Apple Loses EU Legal Battle Over Digital Markets Act
Apple lost its legal challenge against the EU's Digital Markets Act, classifying its app store and OS as gatekeepers. Global smartphone shipments fell 11% in Q2, SK Hynix shares dropped 15% after its Nasdaq listing, and Renault completed a 1,000-mile solar-powered EV journey.
Key Numbers
According to Reuters, Apple (AAPL) lost its challenge against landmark EU rules, meaning its app stores and operating system are designated as gatekeepers under the Digital Markets Act (DMA).
Details of the Action
The DMA imposes obligations on Big Tech to give rivals more room to compete, with the threat of hefty fines for non-compliance. The law has triggered legal challenges from Apple, Meta (META), and ByteDance since taking effect over three years ago.
Context
In other news, global smartphone shipments fell 11% in the second quarter to their lowest level since 2013, according to Counterpoint Research, due to a memory chip shortage driving up prices and hurting demand.
SK Hynix shares fell more than 15% on Monday, its biggest one-day decline on record, just days after its U.S. listing. The decline, along with a drop in Samsung Electronics stock, led to a 9% plunge in South Korea's Kospi index and triggered a 20-minute trading halt.
Meanwhile, a Renault electric vehicle completed a 1,000-mile journey using only solar power, charged at solar installations along the route.
What This Means for Investors
These developments highlight increasing regulatory challenges for Big Tech in Europe, the impact of chip shortages on smartphone supply chains, and market volatility following SK Hynix's U.S. listing.
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