Oh Cluck

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🪓 Job Cuts. Britain’s retailers and regulators are wielding the axe as they face rising costs and tighter budgets. J Sainsbury is trimming 3,000 jobs, including a hefty 20% cut in senior management, to offset tax hikes and financial pressures. Over at the Competition and Markets Authority, a 10% staff reduction is on the cards following a budget overspend. Across industries, these cuts highlight the mounting strain of higher taxes, union negotiations, and an economy feeling the squeeze.

🐔 Oh Cluck. Saudi Arabia’s chicken game is clucking along at full speed! In the scorching Ad-Dahna Desert, Tanmiah Food Co. is churning out 150,000 chickens a day to feed big names like McDonald’s and Popeyes. With a whopping $4.5 billion invested under Vision 2030, Saudi poultry production is soaring to meet local demand and export goals. But it’s not all smooth sailing—high costs, imported grains, and infrastructure woes are pecking at progress.

📈 Rate rise. The Bank of Japan hiked its key interest rate to 0.5%, the highest in 15 years, as Governor Kazuo Ueda steers the ship toward monetary stability. Markets are bracing for two more rate increases, with hikes predicted in April and July. This marks a major shift for a country that’s long embraced ultra-loose monetary policies.

From the ZipTracker

🏠 Mortgage prison. A group of nearly 400 homeowners is taking on TSB Bank, claiming they are trapped in "mortgage prison" with inflated interest rates. The dispute stems from TSB’s 2015 acquisition of Northern Rock’s mortgage portfolio, where borrowers allege the bank breached contracts by imposing higher rates than its standard variable rate. A judge recently denied their appeal, but the case will proceed to trial on broader issues, including whether TSB acted unreasonably in setting rates. The lender denies the claims, arguing most borrowers have refinanced or settled. Hogan Lovells is advising TSB Bank.

💸 Salary bump. Norton Rose Fulbright has increased trainee solicitor pay in its London office, with first-year trainees now earning £50,000 and second-years £55,000, up from £48,000 and £53,000. Newly qualified lawyers saw salaries rise to £120,000 in April, with potential bonuses pushing earnings to £168,000. Other firms are also boosting pay: Latham & Watkins now offers trainees £60,000 in their first year and £65,000 in their second, while Milbank and Davis Polk pay £65,000 and £70,000,

P.S. We have added a lot more cases and deals on ZipTracker, don't miss them!

Top Story: Apple and Google in trouble

What’s going on?

The UK’s Competition and Markets Authority (CMA) has launched an investigation into Apple and Google’s mobile platforms, probing whether their dominance in the smartphone market warrants extra scrutiny. The focus is on whether the tech giants unfairly favour their own apps and services and how their competition with each other impacts the mobile ecosystem.

This comes right after the UK government ousted the CMA’s chair, raising speculation that Big Tech could now face a lighter regulatory touch. Doug Gurr, former head of Amazon UK, has been appointed as interim CMA chair, but the investigation moves forward, forming part of the UK’s Digital Markets, Competition and Consumers Act. If Apple and Google are designated as having "strategic market status," they could face strict conduct requirements and hefty fines.

Why Should Law Firms Care?

Competition Law: This investigation is a goldmine for competition law specialists. As Apple and Google’s practices are scrutinised, law firms will be called upon to advise their clients, especially smaller developers, on how to challenge unfair practices in the mobile ecosystem. For example, a lawyer might assist a developer who feels disadvantaged by Apple’s app store policies, helping them file a complaint with the CMA or prepare a legal case arguing anti-competitive behaviour, particularly if it impacts market access or pricing.

Regulatory Law: With the introduction of the Digital Markets, Competition and Consumers Act, there will be a surge in work for regulatory lawyers. As the CMA investigates, lawyers will need to help clients — particularly tech companies — navigate the compliance maze around new laws like strategic market status and the conduct rules that come with it. A lawyer might help a client understand how the Act affects their business and advise on steps they need to take to avoid falling foul of the regulations. For instance, advising an app developer on what changes they may need to make in their business practices to avoid scrutiny from regulators if Apple or Google are given strategic market status.

Corporate Law: Corporate lawyers will find themselves busy as the investigation shakes up the competitive landscape. Companies in the tech space may look to acquire competitors or forge new partnerships to strengthen their position amid heightened scrutiny. Lawyers will need to perform thorough due diligence, particularly focusing on how potential acquisitions will stand up to competition regulations. For instance, a corporate lawyer may be tasked with advising a company looking to acquire a smaller developer, ensuring the deal complies with the new regulatory framework and avoids potential anti-competitive concerns.

Term of the Day: Hostile Takeover

A hostile takeover occurs when an organisation seizes control of a company without the approval—and often against the wishes—of its management. This strategy involves buying more than 50% of the company’s voting shares to gain control.

🏆 Quiz: What is a "Hedge Fund"?

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