Regulatory Pressure

Apple’s stock dropped 5% on Thursday, its largest decline since April, due to a delayed Siri update and regulatory scrutiny of Apple News. The AI enhancements for Siri are reportedly postponed, and the FTC is investigating alleged bias on Apple News. These issues overshadowed Apple’s strong earnings, as broader tech sector concerns about AI investment costs and “software uncertainty” weigh on investor sentiment.

Instacart has stopped its AI-driven pricing tests due to consumer scrutiny and regulatory pressure. A recent study revealed these tests led to shoppers paying different prices for the same items. The FTC had also issued a demand regarding Instacart’s pricing practices. The company acknowledged the concerns, stating that the tests “missed the mark” and that they are committed to trust and transparency.