Good Morning! It’s the first week of summer, so your plans are probably ready. Your airline tickets were probably a bit expensive. Today, a deep-dive on why that is the case.

Today’s headlines:

• The European Commission is picking another fight with Apple 🍏 

• Airplane tickets’ up, stock prices down 📉 

• Houston, we have a problem! Starliner stuck in space 🛰️ 

Have a good one!

Nils

APPLE
Another day, another Apple lawsuit

What Happened
Apple is accused of breaching the EU Digital Markets Act (DMA) by the European Commission (EC), which will now start investigation procedures. The EC will look into the 50 cent fees app creators must pay each user above the 1 million threshold. It is also looking into other hurdles Apple has for alternative app stores.

Why It Matters

• It is the first time the EC has started procedures under the DMA after it entered into effect in March 2024. The potential fine for Apple can be up to 10% of its annual revenue.

• The charges come after Apple opened up iOS for alternative app stores in January in order to comply with the DMA. The DMA states that there must be fair competition on marketplaces, which the EC now believes is not the case with the App Store.

• The regulatory burden the EC has put up on big tech companies has already caused delays in the rollout of new technology in Europe. Now, Apple is also taking this step by delaying the release of Apple Intelligence in Europe.

What’s Next
The EC has to file its first preliminary finding of the inquiry into Apple. In the meantime, Apple will try to limit the damages done under the inquiry. This whole process will take a long time, as Apple still has an option to appeal the fine with the European Courts. The final outcome of this whole case will probably be expected in… 10 years.