A deal between Apple and Amazon to sell the technology giant's products on the e-commerce platform has come under scrutiny by federal regulators, according to media reports.
The Federal Trade Commission (FTC) is reportedly investigating the agreement for its impact on small resale suppliers that sell discounted and refurbished Apple products.
"Apple does have certain rights as a seller, but rights aren't unlimited," Joel Mitnick, an antitrust attorney and former FTC lawyer told Cheddar on Tuesday, stressing that any coordination between Apple and Amazon to undercut low-cost sellers would be illegal.
The Verge first reported the probe last week, citing a reseller who was interviewed by investigators.
"The FTC does not confirm the existence of investigations or comment on them," the agency told Cheddar.
Apple ($AAPL) and Amazon ($AMZN) first inked the deal in November last year to increase sales and limit the proliferation of fake products, or those falsely advertised as coming from Apple itself.
The issue is whether there is a "conspiracy that is really aimed at discounters," Mitnick said. "It raises the question of monopolization."
The FTC's reported inquiry comes as the government has become increasingly willing to investigate — and crack down on — major technology companies for privacy and antitrust violations.
In February, the FTC's Bureau of Competition announced the formation of a Technology Task Force that would be dedicated to monitoring and investigating competition in the U.S. technology sector.
"It makes sense for us to closely examine technology markets to ensure consumers benefit from free and fair competition," Joe Simons, the FTC's chairman, said in a statement at the time. "Our ongoing Hearings on Competition and Consumer Protection in the 21st Century are a crucial step to deepen our understanding of these markets and potential competitive issues. The Technology Task Force is the next step in that effort."
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
