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TikTok Assures U.S. Employees Ahead of Potential Ban Deadline

TikTok has reassured its U.S. employees about job security ahead of the looming January 19 deadline for a potential ban or forced sale of the popular short-video app. In an internal memo reviewed by Reuters on Tuesday, the company’s leadership stressed that U.S. employees would continue to receive their pay and benefits even if the Supreme Court does not intervene in the legal proceedings.

TikTok’s Commitment to Employees Amid Uncertainty

The memo, addressing TikTok’s 7,000 U.S.-based workers, emphasized that the company’s leadership is focused on the well-being of its employees, confirming that both employment and offices would remain unaffected even if the law, which mandates a sale or ban of the app, takes effect. TikTok reaffirmed that operations, including employee pay, would remain stable regardless of the legal outcome by the January 19 deadline.

“We want to reinforce that as employees in the U.S., your employment, pay, and benefits are secure, and our offices will remain open,” the memo stated.

The Impact of the Pending Law

Last week, the U.S. Supreme Court appeared to be inclined to uphold a law passed in April that could result in TikTok’s sale or ban. This law has raised concerns among U.S. lawmakers and President-elect Donald Trump, who has expressed a desire to seek a “political resolution” once he assumes office. While the law primarily focuses on TikTok’s operations within the U.S. and its user experience, it could have far-reaching effects on the app’s future.

Potential Consequences of the January 19 Deadline

If the Supreme Court does not block the law before the January 19 deadline, new downloads of TikTok on platforms like Apple and Google would be prohibited. Existing users would still be able to access the app for a time, but as support from other companies is halted, TikTok’s services could eventually degrade and cease to function.

TikTok, owned by China-based ByteDance, has maintained that it is doing everything possible to protect its users and employees while navigating this complex regulatory environment. The company remains in discussions to find solutions that would allow it to continue operating in the U.S.

 

EU Airlines Approve Google’s Proposed Search Result Changes under Digital Markets Act

Google’s proposed updates to its search result presentation, aimed at complying with the EU’s Digital Markets Act (DMA), have received support from Airlines for Europe, a lobbying group representing major carriers like Air France KLM and Lufthansa.

The DMA mandates that tech giants like Google cannot prioritize their own products and services on their platforms, with non-compliance potentially resulting in fines of up to 10% of global annual turnover. Google has recently rolled out multiple adjustments to its search result formats to address demands from various stakeholders, including airlines, hotels, price-comparison websites, and small retailers. The latest modifications were announced in November.

Airlines for Europe commended Google’s proposed horizontal layout, which features equally sized boxes for airlines and comparison sites, as well as the use of the color blue to distinguish these elements from other search results. However, the group highlighted several areas for improvement in a letter to the European Commission dated December 20.

KEY CONCERNS AND SUGGESTIONS

  1. Price Consistency: Airlines for Europe stressed the need for displayed prices in the graphics to align with those within the search result boxes.
  2. Specific Dates: The group criticized Google’s proposal for indicative dates in search results, arguing that precise dates are essential for consumers booking air travel. The switch to vague dates, they warned, would significantly degrade the user experience.

Despite these concerns, the airline industry indicated its willingness to compromise in pursuit of a DMA-compliant solution.

POTENTIAL REVERSION TO OLD FORMAT

In response to ongoing disagreements among airlines, price-comparison websites, and other stakeholders, Google has indicated that it might revert to its older format of 10 plain blue links in search results. This format, used in the past, may be reintroduced if no consensus can be reached on compliant designs.

The European Commission continues to review Google’s efforts to align with the DMA, which is intended to level the playing field among digital platforms and their competitors. Airlines for Europe’s endorsement signals progress in balancing the needs of airlines and consumer interests while adhering to EU regulations.

 

Apple Updates EU App Store Policy Following Commission Probe

Apple Inc. has revised its App Store policy in the European Union following a probe by the European Commission. The Commission had charged Apple in June for breaching EU tech regulations, specifically criticizing the company’s restrictions on how developers could communicate with their customers outside the App Store.

Policy Changes

In response, Apple will now permit developers to promote offers and communicate with users directly from within their apps, rather than solely through external links to their websites. This change is designed to give developers more flexibility in how they engage with their customers and manage their sales.

However, Apple is introducing two new fees in place of the existing reduced commission for digital goods and services. These are:

  • 5% Acquisition Fee: Applied to new users acquired through the App Store.
  • 10% Store Services Fee: Charged on sales made by users on any platform within 12 months of app installation.

Currently, Apple charges different fees, including a core technology fee, a reduced commission for digital goods, and an optional fee for payments and commerce services. The new fees will replace the reduced commission structure.

Industry Reactions

Spotify, which has clashed with Apple over in-app link restrictions, expressed concern over the new fees. A Spotify spokesperson criticized the changes, stating that the proposed 25% fee for basic user communication appears to disregard the requirements of the EU’s Digital Markets Act (DMA).

The European Commission had previously criticized Apple’s fees for acquiring new customers through the App Store, deeming them excessive. The Commission plans to evaluate Apple’s compliance with the DMA and consider feedback from developers.

Regulatory Context

This action marks the first enforcement of the DMA against Apple, a regulation aimed at curbing the dominance of Big Tech. Violations of the DMA could lead to fines of up to 10% of a company’s global annual turnover.