Monday, March 4, 2024

The EU fines Apple €1.84B

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By Alex Wilhelm

Monday, March 04, 2024

Good morning! Today in TechCrunch AM, we're digging into the latest fine levied by the EU against a tech giant; AI regulation, and edtech drama. For founders, we have notes on cap table management, interviews with leading VCs from our StrictlyVC event, and news on fintech and web3 startups alike. To work!

Alex

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TechCrunch Top 3

  1. Apple fined €1.84B: The EU has levied a fine of nearly $2 billion on Apple for breaching antitrust rules in the market for music streaming services on iOS. Apple is in trouble for its application of anti-steering provisions, which aim to curb music streaming companies' ability to tell customers about cheaper options outside the Apple App Store. Why do these big platform companies keep getting into trouble? Because it's tempting to leverage your platform to your own advantage (just ask Microsoft).
  2. Spotify hailed the decision, calling the verdict a "powerful message."
  3. India clamps down on AI: Major tech firms will have to snag government permission to launch new AI models, according to an advisory from India's Ministry of Electronics and IT. The regulation requires companies to ensure their models aren't discriminatory, or "threaten the integrity of the electoral process." The seemingly tougher stance taken by China, India, and the EU on the AI regulation front could make the United States' light-touch approach stand out.
  4. In today's episode of Byju's Drama: Camshaft Capital has revealed that about $533 million that it managed for a subsidiary of Indian edtech giant Byju's was sent to another subsidiary of the company, and so the funds were not misappropriated. Camshaft was in the news after several Byju's investors questioned its legitimacy last year.
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Don't miss these

TechCrunch swings by LA: At TechCrunch's StrictlyVC event in LA, we sat down with Founders Fund's Trae Stephens, who co-founded Andruil and Sol. We talked about his firm's investments (Boring Company, yes; X, no), and what sort of founders he looks to back. We also had buzzy startup Rabbit on stage, whose handheld AI device has taken off like a rocket in the past month. More on Rabbit here.

Waymo can now take you to the (SF) airport: As last week closed, Alphabet self-driving effort Waymo got the nod from the California Public Utilities Commission to expand its commercial operations. These can now include the city of Los Angeles, and trips to the San Francisco airport. I am honestly considering booking a trip to my beloved City by the Bay just to take a self-driving ride. Or Waymo could come to Providence. You know, please?

On the record with Nubank CEO: Few sectors were hotter than fintech during the last tech boom, and few regions grew as fast as Latin America did. At their intersection, Nubank rose to massive scale and went public. TechCrunch's Mary Ann Azevedo sat down with Nubank's CEO over the weekend to dig into the neobank's business as well as the landscape of tech companies in the region.

Wagely's fintech recipe cooks up $23M: Indonesian fintech startup Wagely grew on the back of its wage-access service, which offers workers salary advances without the predatory rates charged by other financial services. The startup is doing so well that it managed to secure a healthy round, despite funding to Indonesian startups declining some 87% last year compared to 2022.

Taiko wants to bring truly decentralized social networking to Ethereum: An issue with the Ethereum blockchain is that it can't handle many transactions at the same time. So, many 'layer 2' solutions, better known as L2s, have been built atop the blockchain to aggregate and batch transactions. Taiko thinks that those services are too centralized, however, so it's building its own L2 for its social service that it plans to be far more decentralized. The effort has seen the company raise $37 million, including a $15 million Series A.

Who is really raising money? That's the multi-billion dollar question, right? TechCrunch's Dominic-Madori Davis has all the notes on who is raising capital today – or more precisely, which groups are not raising as much as you might expect.

Speaking of funding to diverse groups: While the data linked above makes it clear that venture funding flows more to some people than others, some are not accepting the status quo as immutable. Derek Smith's Plug In South LA is making strides in accelerating startup activity in the U.S. city, focused on helping "aspiring entrepreneurs learn the ropes of growing a startup," Ron Miller reports.

Don't do this if you want to raise more capital: First-time founders that want to raise more venture capital should avoid selling too much of their company too early. Why? Because later investors might view limited founder stakes as a poison-pill against putting more cash into a startup.

TechCrunch's ongoing interview series with women in AI continues, with conversations with Francine Bennett, a founding member of Ada Lovelace Institute, and Karine Perset, who runs the Organization for Economic Co-operation and Development's AI unit.

We're going to see you at Early Stage, right? The list of venture investors who will be in attendance is getting to be pretty darn extensive.

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Before you go

Apple's graveyard: With Apple giving up on its car dreams, TechCrunch took a stroll down memory lane to dig up other projects that the tech giant has axed over the years.

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Friday, March 1, 2024

Epic Games, Spotify, others say down with Apple’s DMA rules

TechCrunch Newsletter
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By Christine Hall

Friday, March 01, 2024

Good afternoon, and welcome to TechCrunch PM! It's Friday yet again and the team has been busy.

First up, we were in Los Angeles just last night for our latest StrictlyVC event. Signal President Meredith Whittaker, Waymo Co-CEO Tekedra Mawakana, rabbit CEO and Co-Founder Jesse Lyu, Founders Fund Partner Trae Stephens and Lightspeed Ventures partner Faraz Fatemi joined us to discuss a wide range of topics, from the reasons AI could unseat entrenched companies, Waymo’s ascent, what it’s like for rabbit to ride the r1’s hype following its CES 2024 reveal. Don’t miss us next time for StrictlyVC London in May.

Today, several companies tell the European Commission how unhappy they are with Apple's DMA rules, and Threads says it will make its API available to more developers this summer. Plus, Ivanti hackers keep coming back, a better clean when you have to go, advances in pesticide control, new funding and a way to see what the weather is like inside the ocean.

Christine

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TechCrunch PM Top 3

Spotify, Epic Games and others have something to say about Apple: Apple's new DMA rules have already been widely criticized by developers and tech companies, and now a few others are piling on. Epic Games, Spotify, Proton, 37signals and other developers have formalized their complaints in a letter to the European Commission. They collectively argue that Apple has made a mockery of the new law and urge the EC to take "swift, timely, and decisive action against Apple" in order to protect developers.

Groq has got it going on: Groq, the AI chip startup, is not only forming a new business unit, but has also acquired Definitive Intelligence to boost its AI offerings.

Threads hearts developers: Meta's X rival Threads says its API should be more broadly available to developers by June, along with some new features.

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More top reads

More on Ivanti: Hackers continue to exploit flaws in Ivanti's widely used enterprise VPN appliance and are now targeting organizations across the U.S. defense sector.

Apple walks back its decision to block web apps: Who says Apple can't be nice? After making a decision last month to block web apps in the European Union, the consumer electronics giant said it will reinstate the functionality in the next public release of iOS 17.4.

A new clean where the sun don’t shine: Fohm rebrands to Saintly and gives you — and the environment — a better way to wipe your bottom.

Thoma Bravo takes Everbridge private: We've got an update for you on this deal that has Everbridge, a critical event management software company, going private in what is now a $1.8 billion all-cash deal by private equity giant Thoma Bravo.

Meta's now on the EU chopping block: Meta's controversial "subscribe for no ads" option for users in the European Union is facing questions from the European Commission.

Pitch Deck Teardown: See what Haje liked and didn't like about CommandBar's seed deck.

AgZen wants to keep pesticides where they belong: The company's approach uses AI so that instead of spraying too much, plants get sprayed just enough.

A conundrum only Shakespeare would understand: Five deep tech investors decided to put differences aside and work together.

This one time, at Upfront Summit: Read all about the rants, the talk of AI and what else went on at this week's Upfront Summit that took place in Los Angeles.

Weather from down under … water: Syrenna has built a versatile robotic platform that acts like a mobile weather station for the sea and is ready to emerge from stealth to enable precise, real-time monitoring of the oceans.

Money, money, money: TravelJoy, a tool for travel entrepreneurs and travel business operators, raised $10 million and is leveraging AI for its next phase of business. Rec emerges from stealth with $6.2 million to modernize parks and recreation management and bookings. And Karma3 Labs, now with $4.5 million, aims to solve the trust and safety issues going on in cryptocurrency.

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Before you go

MWC 2024: Just because Mobile World Congress is over doesn't mean the stories stop.

Instagram now has the "Friend Map" feature; maybe you were yearning for a midday cup of joe and were hoping one of your friends could join you. Swayy wants to go one step further than just saying where you are at the moment and has an iPhone app that enables you to share where you plan to go in a couple of hours or even a month from now.

And, if you don’t know what haptics are, you will by the end of this article. Brian Heater spoke with Ultraleap co-founder and CEO Tom Carter about adapting the technology for use in automotive and virtual reality. However, that’s not all the company can do with it.

Catch up on all the MWC coverage here.

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On the pods

On today's Equity, Mary Ann Azevedo and Alex Wilhelm dug into the most critical stories and themes from the week, including Stripe's valuation recovering, Fervo Energy's $221 million round, why VCs are investing in companies that shut down companies, and AI and the law. Listen here.

Check back next week when the Equity team will have an interview with Nubank's CEO.

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Musk sues OpenAI

TechCrunch Newsletter
TechCrunch AM logo

By Alex Wilhelm

Friday, March 01, 2024

Good morning! Today in TechCrunch AM we have news for AI founders (Nvidia is writing a lot of checks), a new lawsuit between Elon Musk and OpenAI over its mission, social media updates for the media types amongst us, and new developer-OS drama, this time in India.

Happy Friday everyone, let's get into it!

Alex

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TechCrunch Top 3

  1. Nvidia's startup investments soared last year: Venture capital investments might be slowing around the world, but Nvidia's been quite busy through its own corporate investing arm. Last year, the chip giant participated in around 46 deals, which was 280% more than its 2022 pace. TechCrunch's Kyle Wiggers dug into how those figures stack up compared to corporate venture capital activity from other chipmakers like Intel, Arm, and AMD.
  2. Musk sues OpenAI: Musk was a critical backer of OpenAI earlier in its life, but now the billionaire is taking the company to court over its structure, backing and focus. Remember when OpenAI went through a leadership crisis last year? The venture capital industry reacted as one to call for the exile of its former board and return Sam Altman to the company. They won. Now, Musk is kicking that very hornet's nest. I'm betting on the side of the argument with more money, and that's not Musk.
  3. Intuitive Machines' lunar lander broke more ground than you thought: For fans of space tech, Intuitive Machines landing its hardware on the Moon was a triumph. TechCrunch reports that the company's lunar jaunt actually broke ground in another way: through an innovative fuel choice that could open more doors for space work in the future.
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Don't miss these

How to survive a DTC boom and bust: Home goods DTC company Parachute made it through the direct-to-consumer boom and bust, when many companies of its ilk expanded quickly only to later deflate. Parachute is now moving into the brick-and-mortar world, so we had founder Ariel Kaye on Found to talk about how the company sourced materials, learned logistics and more.

Google removes some Indian apps over fee dispute: If you want to run a business via Android, Google wants you to hand over a chunk of your revenue. There are nuances to that point, but Google's recent move to yank some apps from the Play Store in India for not complying with its billing policies is an indication of what major mobile OS companies think of third-party developers. In feudal terms, Google thinks that it is a lord, and developers are pesky peasants who aren't turning over enough of their grain. Indian developers are incensed, as you can imagine.

Meta's news retreat continues: Social giant Meta intends to remove the News tab from Facebook in the United States and Australia this year. The company had deprecated the feature in several European countries last year. News has been a fading priority for Meta for some time –– the move will likely reduce traffic to news publishers, but may also limit Facebook's conflicts with countries and publishers alike.

Don't leak 2FA codes: The internet is not a series of tubes; it's a series of leaky tubes taped together with the hopes that the duct tape will prevent leaks. It's no surprise then that the system often fails. One good, recent example of that fact is YX International, which provides SMS routing services. The company left a database of two-factor authentication codes exposed to the internet without a password that would have allowed "anyone to access the sensitive data inside using only a web browser, just with knowledge of the database's public IP address," TechCrunch's Zack Whittaker reports. Not good!

The troubles of Electric Car Land: EV company Fisker is cutting staff to preserve cash. The company intends to lay off about 15% of its staff, and says that it doesn't have the funds it needs to make it for the next 12 months. Still, things could be worse: Lordstown Motors has been charged by the SEC for "misleading investors about the sales prospects of its Endurance electric pickup truck."

Also, NFX's James Currier will break down MVPs at TechCrunch Early Stage 2024!

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Before you go

All hail the Jacksonville Jumbo Shrimp: With some of Disney's IPs entering the public domain this year, there's a race afoot to put the newly-unlocked intellectual property into use. Enter the Jacksonville Jumbo Shrimp, the Triple-A affiliate of the Miami Marlins, an MLB team. They have jersey's coming up that employs Van Gogh's Starry Night and Disney's Steamboat Willie presentation of Mickey Mouse in a uniform collage that it is a lovely combination of cringe and flippancy.

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