The business world has witnessed a range of significant developments over the past week. From legal battles involving major tech firms to changes in the executive ranks of a prominent philanthropic foundation, these events have the potential to shape the future of various sectors. Let’s take a look at the top business news of the last week, providing a detailed look at each story.
ByteDance’s Legal Challenge Against New US Law
China-based ByteDance Ltd., the owner of the popular video-sharing app TikTok, has taken significant legal action in response to a US law that could force the company to sell TikTok or face a ban.
ByteDance has requested an appeals court to expedite its lawsuit, arguing that quick consideration is necessary to prevent irreparable harm. The request was filed in the District of Columbia federal appeals court, with ByteDance being supported by eight TikTok creators who also sued to block the law.
President Joe Biden signed this measure into law in April, citing national security concerns about the Chinese government potentially accessing user data and influencing US citizens through the platform. The legal battle pits free-speech rights against national security interests and is expected to be lengthy, possibly reaching the US Supreme Court. If the DC Circuit expedites the case and the Supreme Court decides to hear it, a decision could be reached by the second quarter of 2025, according to Matthew Schettenhelm, an analyst for Bloomberg Intelligence.
Seizure of Deutsche Bank and UniCredit’s Assets in Russia
A Russian court has ordered the seizure of assets belonging to Deutsche Bank and UniCredit in Russia. This decision comes as part of the broader exit of European banks from Russia following Moscow’s offensive on Kyiv in 2022. The court in Saint Petersburg ruled in favor of seizing 239 million euros from Deutsche Bank and around 463 million euros worth of assets from Italy’s UniCredit.
These rulings were made in response to a request from RusKhimAlians, a company that was planning to build a significant gas processing and liquefaction plant in collaboration with the German firm Linde. However, Linde withdrew from the project due to Russia’s military actions. RusKhimAlians subsequently sued UniCredit and Deutsche Bank, both of which were guarantors of the project.
Netflix’s Ad-Supported Tier Success
Netflix has reported significant growth in its ad-supported tier, which has reached 40 million global monthly active users, up from 5 million a year earlier. This impressive increase indicates that Netflix’s strategy to attract new users with a cheaper, ad-supported plan is yielding positive results.
The rise in subscribers comes amid intense competition in the streaming industry, with companies introducing various bundles and promotional offers to retain subscribers. Netflix launched its ad-supported plan in November 2022, and it has quickly gained traction, with 40% of all new sign-ups in the available countries opting for this plan. For the first time, the majority of gross subscriber additions for the streaming industry in the fourth quarter came from ad-supported plans, according to research firm Antenna.
Melinda French Gates to Step Down from Gates Foundation
Melinda French Gates has announced her decision to step down as co-chair of the Bill & Melinda Gates Foundation. Her departure will be effective June 7. As part of her agreement with Bill Gates, Melinda will leave the foundation with an additional $12.5 billion for her own philanthropic endeavors. She has indicated that she will share more details about her future plans soon.
Following her departure, the foundation will be renamed the Gates Foundation to honor the legacy of Bill Gates Sr. and acknowledge Melinda’s contributions. Bill Gates will become the sole Chair of the foundation. CEO Mark Suzman emphasized that Melinda will not be taking any of the foundation’s work with her when she leaves.
Slower Global Oil Demand Growth Forecast
The International Energy Agency (IEA) has revised its forecast for global oil demand growth in 2024, predicting a slower increase than previously anticipated. The IEA now expects demand to rise by 1.1 million barrels per day (bpd), which is 140,000 bpd fewer than its earlier forecast. This adjustment follows a first-quarter drop in demand in developed economies due to a mild winter and a declining diesel car fleet.
The IEA’s report highlighted that demand in OECD countries contracted by 70,000 bpd in the first three months of the year. The mild winter reduced the need for heating fuel, and structural factors such as increasing vehicle efficiencies and a declining share of diesel-powered cars also played a role. These trends were particularly evident in Europe, but weaker-than-expected diesel demand was observed in other key markets as well.
