell shares at $31 to $34 each. The company is aiming to list on the New York Stock Exchange under the symbol RDDT and was valued at $10 billion in 2021. In 2023, it reported $804 million in revenue, a 20% increase from the previous year, with losses around $90.8 million.
Source: Inc
Key investors include Sam Altman, whose early investment could now be worth over $400 million, Tencent, and Condé Nast's parent company. Reddit is also offering its community moderators a chance to buy shares at the IPO price and is adjusting its data licensing as part of its business model. This marks a significant event in a slow IPO market. This is the first major tech and social media IPO since Pinterest in 2019.
CHINA: Huge Week
China is gearing up to set its 2024 economic growth goal and share its plan to boost the slowing economy at its major political meeting this week. Premier Li Qiang will give a key report at the National People’s Congress, marking his first time in this role. The focus is on recovering from a tough year marked by economic issues like deflation, a real estate crisis, rising debt, and the loss of foreign investments.
Source: NPR
The government aims for about a 5% growth rate, the same as last year. Investors are eager to see the government's plans for economic stimulus, shifting away from reliance on real estate to other growth areas and increasing consumer spending.
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