Apple’s Cunning App Store Compromise

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when apple sued Yesterday represented a shift in the balance of power in an app ecosystem that the tech giant had long tightly controlled, brought about by a group of small app developers. Just how much of a change is up for debate.

What did Apple accept?

  • Developers will now be allowed to inform customers via email and other channels (but still Negative within apps), about alternative payment methods that avoid Apple’s commissions. Although Apple had selectively enforced the rule before, it framed it as a major concession.

  • It has agreed not to increase the 15 percent commission Apple collects on customer purchases from small app developers for at least three years.

  • It will set up a $100 million fund to pay out developers who have earned less than $1 million a year from Apple’s app store over the past few years. They will be eligible to receive payouts between $250 and $30,000 each.

  • It will publish an annual report on the number of apps it has rejected or removed from the App Store, and data on search results.

Does this change anything? Maybe a little for developers, but a lot for Apple. The developers were already pushing their customers to circumvent Apple’s commissions, and the deal officially blessed this arrangement. Seen through the lens of Apple’s other legal issues, the deal could be strategically cunning, mitigating the threat of further government action, and shifting Washington’s focus to other tech giants less willing to make similar concessions.

Apple still facing wider lawsuit over its App Store From Epic Games (Fortnite maker), both companies are awaiting a decision from a federal judge. There is also the Supreme Court other permitted antitrust class actions against Apple to move forward. Specifically, yesterday’s deal is subject to approval by the same judge who presided over consumer lawsuits against Epic Games and Apple.

“We will not forgive, we will not forget” President Biden sworn to hunt Those responsible for two explosions at Kabul airport that killed at least 13 American soldiers and more than 60 Afghan civilians. The attacks are adding to the chaos in Afghanistan after the Taliban takeover and before the final withdrawal of US troops next Tuesday.

China reportedly freezes IPOs abroad. New rules on business from China’s securities regulator, Sources speaking to The Wall Street Journalwill prevent Chinese companies with sensitive consumer data from being listed outside of China. The so-called move underlines Beijing’s determination to limit the environment. ambitions from local technology companies. Separately, the Chinese Supreme Court 996 so-called work culture – working from 9 am to 9 pm six days a week, which is common in the country’s tech industry – is illegal.

The U.S. Supreme Court lifted a federal eviction ban. The resolution will end the moratorium, which will expire in October, unless Congress takes action to impose a new ban. Decisionopposed by three liberal judges, up to 11 million people in houses when states (slowly) distribute rent aid.

In other housing news, California developed a zoning law to open suburbs to development. To alleviate the housing shortage, state legislators vote allowing two-unit buildings on plots devoted to detached houses for generations. Similar reconstruction battles are taking place across the country, often pitting housing advocates against homeowners.

The Long-Term Stock Exchange received its first listings. Two technology companies, Asana and Twilio, listed its shares In a start-up exchange designed to discourage short-term thinking and encourage embracement of all stakeholders, not just shareholders. Companies are already listed on the NYSE, making the move largely a technical detail, but the exchange hopes others will be encouraged to list there. The exchange has had a slow start since its inception. first conceived ten years ago.

Two of the architects of Bank of America’s recovery from the financial crisis helped chart a new path for the banking industry as a whole, heading for the exit.

Yesterday, Bank of America announced that Anne Finucane, the bank’s vice president and one of Wall Street’s most powerful women, and the bank’s COO, Thomas Montag, will retire at the end of the year. Their departure also opens the door to new leadership at the country’s second-largest lender. The Times reports Lananh Nguyen.

Finucane was a pioneer on Wall Street for many reasons. Joined Bank of America CEO Brian Moynihan, who once joked that “we all report to Anne”, relied heavily on Finucane to rebuild the bank’s image of subprime lending in the wake of the financial crisis.

Under Finucane, 69, Bank of America has emerged as one of the more forward-thinking firms in finance, leading the way in environmental, social and governance issues that Finucane promoted long before most bankers took them seriously. He articulated the bank’s position when he backed out from financing companies producing military-style assault rifles in 2018 and stopped lending to private prison companies in 2019.

Coming from Merrill Lynch, Montag was crucial to restoring the firm’s Wall Street arm. after the crisis. Montag, 64, harsh driving cultureis a polarized number. Some employees during the pandemic I felt pressure to be in the office even if other banks have adopted (or tolerated at least) remote work.

In an email to staff, Finucane said he plans to continue working on how banking can do more to combat climate change. “He has been one of the leaders who has helped open people’s eyes to what companies can do about climate,” said John Kerry, President Biden’s climate ambassador and former chairman of the bank’s advisory council.

While neither Finucane nor Montag are in line to replace 61-year-old Moynihan, their retirement will initiate a reorganization of executive cadres that will send a signal as to who will run the bank next. “Let the show begin,” said Mike Mayo, a Wells Fargo analyst who has followed the bank for decades.


— Cuy Sheffield, head of crypto at Visa, on the payments giant dealing with NFTs and other projects in the blockchain industry.


As digital media companies compete for growth, many looking to scale through agreements. Two well-known brands announced a merger yesterday, while the third announced a shake-up. Here is the summary:

Politico sold itself to Axel Springer, The German publishing giant, which owns Insider and Morning Brew, more than $1 billion, according to sources. A major buyer attraction: its subscription service, which generates more than $200 million of Politico’s annual revenue. Robert Allbritton, who helped found Politico in 2007, will remain publisher and the company will operate separately from Springer. The deal could disrupt Springer’s talks to buy Politico’s rival, Axios. “Why would you consider another alternative?” Springer’s CEO, Mathias Döpfner, told employees at a town hall meeting.

Forbes said it will go public through SPAC, In a deal worth $630 million. Founded as a magazine in 1917, the outlet is mostly digital these days, but still publishes a print edition eight times a year in the United States. majority share To Integrated Whale Media in 2014

Vice announced the layoffs and the transition to video. The site, which has made its own SPAC discussions, cutting about 20 full-time jobsmostly writers and text editors as it shifts its emphasis to video.


Not long ago, many market watchers marked today as a very important date on the calendar. Fed Chairman Jay Powell will deliver his annual speech today. Jackson Hole research conferenceIt’s where U.S. central bank officials often announce key policy changes. It seemed like the moment the Fed chair would announce that the central bank would cut back on its $120 billion monthly bond purchases, but now it looks like it won’t be that important.

With the rise of coronavirus cases endangering the economic recovery, many believe it is premature for the Fed to make a major change in its stance. The Jackson Hole symposium itself had to switch to a virtual format just a week ago. Powell’s speech will be held at 10:00 in the East, and you watch here.

Here’s what some expect from the event…

  • “Two to three months ago, people were waiting for the entire downsizing plan in Jackson Hole,” said Priya Misra of TD Securities. told The Times. “Now, what people are struggling with is more of the economic outlook.”

  • “You don’t want to rush a rate cut or go for rate hikes while the Delta is still a threat,” said Brett Ryan of Deutsche Bank. told Bloomberg.

  • “Currency markets are overwhelmingly positioned for delay,” said Karl Schamotta of Cambridge Global Payments. told Reuters.

… and what might go unsaid:

  • The timing of the contraction. “The longer Powell waits to elaborate on his own thinking, the greater the challenges to maintaining Fed unity and the greater the risk that the central bank will be forced to slam policy more erratically,” Mohamed El-Erian wrote. a Opinion article for the Financial Times.

  • The Fed’s role in inequality. The theme of the Jackson Hole meeting is “Macroeconomic Policy in an Unstable Economy” and Karen Petrou He told Federal Financial Analytics’ DealBook that “disorder is a euphemism for inequality.” He wants Powell to acknowledge how the Fed contributes to economic inequality and take a different approach. But Powell, whose presidency is due to expire in February, said he would stick to vague statements and “shadow boxing” his path to re-nomination.

Opportunities

  • Backed by Berkshire Hathaway, Brazilian Nubank is targeting an IPO valuation of over $55 billion, which would make it one of the largest fintech companies in the world. (Reuters)

  • Struggling with debt, Chinese developer Evergrande is preparing to sell its assets to bolster its finances. (Bloomberg)

  • The two largest shareholders of the Nasdaq-listed Chinese social media company Joyy want to make it private with a deal that could be worth $8 billion. (Reuters)

Policy

  • Former President Donald Trump is being sued by a group of Capitol Police officers who served during the January 6 riot. (NYT)

  • There are increasing calls to discipline doctors who spread misinformation about the coronavirus. (NYT)

  • Peloton is facing multiple investigations into how it handled a recall following the death of a child and other treadmill-related injuries. (CNBC)

best of the rest

  • Will Elizabeth Holmes tell her side of the Theranos story at her trial? (WSJ)

  • Tesla wants to sell electricity to Texas, a filing with the state’s utilities commission. (CNBC)

  • “Social Media Stars Moving Markets.” (WSJ)

  • Why is Mastercard getting rid of the magnetic stripe on its cards? (Yahoo Finance)

  • “Who runs Twitter’s @Twitter?” (Bloomberg)

We want your feedback! Please email your thoughts and suggestions. dealbook@nytimes.com.

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