Microsoft Teams Trouble

Hey ZipLawyer! Here's all the news you need to know plus how they impact Law Firms.

Coming up:

🚗 Why the VW-Rivian JV is a big deal
💻 Is Microsoft Teams anti-competitive?
⛏️ The one metal everyone wants

What you need to know this week

🍏 Wait it out: Apple is delaying new AI features in the EU and battling accusations of limiting app developers' market access, as it adapts to the EU's stringent Digital Markets Act.

🇦🇷 No bueno: Argentina's economy is in trouble again, shrinking 2.6% this quarter, with unemployment rising to 7.7% as it enters another recession.

🛍️ Amazon v Temu: Amazon plans to launch an online storefront for low-priced apparel and home goods, the company’s biggest move to date to counter the rise of discount upstarts like Temu and Shein.

✈️ Pump up the prices: Flying from the EU just got pricier. Lufthansa will add up to €72 to ticket prices to cover costs from new EU sustainable fuel regulations starting next year.

The VW-Rivian JV is a big deal

In Short: Volkswagen is investing $5 billion in a strategic partnership with Rivian to co-develop electric vehicles and software, signaling a major push to strengthen its position in the EV market.

What's Going On?

Volkswagen is throwing down a massive $5 billion to partner with Rivian, a move poised to spice up its electric vehicle playbook. Under the deal, they'll whip up some fresh EVs and software together. Rivian, on its part, gets a hefty financial boost—a crucial lifeline as the EV market cools and competitors rethink their strategies.

VW's been grappling with a few snafus—think delays and glitchy models—that have buyers wrinkling their noses.

• So what's the plan to solve this? VW puts $1 billion upfront in Rivian, with the possibility of pouring in up to $4 billion more. But the deal isn't just about money, it's about gaining a stronger foothold in the U.S. and easing their over-reliance on the Chinese market, where local brands have been giving them a run for their money.

What Does This Mean?

VW’s hefty investment in Rivian signals a strategic pivot to more collaborative efforts in the EV arena, especially at a time when the industry faces a slowdown in demand. For Rivian, this deal is not just about cash; it's about survival and scaling up production without the financial hemorrhage it’s been enduring—about $39,000 lost per vehicle last quarter!

What’s clear is that both companies are navigating a tumultuous market, where buyers are still hesitant to fully embrace EVs, and giants like Tesla are feeling the heat too. This deal could be a game-changer for VW and Rivian or just another ambitious bet in the unpredictable world of electric vehicles. Either way, the industry’s eyes will be glued to how this gamble unfolds.

How does this impact Law Firms?