Apple slapped with €1.8b antitrust fine

Good morning. Here's what happened overnight and what you need to know today.

1.

Fine fit for a giant: The European Commission has hit Apple with a €1.8 billion ($3 billion) antitrust fine, arguing that the tech giant abused its market dominance for the distribution of streaming apps. The Commission explained that the size of the fine was necessary in this case, as a significant part of the harm caused by the infringement consists of non-monetary harm, which cannot be properly accounted for under the Commission's fines guidelines. The fine also needed to be large enough to act as a deterrence. The decision found that Apple bans streaming app developers from fully informing iOS users about alternative and cheaper music subscription services available outside of Apple’s App Store, and from providing any instructions about how to subscribe to such offers. The penalty is the third-largest antitrust fine issued by the European Commission to date. (European Commission Press Release)

2.

No questions please: Premier of China, Li Qiang, will not hold a press conference at the close of the country’s annual parliamentary meeting, ending a tradition that had been carried out since 1993. A spokesperson for to the National People’s Congress explained that no such press conferences will be made by Li, the country's second in charge, at the conclusion of each year’s meeting for the remainder of China’s parliament, ending in 2027. The move could be a sign that the premier’s authority is diminishing while Xi Jinping remains president, and that the country could be heading towards greater isolation. China’s premiers have historically taken the press conference as an opportunity to address questions from Chinese and foreign journalists, clarifying policies on the back of the NPC gathering. (China Foreign Affairs Press Release)(Reuters)(Capital Brief)

3.

Back on the ballot: The US Supreme Court has ruled that Colorado cannot disqualify former presidential candidate and Republican frontrunner, Donald Trump, from its Republican presidential primary vote. The Supreme Court’s decision overturns a ruling that had found that Trump was not qualified to hold office as he had engaged in efforts to overturn the 2020 election results, namely that he had incited riots at the US Capitol on January 6, 2021. The Supreme Court’s decision was based on an interpretation of Section 3 of the US Constitution’s 14th amendment, and the unanimous decision explained that responsibility for enforcing the section rests with Congress and not the States. Colorado and 14 other states will vote in Republican primaries tomorrow, a key milestone in the nomination process referred to as ‘Super Tuesday.’ (US Supreme Court Decision)(CNBC)(Associated Press)

4.

Expansionary thinking: Former chief of Macquarie Group, Nicholas Moore, has encouraged Aussie startups to consider expanding into Southeast Asian markets. The comments come as the federal government unveiled a suite of policies designed to strengthen the nations regional trade. Anthony Albanese will announce measures to boost Australia’s economic presence in the region, including "landing pads" to help startups launch their businesses into key markets and a $2 billion finance facility for clean energy and infrastructure projects in the region. While attending the ASEAN-Australia Special Summit on Monday, Moore told Capital Brief that the landing pads will be "very tech focused," taking advantage of the digital economies of Southeast Asia which are predicted to be worth between USD600 billion and USD1 trillion, up from an estimated USD200 billion in 2022. (Capital Brief)

5.

PIIGS slow recovery: Almost 15 years since Greece’s economic meltdown during the eurozone crisis, Athens has started the sale of most (if not all) of its 27% stake in Piraeus Financial Holdings. Greece’s Hellenic Financial Stability Fund, which was set up in 2010 to take stakes and provide capital to beleaguered banks, began the sale of its Piraeus stake on Monday. The state fund sold out of two other lenders during 2023, and reduced its stake in the National Bank of Greece, planning to be fully exited by the end of 2025. The country’s economy is now benefitting from large grants from an EU recovery fund, and according to the Wall Street Journal, a surge in European bank profits from higher interest rates is driving interest from investors. (Wall Street Journal)

6.

Meta’s political value: In the wake of Meta’s decision to pull out of its funding deals for Australian news coverage on Friday, questions are being raised around whether the Albanese government will use the opportunity to curry favour with Australia’s biggest media companies ahead of the next election. There are hopes that Meta’s decision will prompt broader reform, which would not only designate Meta under the news media bargaining code, but would amend rules to ensure that all publishers – regardless of their size or reach – would be able to benefit. Others predict that a rush to designate Meta could be prioritised over meaningful reform to please the incumbent media giants. (Capital Brief)

7.

Independent airlines: US airlines JetBlue and Spirit Airlines have terminated their USD3.8 billion merger agreement, months after a federal judge blocked JetBlue’s attempts to take over the budget carrier on antitrust grounds. Under the agreement, JetBlue will pay Spirit USD69 million, in line with the deal’s termination clause. Shares in JetBlue gained 6% in premarket trading, while Spirit stock remained little changed. In the January judgment blocking the proposed merger, US District Judge William Young said that the government had proven that the merger would “would substantially lessen competition” and that Spirit is particularly important for travellers looking for cheaper flying alternatives. JetBlue appealed the decision days after it was handed down, but acknowledged that the appeal was required under the terms of the merger agreement and analysts did not expect the appeal to succeed. (JetBlue Press Release)(Associated Press)

8.

Coin creeps up: Bitcoin has surged to over USD67,000, edging closer to its previous all-time high of USD68,990.90 reached in November 2021. The cryptocurrency rose over 5% during trading overnight, bringing it within 5% of the record high. Bitcoin has rallied 48% during 2024, fuelled by positive expectations that the SEC’s approval of spot Bitcoin exchange traded funds will expand the buyer-pool for the cryptocurrency. The currency is also approaching a ‘halving’ event in April, which will see the rate of Bitcoin supply decline, driving up value. Antoni Trenchev, cofounder of crypto exchange Nexo told CNBC: “We’re in that sort of environment when a day or two of sideways consolidation can precede explosive price action thanks to the voracious demand of these new spot ETFs.” (CNBC)