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UK targets Apple and Google's mobile platforms for regulation

1. UK's CMA proposed 'strategic market status' for Apple and Google. 2. Regulation aims to enhance competition and user choice in app stores. 3. Apple argues changes may compromise user security and privacy. 4. Final decisions on the proposal will be made in October. 5. CMA could address in-app purchase commissions and app review processes.

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FAQ

Why Bearish?

Regulatory scrutiny over in-app purchases can reduce Apple's revenue. Past instances show how increased regulation negatively affected tech giants' market positions.

How important is it?

The proposal directly threatens Apple’s app revenue model, suggesting a significant impact on profitability.

Why Short Term?

The final decision in October could lead to immediate market reactions. Companies often see price movements quickly following regulatory news.

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