Blinken In Israel, Truth Social Listing, Apple Antitrust Suit

2024-03-22 00:12:50

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4Speaker 4
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Secretary of State Tony Blinken visits Israel.

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American officials are putting pressure on Israelis as Gaza braces for famine.

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We must not allow that to continue.

3Speaker 3
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Are negotiations toward a ceasefire getting anywhere?

4Speaker 4
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I'm Steve Inskeep with Michelle Martin, and this is Up First from NPR News.

00:21.34 – 00:27.28

Donald Trump is ready to sell stock in Truth Social, a trader says Trump's diehard supporters

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want to buy.

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While fundamentally I don't get it, I'm going to trade it because it's going to move.

00:34.08 – 00:37.68

How much money could the former president raise to pay his legal costs?

3Speaker 3
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And the Justice Department hits Apple with an antitrust lawsuit for monopolizing the

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smartphone market.

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How might this affect smartphone users, both people who have iPhones and people who don't?

00:47.96 – 00:48.58

Stay with us.

00:48.64 – 00:50.34

We'll give you the news you need to start your day.

2Speaker 2
00:56.94 – 01:01.08

On the TED Radio Hour, MIT psychologist Sherry Turkle.

5Speaker 5
01:01.52 – 01:07.02

Her latest research into the intimate relationships people are having with chatbots.

2Speaker 2
01:07.56 – 01:14.62

Technologies that say, I care about you, I love you, I'm here for you, take care of me.

5Speaker 5
01:15.04 – 01:18.14

The pros and cons of artificial intimacy.

01:18.66 – 01:20.78

That's on the TED Radio Hour from NPR.

3Speaker 3
01:22.28 – 01:26.84

U.S. Secretary of State Antony Blinken is visiting Israel again today after stops in

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Saudi Arabia and Egypt.

4Speaker 4
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Israel's response to Hamas in Gaza has killed tens of thousands of people, and now hunger

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is killing people, too.

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The United Nations and independent experts say famine is imminent in Gaza, where people

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have already starved to death.

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Here's Blinken last night in Cairo.

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Children should not be dying of malnutrition in Gaza or anywhere else for that matter.

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A hundred percent of the population of Gaza is experiencing severe levels of acute food

3Speaker 3
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insecurity.

4Speaker 4
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We cannot, we must not allow that to continue.

3Speaker 3
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We're joined now by NPR international correspondent Eya Bertawi in Dubai.

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Eya, good morning.

5Speaker 5
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Good morning, Michelle.

3Speaker 3
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So we heard from Mr. Blinken saying children shouldn't be dying of hunger in Gaza, but

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as we just said, doctors and aid workers say many already have.

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Is that the focus of this trip?

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And I want to mention that this is Mr. Blinken's sixth visit since the October 7th attacks

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by Hamas that killed, you know, 1,200 people and where hostages were taken and so forth.

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Is that the focus of this trip?

5Speaker 5
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Well, I mean, with each trip he's come with a new message, and the message this time does

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highlight this rift that's growing between the Biden administration and Israel's government,

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which is led by Prime Minister Benjamin Netanyahu.

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Now, what the White House is doing is it's throwing its weight behind ceasefire talks

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being mediated by Qatar and Egypt for Hamas to release some of the hostages taken on October

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7th in exchange for the release of hundreds of Palestinian captives and to flood Gaza

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with aid to stave off looming famine there.

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Now, Biden says he hopes a six-week truce could then be extended to basically wind down

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this war that's decimated Gaza and killed more than 32,000 people there, according to

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the health ministry.

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But Israel's government says Hamas operates in Rafah.

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That's the southern town where most of Gaza's population have been displaced, and they've

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planned a ground operation there.

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So another point of Blinken's message is to say this would be a mistake, and he says this

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is something the U.S. cannot support.

3Speaker 3
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Aya, what about those ceasefire talks?

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Where do they stand now?

5Speaker 5
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Blinken said yesterday in Cairo there are still serious gaps between Hamas and Israel

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on the terms of this truce, and the heads of the CIA, Egyptian, and Israeli intelligence

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are supposed to be meeting again today in Qatar to talk about that.

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Now, Israel says it launched a raid on a key hospital in Gaza City this week where Hamas

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had regrouped to pressure those talks.

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But regardless, Blinken says a ceasefire cannot be the only way to get aid in to people who

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need it in Gaza, and he said, quote, Israel needs to do more.

3Speaker 3
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So the U.S. continues to ramp up the pressure.

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What has Israel's response been to U.S. calls to do more?

5Speaker 5
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Israel says it is allowing an aid, but it's very limited because they don't want Hamas

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to benefit from it.

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Aid groups, though, say it is not nearly enough to feed the population, and now the White

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House is urging Israel to loosen its border controls to get that aid that's sitting on

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trucks and in warehouses to people starving to death just a few miles away across the

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border.

3Speaker 3
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And, Eya, before we let you go, what can you tell us about the latest on the situation

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on the ground now in Gaza?

5Speaker 5
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I mean, look, we've seen images of these desperate crowds grabbing aid off trucks, you know,

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bags of flour, and children just wasting away in hospitals, literally dying of hunger, especially

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in the north of Gaza.

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The U.N. is looking for better ways to distribute that aid with the help of local police in

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Gaza and community leaders, or what they're known as clans or popular committees.

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Now, these clans say they're willing to help, but they don't intend to replace Hamas on

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the ground and have denounced Israel.

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But this week we saw a string of Israeli attacks on these guys, from clan members to senior

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police officers whose job it is to oversee the distribution in the north.

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Israel says the police are an arm of Hamas, and they didn't respond to our request for

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comment on those airstrikes.

3Speaker 3
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That is NPR's Eya Bechawi in Dubai.

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Eya, thank you.

5Speaker 5
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Thanks, Michelle.

3Speaker 3
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First this week, Reddit went public, and as soon as today, Truth Social might be next.

4Speaker 4
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Donald Trump's social media platform is seeking to merge with a little-known public company.

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That company's shareholders are scheduled to vote on the merger later this morning,

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and if it goes through, it sets the stage for stock sales, and Trump stands to make

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a lot of money, just as he really needs it.

3Speaker 3
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NPR's Raphael Nam is here with us to bring us up to speed.

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Good morning.

1Speaker 1
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Good morning, Michelle.

3Speaker 3
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Raphael, I understand that this is not the same process for going public that Reddit

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used yesterday.

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Can you explain what's happening here?

1Speaker 1
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This is supposed to be a simple vote, but the whole process has been so convoluted.

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It's a shell company.

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It was specifically created to merge with Trump's company.

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In markets, it's called a backdoor listing.

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It's a way to go public in a different way from a traditional IPO.

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And later this morning, shareholders need to actually approve the merger.

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The big question is if we're going to see enough shareholders show up to vote.

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If that goes through, though, that would be fantastic news for President Trump.

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He would own over 50% of the new company.

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That would be worth over $3 billion.

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That's three with a B. A huge chunk of change.

3Speaker 3
06:13.86 – 06:17.28

Okay, so $3 billion, like you said, a huge chunk of change.

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Is Truth Social worth that much?

1Speaker 1
06:19.24 – 06:20.46

No, it is not.

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I mean, let's look at the numbers.

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This is a company that only had over $3 million in sales for the first nine months of last year.

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That's three with an M this time.

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And he lost nearly $50 million.

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Nonetheless, the value here is President Trump.

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Without Trump, there is no Truth Social.

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He has millions of supporters.

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And right now, a lot of the shareholders in the deal are believed to be Trump supporters.

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They are the true believers.

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They are people who want to support Trump no matter what.

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And they will happily buy the shares.

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And then there are the professional investors like Matthew Tuttle, who runs his own investment firm.

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I reached out to him yesterday to see why he's investing in the company.

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And he was upfront about it.

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He thinks he can make a quick buck.

4Speaker 4
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While fundamentally, I don't get it, I'm going to trade it because it's going to move.

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It's going to have a rabid following.

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And it's going to be a fun stock.

1Speaker 1
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But of course, like I was saying, nobody stands to gain more than Trump.

3Speaker 3
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So, can the former president dump his shares immediately and also make a quick buck?

1Speaker 1
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So this is where Trump could run into a problem.

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That's because under the merger, he has to hold on to his shares for another six months.

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But this is Donald Trump.

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So, I mean, who knows?

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He could work out a side deal with the other shareholders.

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Because the bottom line is that he needs to raise money immediately for all his legal cases.

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He does have the clock ticking.

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This Monday, he has to come up with over $400 million to post bond.

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That's for New York's fraud case against him, his family, and the Trump organization.

3Speaker 3
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How soon will those shares start trading?

1Speaker 1
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Well, if the shareholders do approve the deal today, it would start trading as a new company

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by next week.

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It could be very volatile, I'm told.

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But hey, it would now be officially called Trump Media and Technology Group with a new

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stock symbol, D-J-T, Donald J. Trump.

3Speaker 3
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That was Rachel Neum from NPR News here with us in the studio.

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Rachel, thank you.

1Speaker 1
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Thank you, Michelle.

3Speaker 3
08:24.74 – 08:28.78

For years now, Apple has portrayed itself as the responsible corporate citizen with

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beloved product designs.

4Speaker 4
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Now the Justice Department and 16 states are suing Apple, saying its smartphones were designed

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to limit competition.

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Attorney General Merrick Garland says Apple profits not by making its own products better,

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but by making other products worse.

3Speaker 3
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Wendy Lee covers entertainment and business for the Los Angeles Times, and she's with

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us now from the San Francisco Bay Area to tell us more about it.

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Good morning, Wendy.

2Speaker 2
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Good morning.

3Speaker 3
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So obviously, it's a big deal when the Justice Department takes on one of the world's biggest

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companies.

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But how big of a deal could this be for consumers?

2Speaker 2
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This could be a really big deal for consumers because Apple owns the hardware, the iPhone,

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the software behind it, and also all the apps on the iPhone have to go through the App Store,

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which Apple controls.

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So if the DOJ succeeds in this lawsuit, that could dramatically change how Apple does business,

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which could theoretically cause prices to be less for consumers.

3Speaker 3
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So in his remarks, Attorney General Garland made his case for how he said consumers are

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suffering from this alleged monopoly.

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This is what he said.

4Speaker 4
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Fewer choices, higher prices and fees, lower quality smartphones, apps and accessories,

1Speaker 1
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and less innovation from Apple and its competitors.

3Speaker 3
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A lot of consumers get their smartphones through companies like AT&T or Verizon, who offer

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discounts and even free phone upgrades with contracts.

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I mean, any time you turn on the television, you see those.

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So how does the DOJ argue that we're actually paying more money for their iPhones because

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of Apple's business practices?

2Speaker 2
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Because Apple owns the iPhone, as well as the software and the App Store, that Apple

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also sells all these accessories with the phone.

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So if you're an Apple user and you're going to use a smartwatch, you probably are going

10:12.86 – 10:17.10

to buy an Apple Watch, and Apple Watches only work with iPhones.

10:17.82 – 10:22.04

So if one wanted to buy a Google phone, all of a sudden you have to buy a new smartwatch

10:22.04 – 10:24.48

because your Apple Watch won't work with the Google phone.

10:24.48 – 10:29.82

And so I think that's one way in which the DOJ is arguing that stifles competition.

10:30.48 – 10:37.06

The other way is in the App Store itself, that Apple takes a up to 30% cut of the App

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Store subscriptions and in-app purchases, and many developers pass on that cost to consumers.

3Speaker 3
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So how's the company responding?

2Speaker 2
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Well, the company disagrees with the lawsuit, and also the company believes that it threatens

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how Apple does business, and also says it could hinder its ability to create the type

10:56.64 – 10:58.78

of technology that people expect from Apple.

3Speaker 3
10:59.12 – 11:03.56

So if this lawsuit does force Apple to change its behavior, can you just give us a sense

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of how consumers might benefit?

2Speaker 2
11:06.28 – 11:11.50

Yeah, I mean, I think that some of the ways that consumers could benefit is lower prices

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on apps.

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Also that some of the functionality between iPhone users and Android users, such as when

11:20.86 – 11:27.94

Apple users use iMessage to message Android users, that green message that you get on

11:27.94 – 11:29.96

your iMessage, that might change.

11:30.34 – 11:31.88

That functionality might improve.

11:32.50 – 11:39.36

And it's also possible that Apple might open up its App Store to other types of apps that

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the DOJ is alleging that it hasn't really been open to.

3Speaker 3
11:43.12 – 11:45.46

All right, so potentially some big changes.

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And here's what I want to mention.

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Apple is a financial supporter of NPR, but we very obviously cover them as we cover any

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other company.

11:52.38 – 11:54.30

That is LA Times reporter Wendy Lee.

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Wendy, thank you so much.

2Speaker 2
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Thank you.

3Speaker 3
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And that's Up First for Friday, March 22nd.

12:03.08 – 12:03.80

I'm Michelle Martin.

4Speaker 4
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And I'm Steve Inskeep.

12:05.06 – 12:09.88

Today's Up First was edited by Mark Katkoff, Julia Redpath, Alice Wolfley, and Ben Adler.

12:10.18 – 12:13.60

It was produced by Ziad Butch, Ben Abrams, and Taylor Hayden.

12:13.60 – 12:18.12

We get engineering support from Stacey Abbott, and our technical director is Zach Colman.

12:18.44 – 12:22.38

Join Up First this weekend with Scott Simon and Ayesha Roscoe, and we'll see you back

12:22.38 – 12:22.86

here on Monday.

3Speaker 3
12:23.10 – 12:25.36

Your next listen is Consider This from NPR.

12:25.76 – 12:29.56

The U.S. currently makes zero of the world's leading-edge semiconductor chips.

12:29.94 – 12:32.80

By 2030, the Biden administration wants to make a fifth of them.

12:33.30 – 12:34.34

How will America get there?

12:34.52 – 12:35.80

Listen to Consider This.

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