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Apple, Google no longer in power as fairness is brought to digital economy

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South Korea is the first country to challenge app store payment policies, with a new bill introduced to support content developers.

South Korea challenges app and play store policies.

Google and Apple are now facing criticism for their app store and payment policies across the Asia Pacific.

Currently, app developers are forced to use the proprietary billing systems of the respective tech giants’, however South Korea is challenging this rule.

Under a new bill passed on Tuesday by South Korean parliament, app makers can use external companies to process payments on their apps in Google Play and Apple’s App store.

The country will be the first to challenge Google and Apple’s payment policies, once the bill is signed by President Moon Jae-in.

This comes a week after Apple said it would allow App Store developers to promote alternative payment methods to their user.

Current policies “unfair”

Critics said the current Google and Apple payment legislations were unfair, as the monopolies were entitled to a 30 percent commission.

They also said, developers were left with little choice and had to coincide with the conditions or face not receiving payment and delayed app reviews.

Meghan DiMuzio, the head of the Coalition for App Fairness, welcomes the bill coined the “Google power-abuse-prevention law” with open arms.

“[The law] is a significant development in the global fight to bring fairness to the digital economy,” DiMuzio says.

Apple and Google react

However, in response to the bill, Apple says choice of third-party payment systems may put users at risk of exposure to fraud.

“Users who purchase digital goods…undermine their privacy protections, make it difficult to manage their purchases and features like ‘Ask to Buy’ and Parental Controls will become less effective,” an Apple spokesperson says.

Google also commented on the bill saying its payment system is what helps keep its service fee “free”.

“We’ll reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks.”

Australia follows suit

Australia is also ramping up the pressure by floating reforms for how to tackle payment systems provided by Apple and Google.

Apple’s commissions, can go as high as 30 percent on some purchases made through the company’s platform, with some companies saying they have little choice to comply.

Australian Treasurer Josh Frydenberg has called for new regulations on digital payments.

“Ultimately, if we do nothing to reform the current framework, it will be Silicon Valley alone that determines the future of our payments system.”

Treasurer Josh Frydenberg, the Australian Financial Review newspaper.

The Australian government is considering designating tech companies as payment providers while establishing a strategic plan between the government and the industry.

As a result, an integrated licensing framework will be developed for payment systems.

Written by Rebecca Borg

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Tech

Apple unveils thinner iPhone Air to excite upgrades

Apple launches thinner ‘iPhone Air’ amid price hikes, aiming for customer upgrades despite challenges in AI features and tariffs

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Apple launches thinner ‘iPhone Air’ amid price hikes, aiming for customer upgrades despite challenges in AI features and tariffs

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In Short:
– Apple has introduced the new iPhone Air, priced at £999, to attract customers and update its smartphone line.
– The Air features innovations like a battery accessory, while Apple faces competition in AI capabilities.
Apple has launched a new “iPhone Air” model, marking its first significant smartphone release in years.
The new device, priced at $999, aims to attract customers following difficulties in delivering AI features.

This model replaces the Plus line and initiates a refresh since the iPhone X.Banner

The iPhone Air is designed to pave the way for a potential foldable iPhone next year, indicating Apple’s commitment to creating thinner devices. Analysts highlight challenges with foldable technology, expressing optimism about Apple’s advancements.

The iPhone 17’s base price remains at $799, with the cheapest Pro model starting at $1,099.

Tariffs will be avoided as Apple sources most iPhones from India. The company introduced a battery accessory to enhance the Air’s life, although it adds bulk.

Design Innovations

Apple has also introduced new AirPods Pro featuring a heart monitor and an Apple Watch that can detect high blood pressure.

However, the company faces criticism for lagging AI capabilities compared to competitors like Google. Investor sentiment remains positive following a strong sales quarter and positive developments regarding trade tariffs.

Futurum Group CEO Daniel Newman said that the iPhone 17 launch comes at a “really tough” moment for Apple.

“The problem with Apple is that everything that’s showing up today is, in fact, pretty incremental,” he told CNBC’s “Power Lunch.” “Yes, the phone is thinner, and yes, it looks great. We haven’t had a big supercycle in four years.”

Other devices

The new AirPods Pro 3 boast improved audio quality and noise cancellation. A new feature is real-time translation of conversations in foreign languages. They cost $249, the same as their predecessor.

Apple released three new Apple Watch models: the Series 11, which includes updates to the low-end SE and high-end Ultra models. Prices remain unchanged. Apple has added a new health feature to the devices, using machine learning to assess the risk of high blood pressure.

Apple’s iOS 26 will be available as a free software update on Monday.

Apple shares down after event concludes

Investors appeared indifferent to Apple’s latest product announcements, including the new iPhone Air model and Apple Series 11 Watch.

As a result, Apple shares fell by approximately 1.5% after the event concluded.


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Apple may increase iPhone prices despite tariff management

Apple may increase iPhone prices despite managing Trump-era tariffs effectively ahead of new model launch

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Apple may increase iPhone prices despite managing Trump-era tariffs effectively ahead of new model launch

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In Short:
– Tim Cook strengthened Apple’s U.S. investment with a $100 billion commitment despite tariff pressures.
– Analysts predict iPhone price rises due to increased component costs and enhanced features.
Apple CEO Tim Cook has successfully managed the company’s relationship with the White House amid tariffs.
Cook presented President Donald Trump with a gold plaque while announcing a $100 billion U.S. investment.
This was part of a broader commitment to spend $600 billion in the U.S. over the next five years.Banner

Despite these efforts, analysts predict Apple may raise iPhone prices due to ongoing tariff pressures.

CounterPoint’s Jeff Fieldhack noted speculation about a potential increase. While Apple has managed the impact of tariffs better than anticipated, it has incurred costs amounting to $800 million recently.

Pricing Trends

Apple has a history of cautious pricing strategies.

While it has not raised prices significantly in recent years, component costs have increased. Analysts expect upcoming iPhones to boast enhanced features, which could justify a price rise.

Additionally, reports suggest an entry-level Pro model may be eliminated, leading consumers to face higher starting prices for new devices. Cook previously stated that there were no immediate price changes to announce.


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Google avoids major penalties in U.S. antitrust case

Google avoids severe penalties in U.S. antitrust case as judge allows payments to maintain deals with Apple and others

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Google avoids severe penalties in U.S. antitrust case as judge allows payments to maintain deals with Apple and others

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In Short:
– U.S. Judge Mehta ruled Google can’t have exclusive search deals, allowing ongoing distribution payments.
– The decision supports collaboration with Apple and reflects changing market dynamics amid AI advancements.
U.S. District Judge Amit P. Mehta ruled that Google cannot secure exclusive search engine deals, allowing distribution payments to continue.
According to The Wall Street Journal, the judge acknowledged the potential harm to partners like Apple if such agreements were prohibited.The ruling follows Mehta’s previous finding that Google maintained a 90% search market share through illegal practices.

Mehta explained the changing market dynamics, particularly due to AI technology, arguing against drastic interventions that could disrupt competition.

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The decision is viewed positively by Wall Street analysts, as it allows Google to continue its $20 billion annual payment to Apple for being the default search provider.

This arrangement could further foster collaboration on AI services.

Future Innovations

The ruling impacts Google’s ability to create exclusive agreements and requires data-sharing to boost competition.

Critics argue the remedies are insufficient, with calls for an appeal regarding Mehta’s perceived leniency toward Google.

In related news, Google stated the judgement reflects industry changes, affirming that competition remains robust. The Justice Department plans to review the ruling’s implications for restoring competition in the search market.


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