Three financial news stories: U.S. sues Apple in antitrust case, Chilean economy shows weak growth, Brazil cuts interest rate again

The U.S. versus Apple, a landmark lawsuit

The U.S. Department of Justice, along with several states, filed a lawsuit against Apple, accusing the company of monopolizing the smartphone market with its strategy of selling iPhones. The lawsuit, which marks a new measure by Joe Biden’s administration against technology giants, claims that Apple limits competition and innovation.

This legal action joins other antitrust lawsuits directed against large technology companies such as Google, Meta and Amazon.

The Justice Department argues that Apple uses its power to obtain more money from consumers and other players in the market of applications and services, although Apple denies the accusations.

Chile’s economy shows weak growth

Chile’s GDP grew by only 0.2% in 2023. The figure exceeded market expectations, but showed a sharp decline from the previous year. The downturn in the commercial sector was one of the main factors hindering growth.

Despite the contraction in consumption and exports, GDP is expected to rise 1.8% in 2024, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

Brazil lowers its interest rate again

Brazil’s Central Bank has reduced the basic interest rate to 10.75% per annum in response to inflationary pressures. According to state-owned Agencia Brasil, this is the sixth consecutive interest rate cut. The Monetary Policy Committee (Copom) voted unanimously for this 0.5 percentage point cut and indicated the possibility of another similar reduction in May.

Despite the news, inflation remains an issue of concern for Brazilians. The official IPCA index reached 4.5%, a number which exceeds the target set for 2024.

Author: Marina Vanni