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EU regulators fining Apple €1.8 billion over Apple Music

The European Commission, the European Union’s executive arm, on Monday hit Apple with a 1.8 billion euro ($1.95 billion) antitrust fine for abusing its dominant position on the market for the distribution of music streaming apps.

The commission said it found that Apple had applied restrictions on app developers that prevented them from informing iOS users about alternative and cheaper music subscription services available outside of the app.

Apple also banned developers of music streaming apps from providing any instructions about how users could subscribe to these cheaper offers, the commission alleged.

This is Apple’s first antitrust fine from Brussels and is one of the biggest dished out to a technology company by the EU.

Apple shares were down around 2.5% in morning trading in the U.S.

The European Commission opened an investigation into Apple after a complaint from Spotify in 2019. The probe was narrowed down to focus on contractual restrictions that Apple imposed on app developers which prevent them from informing iPhone and iPad users of alternative music subscription services at lower prices outside of the App Store.

Apple’s conduct lasted almost 10 years, according to the commission, and “may have led many iOS users to pay significantly higher prices for music streaming subscriptions because of the high commission fee imposed by Apple on developers and passed on to consumers in the form of higher subscription prices for the same service on the Apple App Store.”

Apple response

In a fiery response to the fine, Apple said Spotify would stand to gain the most from the EU pronouncement.

“The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation,” Apple said in a statement.

“Today, Spotify has a 56 percent share of Europe’s music streaming market — more than double their closest competitor’s — and pays Apple nothing for the services that have helped make them one of the most recognisable brands in the world.”

Apple said that a “large part” of Spotify’s success is thanks to the Cupertino, California-based giant’s App Store, “along with all the tools and technology that Spotify uses to build, update, and share their app with Apple users around the world.”

Apple said that Spotify pays it nothing. That’s because instead of selling subscriptions in their iOS app, Spotify sell them via their own website stead. Apple does not collect a commission on those purchases.

Developers over the years have spoken out against the 30% fee Apple charges on in-app purchases.

Spotify in a statement called the commission’s decision “an important moment in the fight for a more open internet for consumers.”

“Apple’s rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits—denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks,” Spotify said.

“Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour.”

Apple fine just a ‘parking ticket’

The commission said Apple prevented developers of music streaming apps from informing their iOS users within their apps about prices of subscriptions or offers available elsewhere.

App developers could not include links in their apps leading iOS users to the app developers’ websites where alternative subscription could be bought, the commission alleges.

The EU’s executive arm also said Apple prevented app developers from contacting their own newly acquired users — for example via email — to inform them about alternative pricing options.

In a press briefing, EU antitrust chief Margrethe Vestager qualified the basic amount of the fine for Apple, excluding the 1.8 billion euro lump sum, as “quite small” and likened it to a “speeding ticket, or a parking ticket” relative to the company’s scale.

“When Apple imposes these anti-steering provisions on the music provider, they as developers have no other choice than to either accept them or abandon the App store. Apple with its App Store currently holds a monopoly,” Vestager said.

She added the commission has ordered Apple to remove the so-called anti-steering provisions and to “refrain from similar practices in the future.”

EU scrutiny on tech giants rises

The fine will ramp up tensions between Big Tech and Brussels at a time when the EU is increasing scrutiny of these firms.

Last year, the commission designated Apple among other tech firms like Microsoft and Meta as “gatekeepers” under a landmark regulation called the Digital Markets Act, which broadly came into effect last year.

The term gatekeepers refers to massive internet platforms which the EU believes are restricting access to core platform services, such as online search, advertising, and messaging and communications.

The Digital Markets Act aims to clamp down on anti-competitive practices from tech players, and force them to open out some of their services to other competitors. Smaller internet firms and other businesses have complained about being hurt by these companies’ business practices.

These laws have already had an impact on Apple. The company announced plans this year to open up its iPhone and iPad to alternative app stores other than its own. Developers have long complained about the 30% fee Apple charges on in-app purchases.

Vestager fired a warning shot to Apple in regard to the DMA.

“In a couple of days on the 7th of March, Apple will have to comply with the full list of dos and don’ts under the DMA. Among others, Apple can no longer impose rules such as the anti-steering obligations … and this holds for any app on the App Store, not just music streaming apps.”

— CNBC’s Ryan Browne and Ruxandra Iordache contributed to this article.

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Bitcoin bounces back above $95,000 as investors eye $100,000 milestone heading into Thanksgiving holiday

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Bitcoin bounces back above ,000 as investors eye 0,000 milestone heading into Thanksgiving holiday

Bitcoin on Wednesday climbed back above $95,000, recovering slightly from a pullback this week that knocked it from record levels.

The price of the flagship cryptocurrency was last higher by 5% at $95,886.00, according to Coin Metrics, while ether jumped more than 7% to $3,555.82. The broader crypto market, as measured by the CoinDesk 20 index, gained 5%.

Although bitcoin is widely viewed as a store of value and a digital alternative to gold, the cryptocurrency often trades in tandem with the stock market. On Wednesday, however, it decoupled with the tech-heavy Nasdaq Composite, which was lower by 1%. The Dow Jones Industrial Average and S&P 500 dropped as well.

Coinbase was up more than 2% as bitcoin lifted it along with other crypto stocks. Robinhood – which offers crypto trading and is viewed as a beneficiary of a more crypto-friendly environment in the incoming Trump administration, gained 4%. MicroStrategy, which trades as a proxy for bitcoin, advanced 7%.

Bitcoin has been regularly hitting records since the Nov. 5 election, up about 38% in that time. On Friday, it rose as high as $99,849.99 before testing the $90,000 support level this week.

“The bitcoin bull market has legs,” Alex Thorn, head of firmwide research at Galaxy Digital, said in a report Wednesday. “There will be corrections and hiccups, which is normal. There could even some twilight regulatory or law enforcement actions from the outgoing Biden administration that jitter markets. But a combination of increasing institutional, corporate, and potentially nation-state adoption, a new U.S. administration that is shaping up to be extremely pro-bitcoin, and solid positioning and network data all point to higher over the near and medium term.”

Fairlead Strategies’ Katie Stockton told CNBC’s “Squawk Box” on Monday that, at current levels, bitcoin investors are in “unchartered territory in terms of where there’s resistance – which, of course, there is none.” Meanwhile, support is around $74,000. Bitcoin reached $92,000 for the first time ever just two weeks ago, on Nov. 13.

“Bitcoin does tend to stair step both to the downside and to the upside, meaning that it sees these very sharp run ups and then consolidates,” she said. “People should … be willing to give bitcoin, and the cryptocurrencies in general, more room — because of the volatility there and also because of the long-term potential.”

Bitcoin is up 124% for the year and is still widely expected to reach the $100,000 milestone before the year is over. Ether, the outperformer since the election, is trailing bitcoin on a year-to-date basis with a 55% gain.

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Generative AI’s hype has yet to lead to a must-have gadget for the holiday season

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Generative AI's hype has yet to lead to a must-have gadget for the holiday season

Ray-Ban Meta smart glasses

Meta

Shoppers looking for gadgets and gizmos powered by generative AI technology to gift to their loved ones won’t have many options to choose from this holiday season.

Generative artificial intelligence has taken Silicon Valley by storm since the launch of OpenAI’s ChatGPT chatbot in November 2022. Although startups have raised billions to build new GenAI tools and tech giants have bought millions of Nvidia processors to train AI models, few companies have delivered new hardware built with the new-age tech as its focal point.

There was a lot of optimism over the potential of GenAI gadgets at the CES trade show in January, said Paul Gagnon, vice president for analyst firm Circana. In particular, products from high-profile startups such as Humane and Rabbit, which were marketed as being able to translate, answer questions, take voice memos and set alarms, were drawing buzz, Gagnon said.

But many of these new GenAI devices didn’t work as well as people expected, with reviewers saying that the gadgets were too slow and too prone to failure.

“As we’ve gone through the year, and those kinds of promises — which I’ll be honest, were pretty nebulous to start with — there’s been a bit of a struggle with communicating that to consumers,” Gagnon said.

A key reason GenAI hardware hasn’t had a breakthrough is that current devices are “compute restrained,” meaning they require more powerful silicon chips and related components to perform better, particularly when compared with smartphones, said Ben Bajarin, CEO of Creative Strategies, a market research firm.

Additionally, consumers may find current GenAI devices too expensive, and they may be confused about what the devices can actually do, he said.

GenAI devices, such as the Ray-Ban Meta smart glasses, also typically require a smartphone connection for an accompanying app as well as strong internet access, because a bad internet connection can lead to performance delays that frustrate people, Bajarin said.

While companies such as Microsoft, Apple, Intel, Dell and Lenovo have also heavily marketed new lineups of personal computers capable of performing GenAI tasks, consumers have yet to perk up to the sales pitch, said Ryan Reith, an IDC program vice president for mobile devices.

“I don’t think that there’s actually a need for consumers to go out and get one of these more expensive PCs,” Reith said, noting that people may be confused about why they need beefier computers when they can already access tools such as ChatGPT through their current PCs. 

The reality is that while GenAI has captivated Silicon Valley, it’s still “inning zero” in regard to widespread adoption, Bajarin said.

“Even though I can rattle off all these productivity stats of how people are using AI today, it’s a very small number of people,” he said. “This is not mainstream.”

It may not be until 2025 that consumers see a “big explosion” in GenAI computers, smartphones and new gadgets, said Steve Koenig, vice president of research at the Consumer Technology Association, which produces CES.

Despite Silicon Valley not having a breakout year for GenAI hardware, here are a few GenAI devices early adopters can buy.

Ray-Ban Meta glasses

Rabbit r1

The Rabbit r1 is a $200 gizmo that looks like an orange, miniaturized tablet with a playful aesthetic that’s more Nintendo Switch than Apple iPad. 

Outfitted with a camera and dual mics, the r1 can record audio clips and set timers or perform more advanced tasks, such as helping users recall details from past conversations, search results and voice recordings. After the device began shipping in March, reviewers criticized the r1 for stumbling at various tasks and failing to outshine smartphones that can do many of the same functions. 

The startup “has used that feedback to rapidly make very significant improvements to the user experience” and has released scores of updates to improve, Rabbit CEO Jesse Lyu told CNBC in a statement.

Despite the harsh reviews, Rabbit has “sold more than 100,000 r1 devices when we originally expected to sell only 3,000” and the company is “seeing a return rate of less than 5%, which is very solid for a first-generation product,” Lyu said. 

Rabbit is currently running a deal that gives shoppers free shipping, or $15 off, if they order an r1 by Dec. 4.

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Former Apple designers launch $699 Humane Ai Pin as smartphone replacement

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Just Eat Takeaway to delist from London Stock Exchange in blow to UK market

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Just Eat Takeaway to delist from London Stock Exchange in blow to UK market

Just Eat Takeaway said it was delisting its shares from the London Stock Exchange due to the “low liquidity and trading volumes” of its shares on the exchange.

Mike Kemp | In Pictures | Getty Images

Just Eat Takeaway will delist from the London Stock Exchange next month, in a blow to the U.K.’s ambitions to attract more high-growth tech firms to its stock market.

After completing a review of optimal listing venues, the Anglo-Dutch food delivery firm said Wednesday that it intends to delist from London’s stock exchange, making Amsterdam Just Eat Takeaway.com’s sole trading venue.

Explaining its decision, Just Eat Takeaway said it was delisting its shares from the LSE in a bid to “reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing, and in the context of low liquidity and trading volumes.”

Just Eat Takeaway shares slipped 1.5% following the delisting announcement.

It has requested that the LSE and the Financial Conduct Authority, the U.K.’s markets watchdog, cancel its listing, so that it can remain primarily listed on the Amsterdam exchange.

The delisting will become effective from 8 a.m London time on Dec. 27, while Dec. 24 will mark the last date of trading of Just Eat Takeaway’s shares on the LSE.

Earlier this month, Just Eat Takeaway.com said it would sell its GrubHub arm to New York-based online takeout startup Wonder for $650 million — a huge discount compared to the $7.3 billion the firm paid for the U.S. food delivery app.

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