The week’s news included; NFL loses $4.7bn antitrust lawsuit, US Supreme Court allows criminalisation of homelessness, Shein files for London IPO, Record labels sue AI company behind “BBL Drizzy”.

Below are our top 10 stories that you need to know about. Be sure to check our X page, Facebook page, TikTok page and Instagram Page, for regular posts of important headlines. Get all the important stories and insights straight into your inbox by subscribing to our mailing list here.

Opinion articles of the week: 

  • BBC News – Tax rises hard to avoid over next 5 years, says IFS
  • City A.M. – Why markets are concerned by the French election
  • BBC News – What is ‘AI washing’ and why is it a problem?
  • City A.M. – Let’s be honest, all regulation – even hedgehog holes – costs public money
  • CNBC – The humble onion could be holding India’s economy hostage

1. CHEVRON DEFERENCE OVERRULED

The US Supreme Court has overturned a critical ruling which gave federal agencies wider scope to apply and enforce laws. Known as the Chevron deference, the original ruling stems from a 1984 case, Chevron v Natural Resources Defense Council. The court’s decision gave agencies the power to interpret ambiguous laws as they see fit. The Environmental Protection Agency for example, relied heavily on the Chevron deference to apply laws without fear of legal action from big businesses. In 2020, a lawsuit was launched by fishermen against the National Marine Fisheries Service, backed by Trump and commercial fishing companies. Last week, the court ruled that the Chevron deference could not be relied upon and overturned it. 

This could have huge reaching ramifications. Financial markets, environment and even workplace safety could soon be deregulated as big business challenges government agencies. The Securities and Exchange Commission for example, will no longer have power to unilaterally enforce financial fraud regulations as a result and will face greater challenges to do so.

2. NFL ANTITRUST VERDICT

The US National Football League (NFL) has lost a lawsuit which could cost up to $14 billion. The NFL’s “Sunday Ticket” package allows viewers to watch games that are not shown nationally, only on local networks but requires them to buy a whole package. Over 2.4 million residential subscribers paid for the “Sunday Ticket” packages. A jury found that this practice breaches antitrust law and ordered the NFL to pay $4.7 billion in damages. The damages could be tripled if the ruling is upheld on appeal, meaning the NFL could be forced to pay $14.1 billion in damages. The NFL turned over $18 billion last year so this ruling could have a huge financial impact on the league.

3. APPLE SUED BY EU OVER DMA BREACHES

EU regulators have accused Apple of breaching the Digital Markets Act (DMA) with regards to its app store. The EU Commission accuses Apple of squeezing out rivals by preventing developers from informing customers about alternative app stores. This means that app developers will always face the 30% commission charged by Apple on in-app purchases. Apple was already ordered to allow alternative payment options earlier this year. Apple can review the preliminary and address them. If the EU finds Apple in breach however, it could face a fine of up to 10% of global revenue, a huge $38 billion. This would be the first fine issued under the DMA. 

4. SHEIN FILES FOR LONDON IPO

Shein has confidentially filed to list on the London Stock Exchange. The Chinese fast fashion giant was valued at £52 billion in its latest funding round and will be seeking a similar valuation. Shein still requires approval from Chinese regulators to shift its listing venue from China to the UK. If approved, then Shein will be able to file publicly. 

Shein had initially sought to list on the New York stock exchange but received huge pushback from lawmakers. There was concern about a Chinese giant with a huge rapsheet of workers’ rights issues, trademark infringement lawsuits and other questionable business practices. The company had to drop its ambitions to list in the US and instead turned to London. Shein’s London listing could provide a huge boost for the exchange but could also backfire if issues mount. 

5. SUPREME COURT PERMITS CRIMINALISATION OF HOMELESSNESS 

The US Supreme Court has ruled to allow cities to criminalise homelessness. In a 6-3 vote, the court held that local governments enforcing laws that criminalise sleeping in public places do not violate constitutional restrictions on cruel and unusual punishments. The case in question stems from the US state of Oregon where three homeless people receive criminal penalties for rough sleeping on the basis of cleanliness and safety. The homeless people claimed this breached the US constitution as they did not have any public shelters. The court held that the city could issue criminal penalties for camping or sleeping in public places. This comes as homelessness in the US is reaching its worst levels since records began in 2007. In 2023 there were 653,000 homeless people in the US. 

6. RECORD LABELS SUE AI COMPANIES

A group of record labels are suing AI companies Suno and Udio for copyright infringement on an enormous scale. The Recording Industrial Association of America which includes labels like Sony, Universal and Warner Records brought the action forward. Suno and Udio allow producers to create music using AI. Udio was the platform used by producer Metro Boomin to create the parody song “BBL Drizzy”. Suno is even partnered with Microsoft. The record labels however, argue that the companies steal existing music to produce similar works. They are now seeking $150,000 in compensation per work. 

Copyright holders challenge AI firms saying that they are unlawfully using their content to train their AI tools . AI companies however, say they are permitted to use the material under fair use laws. These laws permit copyrighted works to be used without a licence in some cases. Furthermore, they argue machine learning is similar to how humans hear and view content and produce their own works. As AI becomes more prominent these conflicts are only likely to increase. 

7. META’S AI TRAINING DELAYED

Meta’s plans to use public posts on Instagram and Facebook to train artificial intelligence (AI) have been delayed. 11 lawsuits against the tech giant were lodged in the EU seeking to block the move. UK and EU based users will be affected by the new plans. Users will be notified if and when the changes come into effect and will have the option to object to their data being used. They will be required to fill out a form to explain why they don’t want their posts being processed. Under GDPR, users have the right to object to their data being processed. Meta can, however, reject the objection if the user data is essential for legitimate business purposes, in line with GDPR. Other users in locations without such data protection laws like the US will not have the option to object. The Irish data protection watchdog requested Meta to delay the plans. Meta aims to resolve the legal disputes and regulatory issues over the summer. 

8. GETIR BREAKS UP BUSINESS

Food delivery company Getir is breaking up its business after scrapping its UK operations. Shareholders backed plans to split Getir into two companies, its food delivery business and another company for its other operations like ride-hailing. The plans will see a fresh $250 million from shareholders to help wind down its UK and European operations along with funding its Turkish delivery business.

Getir is a Turkish based company which was once valued at nearly £10 billion. Its super fast delivery business model aimed to get groceries and food delivered to customers in 20 minutes. It enjoyed great success during the pandemic but has since fallen into financial difficulty. As the cost of living crisis hit and consumers cut back on deliveries the companies lost millions. In April 2024, the company announced it would abandon its US, UK and EU operations and focus solely on its Turkish business. 

9. PREMIER LEAGUE CLUBS LOSE RECORD AMOUNT

Premier League Football clubs have lost a record amount of money despite rising revenue. Clubs collectively posted pre-tax losses of £685 million in the 2022-2023 season. Revenue however, across the clubs surpassed £6 billion, up 16% from the season before. Premier League clubs are locked in disputes over financial fair play. Most significantly, Manchester City has 115 charges levied against it over historic revenue reporting breaches. Manchester City has denied wrongdoing and has even sued the Premier League in response. New rules on spending, the Profitability and Sustainability Rules (PSR) are set to come into force. PSR will restrict spending on players including wages, agents, and transfer amortisation fees. Clubs will only be able to spend up to 85% of revenue and will face other restrictions.

10. MARCFARLANES STEPS UP IN PAY WAR

Silver circle law firm Macfarles has ramped up its newly qualified (NQ) lawyer salaries by 22%, making it one of the highest paying firms in the city. NQ lawyers will now earn a huge £140,000 up from £115,000. Trainee pay is also up from £50,000 to £56,000 for first years. The NQ salaries are still behind the magic circle firms Linklaters and Freshfields who recently increased their NQ pay to £150,000 respectively. The industry is striving across the board to attract top talent and salaries are being bumped up to achieve this. As these salaries rise however, do expectations from the firms and work life balance often diminishes.