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Apple has revamped its app store policies in the European Union with hopes of fending off escalating fines under the 27-nation bloc’s digital competition regulations.It’s a last-minute bid by the iPhone maker to avoid further charges following a 500 million euro ($585 million) penalty in April. The bloc’s executive Commission punished Apple for preventing app makers from pointing users to cheaper options outside its App Store, and gave it a 60-day deadline, which expired Thursday, to avoid additional, periodic fines.The changes made by Apple will make it easier for app makers to point users to better deals on digital products and options to pay for them outside of Apple’s own App Store, including other websites, apps or alternative app stores.The California company is also rolling out a two-tier system of fees to accommodate app developers that want to use alternative payments.“The European Commission is requiring Apple to make a series of additional changes to the App Store,” Apple said in a statement. “We disagree with this outcome and plan to appeal.”The commission noted Apple’s announcement and “will now assess these new business terms for DMA compliance,” referring to the EU’s Digital Markets Act. The rulebook was designed to rein in the power of big tech companies under threat of hefty fines worth up to 10% of a company’s global annual revenue.Among the DMA’s provisions are requirements that developers inform customers of cheaper purchasing options, and direct them to those offers.Apple’s restrictions preventing developers from steering users to outside payment channels had been fiercely opposed by some companies. It’s the reason, for example, Spotify removed the in-app payment option to avoid having to pay a commission of up to 30% on digital subscriptions bought through iOS. Associated Press
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E-Commerce
Shares in Nike, Inc. (NYSE: NKE) are trading much higher this morning after the company announced its Q4 2025 results. Yet those results saw Nike post some of its worst earnings in a while, along with a warning that President Trumps tariffs would cost the company $1 billion in the near term. Heres what you need to know about Nikes latest earnings and why the stock is up. Nike reports a revenue decline Yesterday, the iconic shoemaker announced its Q4 2025 and full-year fiscal 2025 earnings. The results werent great. For fiscal 2025, Nike reported full-year revenues of $46.3 billiona 10% decline from fiscal 2024. The companys Q4 2025 revenues totaled $11.1 billiondown 12% from the same quarter a year earlier. The company also posted an earnings per share of 14 cents for its Q4. That EPS was down significantly from the 99 cents the company posted in the same quarter a year earlier. However, perhaps most alarming was the fact that Nike confirmed it would take a $1 billion hit in its current 2026 fiscal year due to the tariffs imposed by President Trump on countries worldwide. The two countries where Nike makes a significant amount of its goods are China and Vietnam. Earlier this year, Trump placed a 46% tariff on goods manufactured in Vietnam and a triple-digit rate on goods made in China. He later reduced both rates, temporarily, to 10% and 30% respectively. Still, Nike chief financial officer Matt Friend said on Nikes earnings call that the tariffs currently in place will result in a new and meaningful cost to Nike, notes CNBC, adding that the company estimates that a gross incremental cost increase to Nike of approximately $1 billion. So why are Nike shares up? You would think that Nikes warning of up to $1 billion in tariff-related costs and its pretty dismal Q4 results would send the stock down, not up. But NKE stock is currently up, and significantly, as of the time of the writing. In premarket trading, NKE shares are currently up over 10% to $68.85. There are a few likely reasons for this. First is that, while Nikes Q4 wasnt anything to write home about, the company actually came in above most Wall Street estimates. Analysts had expected Nike to have a pretty poor quarter already, and indeed, as noted by CNBC, Nike had previously said its Q4 would be the low point of its turnaround. This turnaround involves Nikes pivot to return its focus to athletes and shift away from its recent history of trying to cater to the wider lifestyle segment of the population. The turnaround was initiated after Nike brought in a new CEO, Elliott Hill, last October. For its Q4, analysts had been expecting revenue of $10.72 billion and an EPS of 13 cents. So though Nikes Q4 results were disappointing, especially compared to earlier quarters, its actual revenue of $11.1 billion and adjusted EPS of 14 cents came in above expectationssomething investors typically reward. But another reason the stock is likely rising in premarket trading is also related to that $1 billion hit Nike is expecting. Though the company says it expects the 10-figure hit this financial year, CFO Matt Friend also said Nike expects to fully mitigate Trumps tariff costs over time. Nike will mitigate these tariff costs by using a three-pronged approach: adjusting its supply chain sources getting its suppliers to absorb some of the costs raising prices on U.S consumers later this year NKE shares are still red for the year Despite Nikes 10% price surge this morning, shares in the company are still down significantly for the year. As of yesterdays close, Nike shares were sitting at $62.54down more than 17% for the year. However, that was still significantly above its April lows of nearly $52 per share after President Trump unleashed his Liberation Day tariffs on the world. Over the past 12 months, Nikes shares were down more than 33% as of yesterdays close.
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E-Commerce
If a Gen Alpha tween said, Let him cook, would you know what that meant? No? AI doesnt either. A research paper written by soon-to-be ninth grader Manisha Mehta was presented this week at the ACM Conference on Fairness, Accountability, and Transparency in Athens. The paper details how four leading AI modelsGPT-4, Claude, Gemini, and Llama 3all struggled to fully understand slang from Gen Alpha, defined as those born between 2010 and 2024. Mehta, along with 24 of her friends (ranging in age from 11 to 14), created a dataset of 100 Gen Alpha phrases. These included expressions that can mean totally different things depending on contextfor example: “Fr fr let him cook” (encouraging) and “Let him cook lmaoo (mocking). According to the researchers, the LLMs had trouble discerning the difference. In particular, AI struggled with identifying “masked harassment,” which is concerning given the increasing reliance on AI-powered content moderation systems. “The findings highlight an urgent need for improved AI safety systems to better protect young users, especially given Gen Alphas tendency to avoid seeking help due to perceived adult incomprehension of their digital world,” the study reads. It wasnt just the AI models that performed poorly; parents didnt do much better. The parent group scored 68% in basic understanding of Gen Alpha slang, nearly identical to the top-performing LLM, Claude (68.1%). While the LLMs did slightly better at identifying content and safety risks in the language, only Gen Alpha members themselves scored highly in understanding the slang, its context, and potential risks. Its nothing new for young people to feel misunderstood by their parents, but now the gap is widening. Members of Gen Alpha, born post-iPhone and known as the iPad generation, have grown up online. Their native language, often sourced from online spaces (most notably gaming), evolves so quickly that whats popular today may disappear within a month. Mehtas research shows that parentsand even professional moderatorsare likely to miss context shifts in comment sections. For example: OMGG you ate that up fr, versus You ate that up ig [skull]. The implications of the study suggest that parents might recognize only a third of the times their child is being bullied in comments, even if theyre closely monitoring their online activity. Simply put, the systems meant to keep kids safe online dont speak their language.
Category:
E-Commerce
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