Key Takeaways
- Meta Platforms (META) is actively lobbying for age verification responsibility to fall on app store operators Apple (AAPL) and Alphabet's Google (GOOGL), intensifying a tech industry dispute over privacy and platform accountability amid new state laws.
- Intel (INTC) announced plans to spin off its Networking and Communications division into a separate, standalone company and is seeking key external investors for the new entity.
- The U.S. has condemned France's criminal inquiry into social media platform X (X), labeling it a threat to free speech.
- Brazil's Minister supports maintaining the existing 18% ethanol import tariff, despite ongoing trade tensions with the U.S. over the disparity in duties.
- LVMH (LVMUY) is reportedly in negotiations to sell its Marc Jacobs brand for approximately $1 billion, according to Wall Street Journal reports.
Major tech players are embroiled in a significant debate as Meta Platforms (META) pushes for age verification responsibilities to be placed on app store giants Apple (AAPL) and Google (GOOGL). This conflict arises as U.S. states, including Utah, Texas, and Louisiana, enact new laws requiring age verification for minors using online platforms, aiming to protect children from harmful content. Meta argues that app stores, akin to liquor stores checking IDs, should handle age verification, a stance that has gained traction in some state legislations. Conversely, Apple and Google contend that this would necessitate collecting sensitive personal data from all users, posing privacy risks and burdening smaller developers. They assert that age verification should be a shared responsibility with app developers.
In the semiconductor sector, Intel (INTC) is undergoing a strategic restructuring, announcing its intention to spin off its Networking and Communications business into a separate entity. The company is actively seeking external investors for this new standalone venture, which will focus on delivering silicon solutions for critical communications, enterprise networking, and ethernet connectivity infrastructure. This move comes as Intel's new CEO, Lip-Bu Tan, aims to streamline the company and strengthen its core product portfolio and AI roadmap.
Meanwhile, international relations and digital governance are under scrutiny as the U.S. has voiced strong disapproval of France's criminal investigation into Elon Musk's social media platform X (X). The U.S. State Department's Bureau of Democracy, Human Rights and Labor characterized the French prosecutor's request for X's proprietary algorithm information and classification of X as an "organized crime group" as a threat to free speech. X has denied the allegations, calling them "politically motivated" and refusing to comply with the prosecutor's request.
In commodity markets, Brazil's Minister has expressed support for maintaining the country's 18% ethanol import tariff. This stance continues to fuel trade tensions with the U.S., which has condemned the tariff disparity, noting its own 12.5% duty on ethanol imports. The U.S. Trade Representative (USTR) has initiated an investigation into Brazil's tariff and non-tariff barriers on U.S. ethanol imports, with the potential for retaliatory tariffs.
Finally, in the luxury goods market, LVMH (LVMUY) is reportedly in discussions to sell its Marc Jacobs brand. The Wall Street Journal indicates that the potential deal could be valued at approximately $1 billion. Several potential buyers, including Authentic (owner of Reebok), Bluestar Alliance (owner of Brookstone), and WHP Global (parent company of Vera Wang), are said to be in negotiations, with an agreement potentially finalizing soon.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.