The EU’s DMA is coming for Apple, and X bots are on the loose | Equity Podcast

This episode is presented by invest Puerto Rico if you believe your business Can go anywhere Puerto Rico is the [Music] Place hello and welcome back to equity Techcrunch's Flagship podcast about the Business of startups today is June 24th 2024 and I'm Rebecca Balon a senior Reporter at TechCrunch this is our Monday show where we take a look at the Weekend and get you ready for the week Ahead on today's show we have Apple's Breach of the EU digital markets act an IPO update X's verified bot problem sir Jackal lot startup for retail Traders And to close out today haa has a pitch Deck tear down for fi Therapeutics let's Get Started let's dive into the big news That matters for our first story of the Day Apple has been named the first of Tech so called Gatekeepers to be charged For violating the eu's digital markets Act rules the European commission Defines Gatekeepers as large digital Platforms that provide core services for Consumers and businesses things like app Stores search engines and web browsers In a press release this morning the Commission announced that it informed Apple of its preliminary view that its App Store rules are in breach of the dma Because they prevent app developers from Freely steering consumers to Alternative

Channels for offers and content the Commission is alleging that Apple's App Store rules don't let Developers give Customers pricing information in the app Or communicate with them about offers Available outside the App Store the Charges come after an investigation that Was open in March into Apple's App Store Rules according to the Wall Street Journal Regulators said they were also Opening probes related to meta and Google's compliance with the law at the Time the dma took effect earlier this Year with the goal of fostering Competition in digital advertising Online search and app ecosystems Penalties for breaching the regime can Scale up to 10% of global annual Turnover or even 20% for severe repeat Offenses that means Apple could be Looking at a fine of up to $38 billion Which is not just a slap on the wrist Back in September the EU confirms six Mostly US tech giants that are subject To the dma Apple was of course one of Them alongside alphabet Amazon bite Dance meta and Microsoft the designated Gatekeepers had 6 months to ensure they Met all the legal requirements and it Appears that Apple has not met them even Back then some of these companies were Pushing back apple and Microsoft fought The commission's designation of iMessage And B as core platform Services claiming

That the services are insufficiently Popular to qualify the startup angle Here is of course competition how do we Ensure a competitive Marketplace and What sort of Market do you want to be Building in as a startup would you Rather be an incumbent who's unkillable Or would you rather build in a market Where the biggest players are less Likely to stifle you but then you may End up hitting a grow [Music] Ceiling next a quick update on the IPO Front we told you last week that Shane's Executive chair was trying to walk back Comments calling Sheen a US company Ahead of its planned London IPO at the Time Beijing had not yet green lit the Company's application to list outside of China well Reuters reported this morning That Sheen the retailer known for its $5 Tops and $10 dresses confidentially Filed papers with Britain's markets Regulator earlier this month for its Potential London listing the listing is Shaping up to be one of the largest IPOs This year globally the company was Valued at $66 billion in a fundraising Last year it's not yet clear when Sheen Plans to launch its and there will still Likely be hurdles for the fast fashioned Retailer to jump so what about the US Well earlier this year Chinese Regulators told Sheen that it wouldn't

Recommend a US IPO due to supply chain Issues so we're not holding our breath To see sheen on the New York Stock Exchange next up X still has a verified Bot problem and this time they came for Tech crunch Riders last week while Scrolling on X formerly Twitter I Noticed that I had reposted a series of Tech crunch articles except wait no I Hadn't but someone else using my name Had I clicked on the profile which had Been created in May 2024 and there was Another Rebecca Balon using the same Default in header photos as my actual Profile which really confused me the bio Said that I was a TechCrunch senior Reporter and journalist which I am the Location was set to New York where I'm Based but weirdly there was a little Blue check mark next to my name meaning That whoever had created this Impersonator account likely a bot had Paid to do so since Elon musk's hostile Takeover of Twitter last year the blue Check mark has really become a symbol That you're either a paid subscriber or An Elon Musk fan and I am neither the Irony here is that musk has claimed that The subscriptions would help solve the Bot problem on the platform and clearly That's not the case I wasn't the only One to be targeted a handful of other Tech crunch writers also noticed fake Accounts last week the activity on those

Accounts has been fairly benign they Mostly just retweeted Tech crunch posts And most have been taken down after Reporting the accounts to X but that Only tells us that X is actually aware Of this problem and the problem is this Attacks like these are so much easier to Carry out because of the degradation of X's verification system which actually Doesn't seem to require any identity Verification at all recall that when Musk first rolled out Twitter blue in November 2023 Bad actors quickly started Pretending to be celebrities Corporations and government officials to Wreak havoc remember that account that Tried to be Pharma company Eli Lily and Posted that insulin is now free what About the one that impersonated LeBron James and posted that he was asking for A trade from the Lakers we've been Tracking Twitter alternatives for a While now like blue sky mastadon and Threads which appears to be in the lead Competitors can learn a lot from X's Mistakes as people become more Disillusioned with X they're going to Want platforms that offer them more Safety and fewer Bots what's next in Tech that's not the Right question it's where Puerto Rico Where an entrepreneurial ecosystem Pulses with connectivity capability and Possibility where the most competitive

Tax incentives in the US FasTrack Success and hard work is rewarded with Sunsets and turquoise Waters if you Believe your business can go anywhere Puerto Rico is the place invest pr.org [Music] TechCrunch and before we head into Today's pitch deck tear down a fun Startup story sir Jack a lot returns With a startup for retail Traders YouTube product manager Kevin J better Known for his Reddit name sir Jack a lot Has launched a startup for retail Investors that aims to create a Community for good-natured investing Advice the startup after hour lets users Link their stock brokerage accounts and Post Investments to their social feed Under a chosen username which could Bring credibility and Trust to retail Investing zuu hopes to build a community For people who used to enjoy platforms Like the Wall Street bet subreddit which Was closed down after the GameStop short Squeeze debacle of January 2021 Becca Scac reports that the startup recently Raised a $4.5 million seed round co-led By General Catalyst and Founders fund The round notably was Keith for booy's Last investment at the firm after hour Currently has more than 23,000 users With what seems like a dedicated and Growing user base J said that more than 70% of its users are on the app every

Single day Becca wrote that after hour Is reminiscent of the crypto space she Writes quote while very different They're both investing in areas that had Their 15 minutes of fame but as they Faded from the mainstream they still Kept dedicated and growing communities Of people interested in their approach Some may think that retail trading was a Fad of 2021 fueled by the co stimulus Checks but the ju says retail trading is Only growing and the data backs it up There are other outlets to guide you Through personal investing one that I Personally follow is girls that invest a Community founded by New Zealander Simron core it provides a howto for People who have no idea how to get Started in investing and empowers Individual investors to be financially [Music] Independent that's it for me this Morning but keep an eye on Tech crunch For even more Tech startup and Venture News as always if you want to dive Deeper into anything we talked about Today we'll have links to the stories we Covered in our show notes now let's Check in with ha comps for today's pitch Deck tear Down all right everyone I'm haa and as Usual on Mondays we're taking a look at What can be learned from a successful Pitch deck this week in my popular pitch

Deck tear down series we're looking at Field Therapeutics $3.5 million seed Deck field Therapeutics is in a mission To update mental health care with a Science forward approach that integrates Wearable devices mobile apps and cl Dashboards by gathering physiological Digital and clinical data the company Aims to bridge the gap in mental health Monitoring a sector often neglected in The age of the Quantified Self the Company shared its Deck with me and Let's start by taking a look at what Worked the company's pitch deck is a Refreshing change in a sea of Snooze Fests they actually managed to make me Think about mental health metrics which Is no small feet at all kudos for Realizing we can track our heartbeats But not our meltdowns and that it's Worth to do something about that the Company's overview slide is a thing of Beauty imagine that a startup that Understands the power of not Overwhelming investors with too much Detail right off the bat it's almost Like they've done this before Bravo for Making complexity look simple you can Learn something here make sure that the Investors looking at your deck have a Solid amount of context context is Everything field Therapeutics traction Slide is like the Holy Grail of investor Slides it has actual numbers and patient

Reach that doesn't look like it were Pulled out of a hat they even made me Google some medical terms which I'll Grudgingly admit is better than the Usual vague hand waving now it wasn't All Perfection and here's a few things That the company could have Improved ah big sigh look everyone has Competition and it was really surprising To me that the company didn't make more Out of its competition there are other People out there that have found ways of Getting quantitative data for mental Health and it makes a lot of sense to Include that when you're talking about a Competitive landscape Next let's talk about the company's ask And use of funds slide H it feels like The company just scribbled down a wish List on a napkin after too many drinks Investors need specifics not a fuzzy Road map to Nowhere smart goals folks Have you ever heard of them now really Explaining what it is that you're trying To accomplish with the money that the Investors give you it's kind of a No-brainer like I don't understand why People don't get this right more often Finally the company's team slide it Looks like a who's who of impressive Titles and job backgrounds but it feels Like all Flash and no substance are These industry Titans actually involved With a company or are they just name

Dropped for vanity investors need more Than a parade of just credentials they Need a team that's in the trenches that Is uniquely suited to run this Particular company if your team slide is Unable to tell that part of the story You either need a better team slide or You need a better team so just to recap Some of the advice here metrics for the Win investors are numbers people so lean Into that and lead with the cold hard Facts remember to have a clear Introduction context is everything and Make sure that you have a little bit of Time spent at the beginning of the pitch To set the scene it pays major dividends So people can follow your story further Down the line and remember traction Traction is everything if you have it Shout it from the rooftops now there's a Few things to keep in mind as well for One thing competition no company exists In a vacuum you have to Explain how and Where you fit in and how you're Different from the existing competitors Remember to really focus on your use of Funds you're asking somebody to crack Open their piggy bank to give you a huge Stash of cash tell them what that buys Them tell them your plans explain why You need the money and finally team Rolls help the investors understand who The founding team is and why they're Worth placing a bet on super important a

Little bit too easy to get wrong all Right you can read the full pitch deck On Tech crunch.com check out the link in The show notes and that's it for today's Episode but don't you worry Equity will Be back on Wednesday if you want to keep Up with us in the meantime you can Follow me on @ higher on X and Equity is On X and threads under the handle Equity Pod if you want to submit your pitch Deck to the pitch deck tear down check Out today's edition in the show notes And follow the submit your deck link Thank you again for listening and we'll Talk again Soon Equity is produced by Teresa Lo Cons solo with editing by Kell Bryce Durban is our illustrator and we'd like To give a big thanks to our audience Development team and Henry pet who Manages Tech crunch audio products Thanks so much for listening and we'll Talk to you next time