The Legal Brief - 11th May 2022

Earlier in the week, the European Commission accused tech giant Apple of abusing its strong standing position in the tech market to break the law regarding contactless payments on smartphones.?

Concerns were raised by the Commission following a discovery suggesting that the company may have infringed on competition law through its preventing of allowing its competitors to access the contactless aspect of their tech. Whilst Apple have denied all charges, it has promised to cooperate with the European Commission who recently released a statement from Vice-President, Margrethe Vestager, stating that they have ‘indication that apple restricted third-party access to key technology, necessary to develop rival mobile wallet solutions on Apple’s devices.’ Should they be found guilty of such claims, the company could be fined a massive 10% of its global turnover; based upon the companies total revenue last year, this would consist of around ￡29.2 billion.

As according to the European Commission, such acts of Apple have an ‘exclusionary effect’ on its competitors, leading to ‘less innovation and less choice for consumers for mobile wallets on iPhones.’ In response to this, the company stated that they have ‘ensured equal access’ to the technology in discussion whilst also ‘setting industry-leading standards’ for the privacy and security of consumers.?

Whilst it isn’t uncommon to hear about tech giants facing backlash of some kind, this is not the first time Apple have been accused of such anti-competitive practices. Back in 2015 Apple faced similar claims regarding its Apple Pay feature, where once again the European Commission found Apple to have ‘restricted competition to the benefit od its own solution Apple Pay.’ Undeniably, following the various charges they have faced over the years concerning matters from distorting competition in music streaming and intentionally slowing down its older devices, it is not particularly surprising that the company is facing yet another charge.?

Written by Hebe Shepherd

May of you will have seen the news last Friday that convenience store, McColls, had gone into administration.

News over the weekend was that the owners of Asda were lining up to save the failed retailer, but this thrown up in air somewhat on Monday, with Morrisons announcing an intention to bid also. Following a third bid from EG Group (who mainly operate garages and Fast Food outlets), administrators PwC took final offers for consideration on Monday.

News broke yesterday that Morrisons was the preferred bidder of the three, and the retail giant now looks set to begin their plans for saving McColls. This move seems to make sense, as there was an existing relationship between the two brands- Morrisons already supplied good to McColls under the 'Safeway' brand.

The news that a buyer has been found so soon will come as a huge relief to Mc Colls Staff, with all 16,000 staff of them being assured of their jobs being transferred to Morrisons. All stores will continue trading and Morrisons has also pledged to rescue McColls' two pension schemes.

This all sounds like good news, particularly for anyone involved in McColls before Friday's news. It will be interesting to see what longer term plans Morrisons has for the convenience store, and its locations. It will also be important to watch the financial side of this deal unfold, as Morrisons has taken on a lot of risk at a very key time in the financial cycle, which is normally against the MO of a Supermarket chain.

Written by Duncan Balcon

Is this the end of SPACs?

That view is possibly a little drastic, but it was an opinion displayed by a few media outlets yesterday, following the news that investment bank, Goldman Sachs, has stopped doing business on new SPAC offerings for the time being.

Considering that Goldman was last year ranked as the second-biggest underwriter for SPACs, helping sponsors raise $16bn, this has come as a bit of a shock to investors and other financiers, but at the same time makes a lot of sense.

The SEC announced plans in March to change the rules regarding SPACs, reforming them and bringing them more in line with the transparency and regulated structure of a traditional IPO. This would make life particularly tricky for investment banks, as this increased level of expected transparency doesn't sit comfortably alongside the way SPACs operate. Often investors do not know exactly what company their money is being used towards, but trust the SPAC manager to make a good investment. Increasing the rules around SPACs could potentially increase an investment banks liability for misstatements, particularly in relation to any subsequent mergers performed by the SPAC.

This increased level of scrutiny was always expected, particularly with the varying fortunes of companies brought to market via the SPAC route over the last few years. It will definitely come as a slightly painful blow for banks, like Goldman Sachs, though as they typically take around 5% of a SPACs proceeds in fees. With this level of income being compromised, it is clear that the risk of continuing to operate SPACs is too high for them to bear. Definitely another serious blow for SPACs, but will it be fatal?

Written by Duncan Balcon

What’s your definition of an elite mindset? ?? ??

Mindset is one of the most important yet overlooked aspects of performance!

If you are not intentionally training your mind, your mindset will become a result of what others feed you.

Training your mind to go from average to elite involves a plan and sticking to it.

Troy Atkin ? MSc LPC LLB (Hons)?defines an elite mindset on our latest?Legally Speaking Podcast ???as follows…

“When everyone stops you continue!”

Troy says it’s as simple as that for him.

He applies this mindset to everything in his life.

Outside of legal work Troy is a national level powerlifter ranked 3rd in the UK in bench press and has a chance to represent Great Britain on the International stage! ???♀???

This led me to share this famous quote when it comes to not giving up…

“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”—Martin Luther King, Jr.

How do you define an elite mindset?

Aviation Finance?- Global Law Firm - Junior Associate (London)

Capital Markets Associate?- Global Law Firm - 2 - 4??PQE (London)

Commercial IT Associate/Senior Associate?- Global Law Firm (London)

Commercial Litigation Associate x 2 (Trade/Commodities)?- Global Law Firm (London)

Corporate Associate & Senior Associate x 2?- Global Law Firm (London)

Disputes Associate?- Global Law Firm - 4 - 5?PQE (London)

Finance Associate?- Global Law Firm 3 - 4?PQE (London)

Financial Regulatory Associate?- Global Law Firm 3 - 5?PQE (London)

M&A Associate?- Global Law Firm 2 - 4 PQE (London)

Marine Asset Finance?- Global Law Firm NQ – 3 years?PQE (London)

Marine Assets & Projects?(EMNR Group A)?- Global Law Firm

Professional & Finance Disputes Associate/Senior Associate?- Global Law Firm 2+ PQE (London)

Professional Indemnity Junior Associate/ Associate?- Global Law Firm (London)

Real Estate Disputes Associate?- Global Law Firm (London)

For further information, or to get your questions answered, please send a message to?Robert Hanna.

If you cannot see a job suitable for you, but are interested to hear about more jobs at KC Partners, please send your CV to?[email protected]?to be considered.

At KC Partners we are committed to promoting diversity and equality of opportunities across organisations and we welcome applications from suitable candidates regardless of race or racial group, religion or belief, age, disability, sexual orientation, sex, gender re-assignment and gender identity, marriage and civil partnership, and pregnancy, maternity and paternity.

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