☕️ Hot seat

Why the DOJ is suing Apple... March 22, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Pendulum]( Good morning. Friendly reminder: Tax Day is arriving soon, and if you haven’t cranked out your returns yet, this upcoming weekend is a great opportunity. And if you’ve already done your taxes, here’s a cookie . —Matty Merritt, Cassandra Cassidy, Molly Liebergall, Adam Epstein, Neal Freyman, Sam Klebanov MARKETS Nasdaq 16,401.84 +0.20% S&P 5,241.53 +0.32% Dow 39,781.37 +0.68% 10-Year 4.271% -0.2 bps Bitcoin $65,410.83 -3.64% Reddit $50.31 +47.97% *Stock data as of market close, cryptocurrency data as of 10:00pm ET. [Here's what these numbers mean.]( - Markets: [Stocks soared]( again on Thursday, pushing the major indexes to new records as tech companies overperformed and investors hung onto the good vibes from this week’s Fed meeting. It was a scintillating debut for Reddit, which rocketed nearly 50% in its first day as a public company.  BIG TECH [The DOJ wants to knock Apple down a peg]( [Apple antitrust lawsuit graphic]( Annissa Flores After finally recovering from a social media barrage of VR goggle mockery, Apple is about to enter a much bigger battle. The Justice Department joined 15 states and Washington, DC, in [suing]( the tech giant over allegedly monopolistic practices, citing everything from Apple’s secretive tap-to-pay chip to its green text bubbles. The 88-page suit is basically a greatest hits collection of every critic’s gripes with Apple. Highlights include: The app store is back in the hot seat. The DOJ accused Apple of suppressing cloud-streaming apps for video games, and said the company’s policies have prevented competitors from creating “super apps.” Other companies (including Epic Games, in a very heated [lawsuit]( have long complained about Apple charging an exorbitant 30% commission on sales through its app store. Its systems are under lock and key. The lawsuit also alleges that Apple purposefully makes it harder for iPhone owners to use products outside its ecosystem. And the DOJ pointed out that Apple is dragging its feet on letting Android users send messages with iMessage. - Many tech entrepreneurs have tried to create [workarounds]( but Apple has shut them down. - Apple did agree last year to update the quality of multimedia messages between iPhones and Androids. Apple Pay or the highway. The DOJ claims that third-party developers cannot create digital wallets for iPhones, since the company has its own wallet software. Apple denied the allegations. It historically has said its products and services are secretive in order to protect from malware and fraud. What’s next? It will likely be years before we get a verdict on whether or not Apple needs to change any of these practices. In the meantime, the lawsuit means the DOJ, which promised to crack down on corporate monopolies, has now completed its punchcard of suing every Big Tech company (Amazon, Google, Meta, and now Apple) on antitrust grounds.—MM   PRESENTED BY PENDULUM [Curb your sugar cravings]( [Pendulum]( Your GLP-1 (the hormone that’s essential for appetite regulation) can decrease as you get older, which might explain why your sweet tooth feels bigger than ever. Maintain a healthy balance with Pendulum’s new GLP-1 probiotic. This probiotic blend is specially formulated to help you [increase your GLP-1* naturally]( and maintain your gut health. And Pendulum is offering you 20% off your first month of their *just-launched* GLP-1 probiotic or any Pendulum probiotic membership. [Boost your GLP-1]( with this probiotic developed by PhD scientists—with 91% reporting reduced overall food cravings.** [Crush your cravings]( with 20% off your first month of membership. WORLD [Tour de headlines](#) [President Joe Biden and House Speaker Mike Johnson]Pool/Getty Images Congress unveiled a $1.2 trillion spending bill ahead of tonight’s shutdown deadline. Like you did with your senior year thesis, lawmakers turned in their lengthy federal funding package yesterday just under the wire—though it’s unclear if they’ll have time to vote on it to prevent parts of the government from shutting down [at midnight tonight](. The bipartisan bill includes, among other things, funding for border security and education programs, in an effort to appease both sides of the aisle. Republican leaders signaled that they intend to hold a vote today, waiving their self-imposed rule that legislators get 72 hours to review bills before they vote. Disney’s proxy fight just got interesting. Nelson Peltz, the billionaire hedge fund manager and activist investor trying to gain seats on Disney’s board, [won a key endorsement]( yesterday that could prove decisive in his bitter corporate battle against CEO Bob Iger. Advisory firm Institutional Shareholder Services (ISS) recommended that Disney shareholders vote to elect Peltz at the company’s April 3 meeting, citing “the major missteps and severe consequences” of Disney’s recent succession debacle. Iger, who has the support of the Disney family, previously said the ISS recommendation played a critical role in the company’s last proxy fight 20 years ago. ⚕️ Man gets first-ever kidney transplant from pig. A 62-year-old man with end-stage kidney disease successfully [received a kidney]( from a genetically engineered pig at a Boston hospital last weekend. The animal organ began fulfilling its function of producing urine shortly after the surgery, and the patient has reportedly been recovering well so far, [per the New York Times](. Biotech company eGenesis altered the DNA of the organ-donor pig to make its kidney more compatible with the human body and eliminate the risk of certain animal pathogen infections. The breakthrough offers promise for more than 100,000 Americans on kidney transplant waiting lists amid a human kidney shortage. SPORTS [What’s going on with baseball’s golden boy?]( [Los Angeles Dodgers’ Shohei Ohtani and his interpreter Ippei Mizuhara attending a press conference]( JungYeon-Je/Getty Images As the Los Angeles Dodgers won their season-opener in South Korea this week, news broke that the team fired Japanese superstar Shohei Ohtani’s interpreter (and close friend) Ippei Mizuhara over allegations of theft related to an illegal gambling operation. Here’s what we know about the situation that’s rattling the sports world: - ESPN [reported]( that, on Tuesday, Mizuhara said Ohtani himself sent $4.5 million to a bookmaker to pay off Mizuhara’s gambling debts. - But on Wednesday, Ohtani’s lawyers said he didn’t make the payments, but that he was “the victim of a massive theft” by his interpreter. - Later that day, Mizuhara changed his story. He told ESPN that Ohtani didn’t know about any of it and that he definitely did not transfer any money. Mizuhara has emphasized that he did not bet on baseball, which doesn’t help much since betting on all sports is illegal in California. The MLB said Ohtani is not currently under investigation. Big picture: The saga risks dinging Ohtani’s reputation in Japan, where he’s known as “[the perfect person]( For the Dodgers, seeing his name in the same sentence as “illegal gambling” is not something they expected to kick off Ohtani’s new [$700 million contract](. The incident also puts another intense spotlight on the sports betting industry, as companies like FanDuel and DraftKings soar in popularity.—CC   TOGETHER WITH INTELGENX [IntelGenX]( End of the pill era? Up to 40% of adults have trouble swallowing pills. That’s why [IntelGenx]( founded by the co-inventor of the Listerine strip, is working to extend the same patented oral strip technology to medicine, increasing drug absorption and reducing side effects. You can [invest in IntelGenx as they try to revolutionize the $510b pharma market](. HEALTH [Nvidia-powered AI nurses are scrubbing in]( [Woman video chats with AI nurse in Nvidia demo]( NVIDIA If you love Black Mirror, you’re probably gonna hate this: King chipmaker Nvidia announced this week that it’s partnered with healthcare startup Hippocratic AI to offer a roster of [beautifully airbrushed]( $9/hour “nurses” who could replace humans in areas of patient care that can be done virtually. More than 40 healthcare providers are currently testing the [tech]( according to Gizmodo. Hippocratic’s vision for the AI bots includes… - Non-diagnostic, patient-facing work that Hippocratic considers “low risk,” like post-op check-ins, nutritional guidance, or pharmacy calls. - Offsetting years-long nursing shortages in the US while saving healthcare providers money on human salaries. (Many public health experts and nurses say cost-cutting is what caused staff shortages [in the first place]( In a demo [video]( from Nvidia, a “GenAI Healthcare Agent” named Rachel (pictured above) conducts a post-appendectomy follow-up with someone acting as a patient, and is shown asking and answering case-specific questions in real time. Zoom out: Because Big Tech has been outspending venture capital groups on all the hot AI startups, VCs are investing in [industry-specific AI projects]( Hippocratic, which was just valued at $500 million after a funding round that included Andreessen Horowitz.—ML   GRAB BAG [Key performance indicators](#) [Facebook poke]Annissa Flores Stat: Luckily, the latest Gen Z trend is much easier to understand than “Livvy just rizzed up Baby Gronk, the new Drip King.” Young people have apparently been very into “poking” each other on Facebook, ever since a [design change]( earlier this year made the button more visible to users. Pokes have increased 13x since the change, Meta announced, more than half by users aged 18 to 29—some of whom were not alive when the feature was introduced in 2004. Facebook has never specified what the poke is for: Many use it to say hello, others to digitally flirt or annoy their enemies. Whether zoomers are poking ironically or if they genuinely enjoy the feature, Meta likely doesn’t care as long as it boosts engagement with the coveted demographic. Quote: “Keep your filthy hands off of Trump Tower!” Donald Trump’s team has been [texting supporters]( in all caps to let them know he’s in a bind, asking them to chip in some cash before New York Attorney General [Letitia James]( begins seizing his properties over a failure to pay a $464 million bond stemming from his NYC civil fraud trial. The urgent plea comes after dozens of companies refused to spot the former president the dough, fearing he might lose his appeal. State officials are reportedly gearing up to snatch his assets, including a golf course and a posh estate, if he doesn’t find sponsors by Monday. Read: Hackers figured out how to open millions of hotel keycard locks. ([Wired]( QUIZ [Quiz madness]( [New Friday quiz image]( The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to picking all the college basketball upsets correctly yesterday. It’s that satisfying. [Ace the quiz](. NEWS [What else is brewing](#) - [Walmart]( is adding high-end products to more than 800 locations in a bid to lure wealthier shoppers. - [Airline CEOs]( have reportedly requested an intervention audience with Boeing’s board of directors to address the manufacturer’s growing list of problems. - [China and Russia]( made a deal with Houthi militants to provide political support for the Yemen-based group in exchange for their ships sailing through the Red Sea without being attacked, Bloomberg reported. - [The Biden administration]( canceled $6 billion in student loans for public service workers. - [DoorDash]( announced it’s rolling out fast-food delivery via drone in the US, which means exactly what you think it means: flying Baconators. RECS [Friday to-do list] Branch out: This big ol’ beech tree in Poland won Europe’s 2024 [Tree of the Year]( contest. Join the search: The internet is rallying to [help find]( an Atlanta woman’s dog after the vet lost it. Soothe: An interactive map of all the [thermal springs]( in the US. Watch: The phantasmagoric [trailer]( for Mad Max: Fury Road spin-off Furiosa, which will premiere at Cannes in May. Crack open a Celsius: $CELH CEO John Fieldly joined the After Earnings show to discuss his plans to win the energy drink race. [Listen here](. Find your perfect fit: Swimwear made by women for women. [Andie Swim]( offers three levels of coverage + support in sizes XS–3XL. Yes, please. [Save 20% with code BREW20]( *A message from our sponsor. GAMES [The puzzle section](#) Jigsaw: Blast off with Starship in today’s jigsaw puzzle. [Head to the launch site here](. Friday puzzle In which country was this photo taken? [Signs pointing in different dirrectios ]Reddit user panzercaptain ANSWER Cape Point in Cape Town, South Africa [Source]( Word of the Day Today’s Word of the Day is: phantasmagoric, meaning “featuring a confused group of real or imagined images that change quickly, as in a dream.” Thanks to Eli from Miami, FL, for the trippy suggestion. Submit another [Word of the Day here](. ✢ A Note From Pendulum *Based on preclinical studies. **Based on a consumer survey of 274 people. ✳︎ A Note From IntelGenX This is a paid advertisement for IntelGenx’s Regulation A Offering. Please read the offering circular at [investintelgenx.com/](. Written by [Adam Epstein]( [Neal Freyman]( [Matty Merritt]( [Cassandra Cassidy]( [Molly Liebergall]( and Sam Klebanov Was this email forwarded to you? Sign up [here](. Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. 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