Apple’s New Developer Fees Face EU Antitrust Scrutiny

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Apple’s newly introduced fees for app developers are drawing heightened scrutiny from European Union (EU) antitrust regulators, according to a Bloomberg report on Monday. The investigation centers on Apple’s new “core technology fee,” which charges developers €0.50 ($0.51) per app installation, raising concerns about potential cost inflation for software makers.

The EU regulators have reportedly distributed a fresh round of questionnaires as part of their inquiry, examining whether the new fees align with the bloc’s Digital Markets Act (DMA). The DMA, aimed at curbing the power of major tech platforms, restricts certain practices and imposes fines of up to 10% of a company’s annual revenue for violations.

Key Concerns Under Investigation

Officials are investigating whether Apple’s fee structure might result in higher costs for consumers or force developers to alter their business models. They are also questioning Apple’s claim that the new system will reduce costs for developers.

The timing of this scrutiny coincides with calls from Big Tech leaders in the U.S. for President-elect Donald Trump to push back against the EU’s regulatory actions targeting American technology firms.

Apple’s Regulatory Challenges

Apple has been under increasing pressure from regulators in both the U.S. and Europe over the fees it imposes on third-party developers using its App Store. While Apple maintains that 85% of developers on its platform pay no commission, the newly introduced fees have raised fresh concerns about compliance with the DMA.

Shares of the Cupertino-based tech giant fell by 1.8% in early trading following the news. Neither Apple nor the European Commission provided immediate comments on the matter.

 

OpenAI Calls for U.S. Investment and Regulation to Maintain AI Leadership Over China

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OpenAI released its “Economic Blueprint” on Monday, emphasizing the need for the U.S. to attract investment and implement strategic regulations to retain its dominance in artificial intelligence (AI) as competition with China intensifies. The 15-page document outlined essential steps for the U.S. to secure its position, highlighting the importance of chips, data, and energy as critical components in the global AI race.

The release of this vision comes just ahead of President-elect Donald Trump taking office, whose administration is anticipated to be more supportive of the tech sector. David Sacks, a former PayPal executive, is expected to play a key role as the administration’s AI and crypto policy lead. OpenAI CEO Sam Altman, who donated approximately $1 million to Trump’s inaugural fund, joins other industry leaders in seeking to establish closer ties with the new administration.

Calls for Investment and Regulation

OpenAI warned that an estimated $175 billion in global funds is poised for investment in AI projects, stressing that the U.S. must act swiftly to attract these resources. “If the U.S. doesn’t secure these funds, they will flow to China-backed projects, strengthening the Chinese Communist Party’s global influence,” the blueprint stated.

The company also proposed export controls on advanced AI models to prevent their misuse by adversarial nations. This move aligns with growing concerns about how AI technologies could be weaponized or otherwise used to undermine global stability.

Washington Push and Funding Strategy

OpenAI plans to host an event in Washington, D.C., later this month to further discuss its recommendations and rally support for its initiatives. This advocacy comes as the Microsoft-backed startup aims to expand its funding base. OpenAI raised $6.6 billion last year and is looking to convert into a for-profit business model to sustain its growth in the increasingly competitive and costly AI sector.

As part of its vision, OpenAI urged the U.S. to establish a national framework for AI regulation, which would balance innovation with security concerns. Such a framework would also help cement the U.S.’s leadership in shaping global AI standards.

 

U.S. Supreme Court Declines to Hear Oil Companies’ Appeal in Honolulu Climate Lawsuit

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The U.S. Supreme Court on Monday rejected an appeal by Sunoco and several other major oil companies to dismiss a lawsuit filed by Honolulu, which accuses the corporations of misleading the public for decades about the environmental risks of burning fossil fuels.

The oil companies, which include Exxon Mobil, BP, Shell, ConocoPhillips, BHP Group, Marathon Petroleum, and Chevron, sought to overturn a decision by Hawaii’s Supreme Court that allowed the lawsuit, filed under state law, to proceed. The lawsuit was initially brought forward in 2020 by the city and county of Honolulu, along with the Honolulu Board of Water Supply.

Lawsuit Claims and Damages

Honolulu’s lawsuit alleges that the oil companies knowingly made deceptive statements regarding the environmental impact of their fossil fuel products, contributing to damages caused by human-induced climate change. Among the cited damages are heat waves stressing the city’s electrical grid and the necessity to retrofit a wastewater treatment facility to counter rising sea levels, an expense estimated at hundreds of millions of dollars.

The plaintiffs argue that the defendants have been aware for over 50 years of the significant adverse effects of greenhouse gas emissions, including rising sea levels and extreme weather events. Rather than addressing these consequences, the lawsuit claims the companies promoted false information, undermined public awareness of climate risks, and intensified the production and use of fossil fuels.

Ben Sullivan, an official from Honolulu’s Office of Climate Change, Sustainability, and Resiliency, welcomed the Supreme Court’s decision, stating, “This landmark decision upholds our right to enforce Hawaii laws in Hawaii courts, ensuring the protection of Hawaii taxpayers and communities from the immense costs and consequences of the climate crisis caused by the defendants’ misconduct.”

Broader Legal Context

Honolulu’s case is part of a broader wave of lawsuits filed by U.S. jurisdictions seeking financial compensation from fossil fuel companies for their role in climate change. The lawsuit highlights projected consequences for Honolulu, including significant sea level rise, coastal flooding, beach erosion, and intensified extreme weather events.

The oil companies have argued that such claims fall under federal jurisdiction, as regulating interstate emissions or commerce is the purview of the federal government. However, Hawaii Circuit Court Judge Jeffrey Crabtree rejected this argument, a decision upheld by Hawaii’s Supreme Court in October 2023.

The defendants previously sought to move the case to federal court but were denied by the U.S. Supreme Court in April 2023.