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Get Ready to Short Apple Stock Once EU’s New Anti-iPhone Law Finalizes – CCN.com

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  • Apple faces regulatory headwinds after the EU voted overwhelmingly to back a resolution that calls for a common mobile charger.
  • The proposed legislation targets electronic waste rather than Apple’s competitive practices but could still have major implications on the iPhone maker’s business.
  • Regulation is just one of many reasons Apple’s stock could be on short-sellers’ watch list.

Apple’s (NASDAQ:AAPL) ability to milk its loyal fanbase could get a lot harder this summer when the European Union (EU) implements a consumer protection proposal limiting the iPhone maker’s price-gouging tactics.

On Thursday, members of European Parliament backed a proposal that would establish uniform charger requirements for all mobile device makers across the region. This means companies like Apple won’t be able to force consumers to buy new chargers with each device purchase.

EU Lawmakers Vote for Common Mobile Charger

Apple was in lawmakers’ crosshairs Thursday after European Parliament voted 582-40 for a resolution that protects consumers against buying new chargers with each new mobile device [Reuters]. The resolution, which was tabled to the European Commission, could be implemented as early as July.

To be clear, lawmakers weren’t fixated on Apple’s chargers but on so-called electronic waste. The proposal cites research showing that EU inhabitants generated 12.3 million tons of electronic waste in 2016. That amounts to 16.6 kilograms (36.6 pounds) per head.

While lawmakers acknowledged that voluntary industry agreements were necessary in reducing waste, they’re insufficient in meeting the EU’s lofty targets. As Reuters reports, the EU proposal would affect Apple more than any other company because most of its mobile products use Lightning cable as opposed to the standard USB-C connector.

How the Legislation Impacts Apple’s Business

As Tech Crunch reports, frayed charging cables are just one of the ways Apple managed to grow into a trillion-dollar company. One of the most infamous price-gouging moves happened in 2012 when Apple first introduced the Lightning charger, which meant repeat customers had to purchase new cables and compatible accessories [Business Insider].

In 2019, plaintiffs in a California lawsuit alleged that Apple forced its customers to purchase new iPhone chargers by pushing updates that disrupted compatibility with previous connectors [Apple Insider].

Apple’s soft power is wielded through ‘innovation,’ which allows the company to design slimmer ports for its devices that require connector upgrades [Business Insider]. The only problem is that many of Apple’s most recent iterations have lacked innovation [Forbes] and may even be trailing competitors [CNN].

All this puts Apple at the center of the EU’s war against electronic waste. A European Parliament briefing from mid-January claimed that “old chargers generate more than 51,000 tonnes of electronic waste per year.”

Apple has sold more than 1 billion devices that use a Lightning connector. The company says the EU proposal,

would have a direct negative impact by disrupting the hundreds of millions of active devices and accessories used by our European customers and even more Apple customers worldwide, creating an unprecedented volume of electronic waste and greatly inconveniencing users. [Business Insider]

There Are Other Reasons to Short Apple

Legislation targeting smartphone chargers probably isn’t enough to cause investors to roll over on Apple’s stock. But combined with other factors, it could embolden the iPhone maker’s short-sellers to up their stake.

At $14.3 billion, Apple was the most shorted stock in the United States through mid-January, according to S3 data [CNBC]. It was later overtaken by Tesla, whose doubters pushed their short position to a combined $14.5 billion.

Obviously, a large swathe of investors believe Apple is primed for correction after months of relentless gains. That’s because Apple’s stock performance is characteristic of the overvaluation and investor complacency that currently dominates Wall Street.

Lance Roberts of RIA Advisors told MarketWatch in January that companies like Apple represent the “overbought, extended and complacent market” whose day of reckoning is coming. After all, “near vertical price acceleration,” like Apple has witnessed over the past 12 months, is a strong indicator that the top of the business cycle is near.

Apple’s stock price virtually doubled between January 2019 and January 2020. | Chart: Yahoo Finance

Tech investor Paul Meeks also warned CNBC viewers in late December that AAPL shares were overvalued by around $100. The stock is up another 8% from where it was on New Year’s Eve.

Then there are the real reasons Apple’s stock continues to surge: Share buybacks and abundant Federal Reserve liquidity. Take a look at how much Apple has doled out on buybacks over the years:

Apple’s buyback program is reaching epic proportions. In May 2018, the company announced it will buy back $100 billion in stock. | Image: YCharts

Corporate CEOs cite many reasons for buying back shares, including ownership consolidation and improving key financial ratios. [Investopedia] For Apple, one of the main drivers has been increasing share prices at a time when company dividends are struggling below the 13-year median and broader S&P 500 average.

The buyback program has pushed Apple dangerously into overvalued territory. By mid-January, the company’s stock was trading for nearly 23 times projected earnings and well above its average forward price-to-earnings ratio [Barron’s].

By most accounts, Apple has a rosy outlook as it continues to expand into China and maintains a strong foothold in established smartphone markets. But with the stock hovering near record levels, and markets veering into dangerous territory based on key fundamentals, the EU’s regulatory onslaught could complicate matters for America’s second-most valuable company.

Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com. The above should not be considered trading advice from CCN.com.

This article was edited by Josiah Wilmoth.

Last modified: February 1, 2020 4:20 PM UTC

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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