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European Union Targets Alphabet, Apple, and Meta in Extensive Investigations

The European Union has set its sights on Alphabet, Apple, and Meta in a series of wide-ranging investigations aimed at ensuring compliance with the region’s new competition law. These investigations, announced on Monday, mark the first major actions taken by regulators since the Digital Markets Act came into effect on March 7. The E.U. is demonstrating its commitment to enforcing strict competition rules that require tech giants to open up their platforms to smaller rivals, granting them better access to users across a variety of services including app stores, messaging platforms, internet search, social media, and online shopping.

The regulatory scrutiny facing the largest tech companies is not unique to the E.U., with global enforcement agencies ramping up investigations in recent weeks. In the United States, the Justice Department filed a lawsuit against Apple for alleged antitrust violations, accusing the company of practices designed to lock customers into their ecosystem and deter them from switching to competitors. Google and Amazon are also facing antitrust lawsuits in the U.S.

The E.U. investigations are specifically targeting Apple and Alphabet, the parent company of Google, for potential unfair practices related to their app stores and search results. Meta, the parent company of Facebook and Instagram, will also be questioned regarding its new ad-free subscription service and data practices for targeted advertising. These investigations have significant implications, as the companies could face fines of up to 10 percent of their global revenue, which amounts to hundreds of billions of dollars annually.

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While Alphabet, Apple, and Meta have made efforts to comply with the Digital Markets Act by implementing changes to their products and services, regulators have deemed these measures inadequate. Margrethe Vestager, the European Commission’s executive vice president, emphasized that compliance with the law is essential and announced that the companies will be required to provide more information about their business practices during the investigations.

The Digital Markets Act, enacted in 2022, grants E.U. regulators more authority to oversee the business practices of tech giants without the lengthy process of traditional antitrust lawsuits. Key provisions of the law aim to prevent companies from favoring their own services over those of competitors, promoting fair competition in the digital economy.

As Alphabet, Apple, and Meta navigate these investigations, they will need to demonstrate greater transparency and cooperation with regulators to address concerns about their practices. The E.U.’s rigorous enforcement of the Digital Markets Act sends a clear message to the tech industry that adherence to competition rules is non-negotiable.

In conclusion, the E.U.’s investigations into Alphabet, Apple, and Meta are a significant development in the ongoing efforts to regulate the tech industry and promote fair competition. These actions underscore the E.U.’s commitment to ensuring a level playing field for all companies operating in the digital economy, and serve as a warning to tech giants that compliance with competition laws is a top priority.

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.