Business and Tech News - 3.5.24

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Skool Projekt Staff
March 05, 2024

Apple Fined More Than $1.95 Billion By EU

The European Union fined Apple €1.8 billion for violating antitrust rules, following a complaint from Spotify. The penalty addresses Apple's restrictions on music streaming app developers, preventing them from informing iOS users about cheaper subscription services outside of Apple's ecosystem. This action is seen as Apple abusing its dominant market position, limiting consumer choice, and potentially leading to higher prices. Apple plans to challenge the decision, arguing no evidence of consumer harm was found. The EU's move signals a significant step towards a more open internet and fair competition.

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JetBlue Quits Its Pursuit of Spirit

JetBlue has ceased its attempt to acquire Spirit Airlines for $3.8 billion after a federal judge halted the deal due to antitrust concerns. This marks a significant moment, underscoring the strict antitrust stance of the U.S. Department of Justice. Consequently, both airlines must now navigate the market separately. JetBlue will compensate Spirit $69 million to settle all issues related to the merger. Spirit's CEO criticized the Department of Justice, arguing the merger would have benefited consumers by challenging the dominance of the top four U.S. airlines.

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Former Twitter Execs Sue Elon Musk For $128 Million

Elon Musk faces a lawsuit from four ex-Twitter executives, including former CEO Parag Agrawal, demanding over $128 million in unpaid severance. Following Musk's acquisition of Twitter, now X, the plaintiffs accuse him of unjust termination and fabricating reasons to avoid payment. This legal action is part of broader allegations against Musk for not compensating former Twitter employees. The executives allege they are owed significant amounts in salary and stock options under an existing severance plan.

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Anthropic Releases More Powerful AI Chatbot

Anthropic introduced Claude 3, an advanced suite of AI models, claiming superiority over OpenAI's GPT-4 and Google's Gemini 1.0 Ultra in various benchmarks. Supported by Google and Amazon, Claude 3 Opus is highlighted for its ability to handle complex cognitive tasks, such as intricate financial analysis. Despite its higher cost, Anthropic positions Claude 3 as a valuable tool for businesses requiring high-level AI capabilities. This release underscores the ongoing competition in Silicon Valley to develop leading AI technologies, with Claude 3 being available on Amazon and Google's cloud platforms in 159 countries.

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Trian Partners Unveils Plan For Disney

Trian Partners, in its battle for board seats at Disney, detailed plans to overhaul the company, blaming its board for recent underperformance. In a 130-page whitepaper, Trian accuses Disney's leadership of mismanagement and proposes significant changes, including downsizing Disney’s studio and linear TV networks, spinning out or partnering Disney’s legacy TV networks, and fully consolidating Disney+ and Hulu. Trian also expresses skepticism about ESPN's direct-to-consumer strategy. The suggestions come ahead of Disney’s April 3 annual meeting, amidst other proposals from activists like Jason Aintabi’s Blackwells, advocating for innovative approaches like AI in expanding Disney's parks business. Disney, defending its strategy, highlights new projects and partnerships, seeking shareholder support.

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