Silicon Valley Tech News Roundup May 3rd

European Commission charges Apple with antitrust breach

The European Commission issued a “Statement of Objections” to Apple regarding the App Store rules for music streaming providers. The European Commission concluded Apple distorts competition and abuses its position for distribution of music streaming apps via the Apple Store. The European Commission started their investigation last summer after a complaint by Spotify.

Margrethe Vestager (Executive Director in charge of competition policy) stated:
“With Apple Music, Apple also competes with music streaming providers. By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition. This is done by charging high commission fees on each transaction in the App store for rivals and by forbidding them from informing their customers of alternative subscription options.”

Apple has 12 weeks to respond to the statement of objections.

Bay Area companies still affected by Covid-19 shutdowns

The state’s Employment Development Department (EDD) reports over 800 people lost jobs in the Bay Area due to facilities closing or layoffs. The companies laying off workers include Target, Lumentum, Hitachi Vantara, and Boston Scientific (among others).

It goes in contrast to the reports of the new job openings throughout February and March and is in part due to the business shutdowns during the Covid-19 pandemic.

Experts claim California will remain tech center

Around the world, California is known as the center of innovation and home to some of the world’s biggest tech giants. But over recent years, some companies (like Oracle and Hewlett Packard) decided to move out of state.

The experts feel what California has to offer to tech companies means it will remain the tech capital of the world. Sam Liccardo, the Mayor of San Jose, believes the way to stay competitive is to create ways for companies to employ people and keep them in California:
“There’s much we need to do to create a more affordable California where people can continue to come from around the world to be able to launch their next great idea, to be able to work and strive and achieve the California dream.”