US Gets a Voice in Epic Battle with Apple

17 February 2016, Bavaria, Munich: The Apple logo shines on the façade of an Apple Store. (dpa)
17 February 2016, Bavaria, Munich: The Apple logo shines on the façade of an Apple Store. (dpa)
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US Gets a Voice in Epic Battle with Apple

17 February 2016, Bavaria, Munich: The Apple logo shines on the façade of an Apple Store. (dpa)
17 February 2016, Bavaria, Munich: The Apple logo shines on the façade of an Apple Store. (dpa)

The US justice department wants to have its say on Apple's antitrust tussle with Epic Games, which is due to be heard on appeal next month -- a year after a Californian court ruled largely in favor of the iPhone maker.

On Friday, the appeals court granted the department the right to send a representative to the hearing scheduled for October 21, where both sides are expected to make their case again, AFP said.

In 2021 a California judge ruled against Fortnite-maker Epic, which had accused Apple of acting like a monopoly in its shop for digital goods or services.

But the judge also barred Apple from prohibiting developers from including in their apps "external links or other calls to action that direct customers to purchasing mechanisms."

Apple can still mandate that its payment systems is used for in-app transactions.

Both sides are appealing.

Earlier this year the justice department asked for time at the appeal hearing to air concerns about the trial judge's interpretation of antitrust law at issue in the case.

"The district court committed several legal errors that could imperil effective antitrust enforcement, especially in the digital economy," justice department lawyers argued in their brief.

Justice officials have been investigating whether Apple and other tech giants are abusing their market clout with anti-competitive practices.

Attorneys for Apple, Epic and the justice department will all speak to the appeals court, which will also consider their written arguments.


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Pinterest Shares Surge as Strong Ad Spend Defies Tariff Uncertainty

A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)
A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)
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Pinterest Shares Surge as Strong Ad Spend Defies Tariff Uncertainty

A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)
A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)

Pinterest shares jumped more than 11% on Friday, after a strong quarterly revenue forecast allayed investor jitters about the uncertainty of advertising spending on its platform amid global economic volatility.

Its robust first-quarter revenue positions it alongside peers Reddit and Facebook-parent Meta, which also saw strong top-line results at a time when deepening global trade tensions have clouded the outlook for many firms dependent on marketing spend.

A shifting US trade policy coupled with escalating geopolitical tensions have sparked fears of a spike in inflation levels and a possible recession, prompting a broader pullback in consumer and enterprise spending.

However, Pinterest's focus on strengthening the effectiveness of its artificial intelligence tools for creating ad campaigns and a growing Gen Z userbase makes it an attractive destination for marketers.

"AI is helping to serve up the right type of ads for different audience segments, which ultimately means there could be a greater propensity to click on the ad if it is relevant," said Dan Coatsworth, investment analyst at AJ Bell.

Pinterest's global monthly active users rose 10% from a year earlier to 570 million in the first quarter, exceeding analysts' expectations according to data compiled by LSEG.

"We believe Pinterest's strategic focus on AI improvements and international expansion is yielding results," said Angelo Zino, senior equity analyst at CFRA Research.

Pinterest flagged a reduction in spending from Asian e-commerce retailers due to the roll-back of the "de minimis" exemption earlier this year, which led notable Chinese advertisers including online marketplace Temu and fast-fashion retailer Shein to slash ad budgets.

Barclays analysts said they expect "trends to worsen in e-commerce advertising" later this year if and when tariffs impact consumer spending.

If gains hold, Pinterest is set to add around $2 billion to its market cap.

The company trades at 14.51 times the estimates of its earnings for the next 12 months, compared with Reddit's 67.65 and Snap's 22.19.