Apple Faces EU Antitrust Complaint Over App Store and iOS Restrictions

/in /tarafından

Apple is facing a new antitrust complaint in the European Union, filed jointly by civil rights organizations Article 19 and Germany’s Society for Civil Rights. The complaint, submitted to the European Commission, accuses Apple of breaching the Digital Markets Act (DMA) through restrictive App Store terms and device policies that limit interoperability and competition.

The complaint argues that Apple’s conditions for developers — including a €1 million stand-by letter of credit (SBLC) — create barriers for small and medium-sized enterprises seeking to distribute or install third-party apps on iOS and iPadOS. The groups claim such practices violate the DMA’s goal of ensuring fair access and consumer choice in digital markets.

Apple rejected the allegations, stating that its rules protect users and developers by maintaining high security and quality standards. The company said it had proposed changes to its credit requirements, but that the European Commission asked it not to proceed.

The European Commission confirmed it is reviewing the complaint as part of its ongoing supervision of “gatekeeper” companies under the DMA. The law allows regulators to impose fines of up to 10% of a company’s global annual revenue for noncompliance — a significant threat for Apple, which was fined €500 million earlier this year for other App Store violations.

IBM’s Cloud Growth Slows Despite Strong AI Mainframe Demand and Solid Q3 Results

/in /tarafından

IBM reported third-quarter revenue and profit that beat market expectations, but investor optimism dimmed as growth in its key cloud software division slowed. The company’s shares fell 5% in after-hours trading, despite strong results driven by soaring demand for its new AI-powered mainframe systems.

Revenue in the hybrid cloud unit, which includes Red Hat, rose 14% compared to 16% in the previous quarter — a slowdown that raised investor concern about IBM’s ability to fully capitalize on the global cloud boom. Total quarterly revenue reached $16.33 billion, surpassing analyst estimates of $16.09 billion, according to LSEG data.

CEO Arvind Krishna said IBM expects Red Hat’s growth to return to mid-teen levels by 2026. Analysts noted that the deceleration in software sales may disappoint investors, given the segment’s high margins. However, IBM’s infrastructure division, housing its mainframe business, was a standout performer with revenue up 17% to $3.56 billion.

The new mainframe, optimized for AI workloads, is being widely adopted in the financial sector due to its data security and encryption strengths. IBM’s total AI-related business has grown to $9.5 billion, up $2 billion from the previous quarter. The company raised its full-year outlook, now expecting revenue growth above 5% at constant currency.

Meta to Cut 600 Jobs in Superintelligence Labs as AI Unit Restructures

/in /tarafından

Meta announced plans to cut approximately 600 positions within its Superintelligence Labs division, part of a restructuring aimed at making the company’s artificial intelligence operations more agile and efficient. The layoffs will impact teams across Facebook Artificial Intelligence Research (FAIR), product-related AI, and AI infrastructure, according to the company.

Meta said affected employees are encouraged to apply for other internal roles. However, the newly created TBD Lab — a smaller group of researchers and engineers developing next-generation foundation models — will remain untouched. Chief AI Officer Alexandr Wang emphasized that the reduction in staff would streamline decision-making and increase each member’s scope and influence.

The reorganization follows a period of leadership turnover and mixed reception to Meta’s Llama 4 open-source model. The company recently consolidated all AI initiatives under the Superintelligence Labs umbrella to accelerate progress in foundational and applied AI research.

Separately, Meta secured a $27 billion financing agreement with Blue Owl Capital to fund its largest data center project to date. Analysts say the deal could help Meta advance its massive AI infrastructure plans while mitigating financial risks.