Hong Kong Pushes ‘Fake News’ Label as Media Face ‘Worst of Times’

HONG KONG — The glossy pamphlet from the police, delivered to newsrooms in Hong Kong, declared: “Know the Facts: Rumors and Lies Can Never Be Right.” With it was a letter addressed to editors, decrying the “wicked and slanderous attacks” against the police.

The 12-page magazine, distributed Wednesday to news outlets including The New York Times, described the police’s efforts to push back against misinformation. In one instance, the department countered rumors that officers had attended a banquet with gang members, saying the police had held their own private dinner. In another, it accused a local TV station of smearing the police in a parody show.

“Fake news is highly destructive,” read one graphic carrying the hashtag #youarewhatyousend.

Officials in Hong Kong are increasingly seizing on the label of “fake news,” a common authoritarian refrain. The city’s leader, Carrie Lam, said on Wednesday that the government was looking at laws to tackle “misinformation, hatred and lies.” The city’s police chief has said a fake-news law would help fight threats to national security.

The rhetoric is raising fears among activists that the label could be used as a new tool to muzzle dissent.

traditionally unfettered news media, known for coverage that has been critical of the establishment, has been under attack for months. The national security law, which calls for increased regulation of the media, has given the police and local officials powerful tools to constrain the press, but they are seeking more.

Mrs. Lam, the city’s chief executive, has said that the government was exploring legislation to curb fake news, which she said spread online during the protests and the pandemic.

“We have seen the internet, especially social media, flooded with doxxing, hateful and discriminatory remarks and fake news,” she said in remarks to lawmakers in February. Mrs. Lam has said that the proposed legislation had yet to be drafted because the government was still examining how such laws were handled elsewhere.

a 14-month prison sentence for protesting in 2019, and is accused of fraud and colluding with a foreign country.

The police have also bristled at coverage by RTHK, a government-funded public broadcaster with a tradition of independent coverage. The police complained about a parody program that portrayed officers as trash, with an actor portraying an officer in a garbage can.

The government has moved to rein the broadcaster in, replacing its top editor with a civil servant with no journalism experience in February. Under the new leadership the broadcaster has cut two radio programs known for sharp political commentary and added a new show hosted by Mrs. Lam, the city’s leader, discussing an electoral overhaul imposed by Beijing that critics say would cripple the opposition.

The broadcaster was also at the center of a closely watched court case last month in which a former freelance producer for RTHK was convicted of making false statements to obtain public records for a report that was critical of the police. The journalist, Choy Yuk-ling, used the records for a documentary that examined how the police were slow to respond to an attack by a mob on protesters at a train station in 2019.

On Thursday, Ms. Choy’s documentary was honored in Hong Kong with a human rights award. “Chasing the smallest clues, interrogating the powerful without fear or favor,” wrote the judging panel, which called it an “investigative reporting classic.”

The broadcaster has said that it would not accept the award.

Tiffany May contributed reporting.

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New York Times Q1 2021 Earnings

No doubt, President Biden has lowered the temperature of the nation after four years under Donald J. Trump, a tumultuous period capped by the worst pandemic in a century. He may have also lowered interest in the news. For the first quarter, The New York Times Company recorded its smallest gain in new subscribers in a year and a half.

The Times reported a total of 7.8 million subscribers across both print and digital platforms, with 6.9 million coming for online news or its Cooking and Games apps. The company added 301,000 digital customers for the first three months of the year, the lowest increase since the third quarter of 2019.

The Times is still on a path toward its goal of reaching 10 million subscribers by 2025, and it has improved its profit margins as its digital business — which costs less than print — continues to rise.

The company reported adjusted operating profit of $68 million, a 54 percent jump from last year, as it generated more dollars from each subscriber, partly because of the expiration of promotional rates as the new year rolled over. Total revenue rose modestly, about 6.6 percent, to $473 million. Online subscriptions and digital advertising together rose 32 percent, to $239 million, and the print business continued its steady decline.

newly formed union of tech and digital employees. In an email sent to the staff April 22, Ms. Levien effectively declined, saying employees should hold a formal vote. Union representatives replied that they had already voted when a majority of tech employees signed union cards.

The company’s cash pile remains high, at more than $890 million, and its free cash flow — a measure of a company’s financial heft — has risen steadily over the last three years. In 2020, it averaged about $65 million in free cash flow each quarter, according to data compiled by S&P Capital IQ.

The Times has also increased dividend payouts to shareholders every few years. It now pays 7 cents a share each quarter, which costs about $46.8 million a year, payments that benefit the Ochs-Sulzberger family that controls The Times.

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Europe Takes a Tougher Line on Chinese Firms: Live Updates

working out an agreement in December intended to make it easier for European companies to invest in what has become the bloc’s most important trading partner for goods.

But since then relations have gone downhill because of tension over Chinese policy toward minority groups in Xinjiang province.

Legislation proposed by the European Commission Wednesday would give it power to investigate and take measures against foreign companies that use government subsidies to get an unfair advantage over domestic competitors, an accusation often leveled at China. A separate proposal, also announced Wednesday, is intended to make Europe less dependent on China for crucial goods like semiconductors, drugs and batteries.

The proposals came a day after Valdis Dombrovskis, the European commissioner for trade, said that work on finalizing the December investment agreement with Beijing was on hold because of repressive Chinese policies.

In March, the European Commission sanctioned four Communist Party officials after accusing them of being responsible for human rights violations against members of the Muslim Uyghurs and other minority groups in Xinjiang.

China retaliated with sanctions against numerous members of the European Parliament, several scholars, and employees of human rights organizations and think tanks which have been critical of China.

In light of the sanctions war, Mr. Dombrovskis told Agence France-Presse on Tuesday that “it’s clear the environment is not conducive for ratification of the agreement.”

Europe’s tougher line toward China brings it closer to the stance adopted by the Biden administration, which objected to the investment agreement. But Europe remains divided over how to approach an important trading partner that is also a geopolitical rival.

Markus J. Beyrer, director general of BusinessEurope, a leading business lobby, said in a statement Wednesday that the proposal on subsidies is “a step in the right direction in addressing existing legal loopholes and preventing market distortions.”

But a prominent business group in Germany, which is highly dependent on exports to China, was critical.

“The proposed regulation is very complex and there is a risk that its implementation will lead to considerable additional bureaucracy and legal uncertainty for our member companies,” said Ulrich Ackermann, managing director of foreign trade at V.D.M.A., which represents German makers of industrial equipment.

Facebook banned President Donald J. Trump after he used social media accounts to incite a mob of supporters to attack the Capitol on Jan. 6.
Credit…Erin Schaff/The New York Times

A Facebook-appointed panel of journalists, activists and lawyers ruled on Wednesday to uphold the social network’s ban of former President Donald J. Trump, ending any immediate return by Mr. Trump to mainstream social media and renewing a debate about tech power over online speech.

Facebook’s Oversight Board, which acts as a quasi-court to deliberate the company’s content decisions, said the social network was right to bar Mr. Trump after he used the site to foment an insurrection in Washington in January, Mike Isaac reports for The New York Times. The panel said the ongoing risk of violence “justified” the suspension.

But the board also said that Facebook’s penalty of an indefinite suspension was “not appropriate,” and that the company should apply a “defined penalty.” The board gave Facebook six months to determine its final decision on Mr. Trump’s account status.

The board is a panel of about 20 former political leaders, human rights activists and journalists picked by Facebook to deliberate the company’s content decisions, explains Cecilia Kang of The Times. It began a year ago and is based in London.

The idea for the board was for the public to have a way to appeal decisions by Facebook to remove content that violates its policies against harmful and hateful posts. Mark Zuckerberg, Facebook’s C.E.O., has said neither he nor the company wanted to have the final decision on speech.

The company and paid members of the panel stress that the board is independent. But Facebook funds the board with a $130 million trust and top executives played a big role in its formation.

Dogecoin, the cryptocurrency that started as a joke, is on a tear. A surge in the past day pushed it to another record, sending it some 14,000 percent higher than it started the year.

One theory is that the upcoming appearance of Elon Musk, the Tesla chief executive and noted Dogecoin superfan, as the host of “Saturday Night Live” on May 8 could get more people interested in trading the crypto token. It’s as good a reason as any for those who try to rationalize its movements.

The latest bout of Dogecoin mania has somewhat overshadowed what’s going on in Ethereum, the second-largest cryptocurrency, which also set records this week and made its 27-year-old co-creator, Vitalik Buterin, a billionaire (in dollars). The price of Ether, the crypto token built on the Ethereum blockchain, is up more than 350 percent for the year to date, outpacing Bitcoin’s relatively pedestrian 90 percent gain — which, for context, outpaces every stock in the S&P 500 over that period.

President Biden signing a law in March to extend the Paycheck Protection Program through May 31, with Vice President Kamala Harris, left, and Isabel Guzman, the administrator of the Small Business Administration.
Credit…Doug Mills/The New York Times

Four weeks before its scheduled end, the federal government’s signature aid effort for small business ravaged by the pandemic — the Paycheck Protection Program — ran out of funding on Tuesday afternoon and stopped accepting most new applications.

Congress allocated $292 billion to fund the program’s most recent round of loans. Nearly all of that money has now been exhausted, the Small Business Administration, which runs the program, told lenders and their trade groups on Tuesday. (An earlier version of this item misstated that the actions it described occurred Wednesday.)

While many had predicted that the program would run out of funds before its May 31 application deadline, the exact timing came as a surprise to many lenders.

“It is our understanding that lenders are now getting a message through the portal that loans cannot be originated,” the National Association of Government Guaranteed Lenders, a trade group, wrote in an alert to its members Tuesday evening. “The P.P.P. general fund is closed to new applications.”

Some money — around $8 billion — is still available through a set-aside for community financial institutions, which generally focus on lending to businesses run by women, minorities and other underserved communities. Those lenders will be allowed to process applications until that money runs out, according to the trade group’s alert.

Representatives from the Small Business Administration did not immediately respond to a request for comment.

Some money also remains available for lenders to finish processing pending applications, according to a lender who was on a call with S.B.A. officials on Tuesday.

Since its creation last year, the Paycheck Protection Program has disbursed $780 billion in forgivable loans to fund 10.7 million applications, according to the latest government data. Congress renewed the program in December’s relief bill, expanding the pool of eligible applicants and allowing the hardest-hit businesses to return for a second loan.

Lawmakers in March extended the program’s deadline to May, but they have shown little enthusiasm for adding significantly more money to its coffers. With vaccination rates increasing and pandemic restrictions easing, Congress’s focus on large-scale relief effort for small businesses has waned.

The government’s recent efforts have been focused on the most devastated industries. Two new grant programs run by the Small Business Administration — for businesses in the live-events and restaurant industries — began accepting applications in recent weeks, though no grants have yet been awarded.

Tim Sweeney, the head of Epic Games, on Tuesday in Oakland, Calif. He testified in court that he did not know how a verdict against Apple would affect other types of apps.
Credit…Ethan Swope/Getty Images

Last May, Epic Games was making plans to circumvent Apple’s and Google’s app store rules and ultimately sue them in cases that could reshape the entire app economy and have profound ripple effects on antitrust investigations around the world.

Epic’s chief operating officer, Daniel Vogel, sent other executives an email raising a concern: Epic must persuade Apple and Google to give in to its demands for looser rules, he wrote, “without us looking like the baddies.”

Apple and Google, Mr. Vogel warned, “will treat this as an existential threat.” To prepare, Epic formed a public relations and marketing plan to get the public behind its campaign against the tech giants.

Apple seized on that plan in a federal courtroom in Oakland, Calif., on Tuesday, the second day of what is expected to be a three-week trial stemming from Epic’s claims that Apple relies on its control of its App Store to unfairly squeeze money out of other companies.

Judge Yvonne Gonzales Rogers of California’s Northern District, who will decide the case, also asked Epic’s chief executive, Tim Sweeney, a series of pointed questions about its potential consequences. She asked whether he had any understanding of the economics of other types of apps, including food, maps, GPS, weather, dating or instant messaging.

“So you don’t have any idea how what you are asking for would impact any of the developers who engage in those other categories of apps, is that right?” the judge asked.

“I personally do not,” Mr. Sweeney said, in his second day on the witness stand.

Apple’s lawyers argued that Epic had attacked App Store fees to shore up a slowing business. Gross revenue on Fortnite, Epic’s flagship video game, shrank in the last three quarters of 2019 compared with 2018, according to an Epic presentation to its board of directors about its plan to fight Apple. The presentation was disclosed in court on Tuesday, along with the executive’s emails.

Under questioning from Apple’s lawyers, Mr. Sweeney said Epic’s own game store was not expected to turn a profit until at least 2024.

Epic’s lawyers said the lawsuit was not just about Epic and Fortnite but about fairness for all apps that must use Apple’s App Store to reach consumers.

“Our contention in this case is that all apps are at issue,” said Katherine Forrest, a lawyer at Cravath, Swaine & Moore.

Epic is not asking for a payout if it wins the trial; it is seeking relief in the form of changes to App Store rules. Epic has asked Apple to allow app developers to use other methods to collect payments and open their own app stores within their apps.

Apple has countered that these demands would raise a world of new issues, including making iPhones less secure.

On Tuesday afternoon, Benjamin Simon, founder of Yoga Buddhi, which makes the Down Dog Yoga app, testified about his company’s problems with Apple’s policies. Mr. Simon said that he had to charge more for subscriptions on the App Store to make up for the 30 percent fee that Apple charged him, and that Apple’s rules prevented him from promoting inside his app a cheaper price that is available on the web.

Mr. Simon said Apple warned app developers against speaking out about its policies in guidelines for getting their apps approved. “‘If you run to the press and trash us, it never helps,’” he said. “That was in the guidelines.”

The Bill and Melinda Gates Foundation in Seattle. Its $50 billion endowment cannot be removed or divided up as a marital asset, a philanthropy scholar said.
Credit…David Ryder/Getty Images

When Bill and Melinda Gates announced filed for divorce in Washington State on Monday, grant recipients and staff members alike wondered what would happen to the Bill and Melinda Gates Foundation.

The message from the headquarters in Seattle was clear: The Bill and Melinda Gates Foundation isn’t going anywhere.

The foundation’s $50 billion endowment is in a charitable trust that is irrevocable, Nicholas Kulish reports for The New York Times. It cannot be removed or divided up as a marital asset, said Megan Tompkins-Stange, a professor of public policy and scholar of philanthropy at the University of Michigan. She noted, however, that there was no legal mandate that would prevent them from changing course.

“I think there may be changes to come,” she said. “But I don’t see it as a big asteroid landing on the field of philanthropy as some of the hyperbole around this has indicated.”

The foundation, which set a new standard for private philanthropy in the 21st century, has given away nearly $55 billion, giving the couple instant access to heads of state and leaders of industry.

The couple’s prominence has also brought a fair share of scrutiny, throwing a spotlight on Mr. Gates’s robust defense of intellectual property rights — in this case, specific to vaccine patents — even in a time of extreme crisis, as well as the larger question of how unelected wealthy individuals can play such an outsize part on the global stage.

“In a civil society that is democratic, one couple’s personal choices shouldn’t lead university research centers, service providers and nonprofits to really question whether they’ll be able to continue,” said Maribel Morey, founding executive director of the Miami Institute for the Social Sciences.

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The first day of the Epic Games v. Apple trial was a tour of the Fortnite ‘metaverse.’

The chief executive of Epic Games offered a granular explanation of the popular game Fortnite to paint an expansive portrait of his company’s world on the first day of what is expected to be a three-week trial, pitting Epic against Apple in a fight over Apple’s App Store fees and other rules that could reshape the $100 billion app economy.

Fortnite, Tim Sweeney said, “is a phenomenon that transcends gaming,” Erin Griffith reports for The New York Times.

“Our aim of Fortnite is to build something like a metaverse from science fiction,” he said.

Metaverse? A court reporter needed clarification. It’s a virtual world for socializing and entertainment, Mr. Sweeney said.

In a mostly empty courtroom in Oakland, Katherine Forrest of the law firm Cravath, Swaine & Moore opened Epic’s case by previewing a series of emails between Apple’s top executives. The emails were evidence, Ms. Forrest argued, that the tech giant purposely created a “walled garden” that locks consumers and developers inside. That forces them to use Apple’s payment system, she said.

Once Apple lured users and developers into its walled garden, “the garden gate was closed, the lock turned,” Ms. Forrest said. She compared Apple’s fees on in-app purchases for subscription services to a car dealership that takes a commission on gas sales.

Apple’s lawyers described, in their opening statement, a thriving market for app distribution that includes gaming consoles, desktop computer gaming and the mobile web. Karen Dunn of Paul, Weiss argued that the 30 percent commission was in line with industry standards and that Epic’s requests, if granted, would make iPhones less secure, while unlawfully forcing Apple to do business with a competitor.

Ms. Dunn added that Epic’s case was a self-serving way to avoid paying fees it owed Apple and was on shaky legal footing.

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Judge presses Epic on the impact of its antitrust suit against Apple.

Last May, Epic Games was making plans to circumvent Apple’s and Google’s app store rules and ultimately sue them in cases that could reshape the entire app economy and have profound ripple effects on antitrust investigations around the world.

Epic’s chief operating officer, Daniel Vogel, sent other executives an email raising a concern: Epic must persuade Apple and Google to give in to its demands for looser rules, he wrote, “without us looking like the baddies.”

Apple and Google, Mr. Vogel warned, “will treat this as an existential threat.” To prepare, Epic formed a public relations and marketing plan to get the public behind its campaign against the tech giants.

Apple seized on that plan in a federal courtroom in Oakland, Calif., on Tuesday, the second day of what is expected to be a three-week trial stemming from Epic’s claims that Apple relies on its control of its App Store to unfairly squeeze money out of other companies.

must use Apple’s App Store to reach consumers.

“Our contention in this case is that all apps are at issue,” said Katherine Forrest, a lawyer at Cravath, Swaine & Moore.

Epic is not asking for a payout if it wins the trial; it is seeking relief in the form of changes to App Store rules. Epic has asked Apple to allow app developers to use other methods to collect payments and open their own app stores within their apps.

Apple has countered that these demands would raise a world of new issues, including making iPhones less secure.

On Tuesday afternoon, Benjamin Simon, founder of Yoga Buddhi, which makes the Down Dog Yoga app, testified about his company’s problems with Apple’s policies. Mr. Simon said that he had to charge more for subscriptions on the App Store to make up for the 30 percent fee that Apple charged him, and that Apple’s rules prevented him from promoting inside his app a cheaper price that is available on the web.

Mr. Simon said Apple warned app developers against speaking out about its policies in guidelines for getting their apps approved. “‘If you run to the press and trash us, it never helps,’” he said. “That was in the guidelines.”

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Goldman Sachs Will Ask Most Workers to Return in June: Live Updates

JPMorgan Chase, the nation’s biggest bank, plans to open all its U.S. offices on May 17 for employees who wish to return voluntarily. That will be followed by a compulsory return in July, when workers will rotate in and out of the office in accordance with safety measures that will limit each office’s capacity. Bank of America has not yet announced to employees when a fuller return to the office is expected.

Twitter has begun to add paid subscriptions, and announced plans to introduce other subscriber features in the future.
Credit…Laura Morton for The New York Times

Twitter plans to acquire the subscription service Scroll, the social media company announced on Tuesday, as it expands its plans for subscription offerings. The two companies declined to disclose the deal terms.

Scroll charges its users a fee to block advertising on participating news websites, then distributes a cut of its earnings to its partner publishers, which include USA Today, Vox and The Atlantic. Publishers can earn up to 50 percent more from the service than they do from advertising, Scroll contends. Twitter plans to integrate the service into its platform, and use its technology to build other subscription services.

“People come to Twitter every day to discover and read about what’s happening,” Mike Park, Twitter’s vice president for product, said in a blog post announcing the deal. “If Twitter is where so much of this conversation lives, it should be easier and simpler to read the content that drives it.”

In recent months, Twitter has begun to add paid subscriptions, and announced plans to introduce other subscriber features in the future.

In January, Twitter acquired Revue, a newsletter provider, and said it would take a 5 percent cut of subscription revenue. In February, the company revealed plans to introduce “Super Follows,” a feature that would allow Twitter users to place some of their content behind a pay wall. And this week, Twitter said it planned to add a ticketing feature to its audio chat, Spaces, so that hosts can charge listeners for entry into their discussions.

Twitter plans to supplement its advertising revenue with revenue from subscriptions, and has raced to add content like newsletters and audio chats that it thinks audiences will pay for. Its acquisition of Scroll will add journalism to that list.

“For every other platform, journalism is dispensable. If journalism were to disappear tomorrow their business would carry on much as before,” Tony Haile, Scroll’s chief executive, wrote in a blog post. “Twitter is the only large platform whose success is deeply intertwined with a sustainable journalism ecosystem.”

Tim Sweeney, the chief executive of Epic Games, said that the company wanted to build “a phenomenon that transcends gaming.”
Credit…Jim Wilson/The New York Times

The chief executive of Epic Games offered a granular explanation of the popular game Fortnite to paint an expansive portrait of his company’s world on the first day of what is expected to be a three-week trial, pitting Epic against Apple in a fight over Apple’s App Store fees and other rules that could reshape the $100 billion app economy.

Fortnite, Tim Sweeney said, “is a phenomenon that transcends gaming,” Erin Griffith reports for The New York Times.

“Our aim of Fortnite is to build something like a metaverse from science fiction,” he said.

Metaverse? A court reporter needed clarification. It’s a virtual world for socializing and entertainment, Mr. Sweeney said.

In a mostly empty courtroom in Oakland, Katherine Forrest of the law firm Cravath, Swaine & Moore opened Epic’s case by previewing a series of emails between Apple’s top executives. The emails were evidence, Ms. Forrest argued, that the tech giant purposely created a “walled garden” that locks consumers and developers inside. That forces them to use Apple’s payment system, she said.

Once Apple lured users and developers into its walled garden, “the garden gate was closed, the lock turned,” Ms. Forrest said. She compared Apple’s fees on in-app purchases for subscription services to a car dealership that takes a commission on gas sales.

Apple’s lawyers described, in their opening statement, a thriving market for app distribution that includes gaming consoles, desktop computer gaming and the mobile web. Karen Dunn of Paul, Weiss argued that the 30 percent commission was in line with industry standards and that Epic’s requests, if granted, would make iPhones less secure, while unlawfully forcing Apple to do business with a competitor.

Ms. Dunn added that Epic’s case was a self-serving way to avoid paying fees it owed Apple and was on shaky legal footing.

Pfizer’s vaccine is disproportionately reaching the world’s rich.
Credit…Dado Ruvic/Reuters

On Tuesday, Pfizer announced that its Covid vaccine brought in $3.5 billion in revenue in the first three months of this year, nearly a quarter of its total revenue. The vaccine was, far and away, Pfizer’s biggest source of revenue, report Rebecca Robbins and Peter S. Goodman of The New York Times.

The company did not disclose the profits it derived from the vaccine, but it reiterated its previous prediction that its profit margins on the vaccine would be in the high 20 percent range. That would translate into roughly $900 million in pretax vaccine profits in the first quarter.

Pfizer has been widely credited with developing an unproven technology that has saved an untold number of lives.

But the company’s vaccine is disproportionately reaching the world’s rich — an outcome, so far at least, at odds with its chief executive’s pledge to ensure that poorer countries “have the same access as the rest of the world” to a vaccine that is highly effective at preventing Covid-19.

As of mid-April, wealthy countries had secured more than 87 percent of the more than 700 million doses of Covid-19 vaccines dispensed worldwide, while poor countries had received only 0.2 percent, according to the World Health Organization. In wealthy countries, roughly one in four people has received a vaccine. In poor countries, the figure is one in 500.

Throughout the pandemic, Eleven Madison Park has been preparing food boxes for needy families. The new plant-based iteration of the restaurant will help sustain efforts like those, said its chef, Daniel Humm.
Credit…Lucas Jackson/Reuters

Eleven Madison Park, the Manhattan restaurant that has been called the best in the world, will serve an all-plant-based menu when it reopens after more than a year of being closed because of the pandemic.

Eleven Madison Park’s multicourse menu will keep its prepandemic price of $335, including tip, Brett Anderson and Jenny Gross report for The New York Times.

Daniel Humm, Eleven Madison Park’s chef, said the decision is the result of a yearslong re-evaluation about where his career was headed, which reached its breaking point during the pandemic.

“It became very clear to me that our idea of what luxury is had to change,” Mr. Humm said. “We couldn’t go back to doing what we did before.”

While the restaurant’s ingredient costs will go down, labor costs will go up as Mr. Humm and his chefs work to make vegan food live up to Eleven Madison Park’s reputation. “It’s a labor intensive and time consuming process,” he said.

It marks a striking departure for one of the most lavishly praised American restaurants of the past 20 years. Though Mr. Humm still offers plenty of red meat at his London restaurant, Davies and Brook at Claridge’s hotel, the move at Eleven Madison Park — which has four stars from The New York Times and three from Michelin — suggests how different fine dining may look as restaurants reopen and reimagine themselves.

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Apple and Epic Trial Opens With a Tour of the Fortnite ‘Metaverse’

OAKLAND, Calif. — Cosmetics. Digital dances called “emotes” A currency called V-Bucks. Virtual concerts. Fortnite, the popular gaming platform, is more than just a game. It is a “metaverse,” full of virtual life, said Tim Sweeney, chief executive of Epic Games, the company that created Fortnite.

And Apple, he argued in federal court on Monday, wants an unfair cut of the money to be made in the Fortnite metaverse.

Mr. Sweeney offered a granular explanation of Fortnite to paint an expansive portrait of his company’s world on the first day of what is expected to be a three-week trial, pitting Epic against Apple in a fight over Apple’s App Store fees and other rules that could reshape the $100 billion app economy.

Epic sued Apple in August, arguing that Apple is unfairly leaning on its control of the App Store to extract an unfair cut of the money Epic makes from selling digital goods inside Fortnite.

antitrust claims by state and federal governments in the United States and Europe. Apple is also battling two potential class-action lawsuits from consumers and developers over its App Store fees.

Fortnite, Mr. Sweeney said, “is a phenomenon that transcends gaming,” he said. “Our aim of Fortnite is to build something like a metaverse from science fiction.”

Metaverse? A court reporter needed clarification. It’s a virtual world for socializing and entertainment, Mr. Sweeney said.

The legal arguments in the case center on the boundaries of the market the two companies are fighting over. Apple’s lawyers focused their opening statements on gaming, arguing that people can get access to Fortnite in many places other than the App Store, like gaming consoles.

an interview last year, is “completely unprecedented in human history.”

But Mr. Sweeney was so soft-spoken in his testimony on Monday, a court reporter had to repeatedly ask for clarification on gaming and technology terms. He wore a suit, ditching his usual, T-shirt and cargo shorts. He also wore a clear face shield.

In his testimony, Mr. Sweeney explained Epic’s decision to pursue the lawsuit. “I wanted to show the world through actions exactly what the ramifications of Apple’s policy were,” he said.

In a cross-examination, Richard Doren of Gibson, Dunn & Crutcher hammered at Mr. Sweeney with a rapid series of yes-or-no questions to make the point that Epic also publishes Fortnite on other platforms, like gaming consoles — and that Epic is not complaining about them.

But Mr. Sweeney countered that the gaming consoles, which typically lose money on the hardware they sell and make it up on fees, have different business models from Apple’s and Google’s app stores, which are highly profitable.

Mr. Doren asked Mr. Sweeney if he knew that the actions Epic took last summer would cause Apple to kick his company’s app out of the App Store. He suggested that Mr. Sweeney had hoped Apple would cave in to the pressure because of Fortnite’s popularity.

“I hoped Apple would seriously reconsider its policy then and there,” Mr. Sweeney said. Apple did not, and Epic sued.

In the coming weeks, top Apple executives, including the chief executive, Tim Cook, and executives from Microsoft and Match Group are expected to testify.

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Apple and Epic Games head to court over app revenue.

Apple and Epic Games, maker of the wildly popular game Fortnite, are set to square off on Monday in a trial that could decide how much control Apple can exert over the app economy. The trial is scheduled to open with testimony from Tim Sweeney, the chief of Epic, on why he believes Apple is a monopoly abusing its power.

The trial, which is expected to last about three weeks, carries major implications, Jack Nicas and Erin Griffith report in The New York Times. If Epic wins, it will upend the economics of the $100 billion app market and create a path for millions of companies and developers to avoid sending up to 30 percent of their app sales to Apple.

An Epic victory would also invigorate the antitrust fight against Apple. Federal and state regulators are scrutinizing Apple’s control over the App Store, and on Friday, the European Union charged Apple with violating antitrust laws over its app rules and fees. Apple faces two other federal lawsuits about its App Store fees — one from developers and one from iPhone owners — that are seeking class-action status.

Beating Apple would also bode well for Epic’s coming trial against Google over the same issues on the app store for Android devices. That case is expected to go to trial this year and would be decided by the same federal judge, Yvonne Gonzalez Rogers of the Northern District of California.

If Apple wins, however, it will strengthen its grip over mobile apps and stifle its growing chorus of critics, further empowering a company that is already the world’s most valuable and topped $200 billion in sales over just the past six months.

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Verizon Says It Will Sell Yahoo and AOL to Apollo: Live Updates

sell Yahoo and AOL to the private equity firm Apollo Global Management for $5 billion.

The sale includes Verizon’s advertising technology business as well, and the company will retain a 10 percent stake in the business, Verizon said in a statement announcing the deal on Monday.

The transaction is the latest turn in the history of two of the internet’s earliest pioneers. Yahoo used to be the front page of the internet, cataloging the furious pace of new websites that sprang up in the late 1990s. AOL was once the service that most people used to get online.

But both were ultimately supplanted by nimbler start-ups, like Google and Facebook, though Yahoo and AOL still publish highly trafficked websites like Yahoo Sports and TechCrunch.

The sale signals the unraveling of a strategy Verizon heralded in 2015 when it acquired the faded internet giant AOL for $4.4 billion. The purchase was meant to give Verizon a pathway into mobile, with the goal of using AOL’s advertising technology to sell ads against digital content. Verizon doubled down on that strategy in 2017 with its $4.48 billion acquisition of Yahoo, which it combined with AOL under the umbrella Oath.

But Google and Facebook have proved to be formidable competitors in the digital advertising market. Verizon acknowledged their might in 2018 when it wrote down the value of Oath by $4.6 billion, attributing the move in part to “increased competitive and market pressures” that had resulted in “lower-than-expected revenues and earnings.”

Still, the media business generates plenty of revenue. It recorded $1.9 billion in sales in the first quarter, a 10 percent gain over last year.

A worker at MTA, a maker of electronic components, in Codogno, Italy. Eurozone manufacturers have been reporting new orders.
Credit…Flavio Lo Scalzo/Reuters

Apple and Epic Games, maker of the wildly popular game Fortnite, are set to square off on Monday in a trial that could decide how much control Apple can exert over the app economy. The trial is scheduled to open with testimony from Tim Sweeney, the chief of Epic, on why he believes Apple is a monopoly abusing its power.

The trial, which is expected to last about three weeks, carries major implications, Jack Nicas and Erin Griffith report in The New York Times. If Epic wins, it will upend the economics of the $100 billion app market and create a path for millions of companies and developers to avoid sending up to 30 percent of their app sales to Apple.

An Epic victory would also invigorate the antitrust fight against Apple. Federal and state regulators are scrutinizing Apple’s control over the App Store, and on Friday, the European Union charged Apple with violating antitrust laws over its app rules and fees. Apple faces two other federal lawsuits about its App Store fees — one from developers and one from iPhone owners — that are seeking class-action status.

Beating Apple would also bode well for Epic’s coming trial against Google over the same issues on the app store for Android devices. That case is expected to go to trial this year and would be decided by the same federal judge, Yvonne Gonzalez Rogers of the Northern District of California.

If Apple wins, however, it will strengthen its grip over mobile apps and stifle its growing chorus of critics, further empowering a company that is already the world’s most valuable and topped $200 billion in sales over just the past six months.

As the post-pandemic economic recovery ramps up, prices are going up on goods as varied as toilet paper, diapers and wood flooring — and the increases may soon be felt in consumers’ wallets.

Procter & Gamble is raising prices on items like Pampers and Tampax in September. Kimberly-Clark said in March that it would raise prices on Scott toilet paper, Huggies and Pull-Ups in June, a move that is “necessary to help offset significant commodity cost inflation.”

And General Mills, which makes cereal brands including Cheerios, is facing increased supply-chain and freight costs “in this higher-demand environment,” the company’s chief financial officer, Kofi Bruce, said recently.

These price increases reflect what some economists are calling a major shift in the way companies have responded to demand during the pandemic, Gillian Friedman reports in The New York Times.

Before the virus hit, retailers often absorbed the cost when suppliers raised prices on goods, because stiff competition forced retailers to keep prices stable. The pandemic changed that.

The people who profit off corporate America’s use of offices are trying to coax corporate America back to the office.

They have refined their sales pitches to play up air filtration systems, flexible lease terms and swing space and brokers are back in their own workplaces in force. They are acknowledging that some things have changed while also seeking to prove to their clients, and themselves, that the office will soon return to something close to what it was, Rebecca R. Ruiz reports in The New York Times.

With New York City set to reopen fully in July, and many companies expecting to summon workers back this summer and fall, those in commercial real estate are hoping that the rebirth they’ve tried to hasten may finally happen.

“We opened our offices as soon as we were allowed across the country,” said David Lipson, a vice chairman for Savills, a global brokerage firm. “If you’re in the office real-estate business, should you be comfortable getting too comfortable working from home?”

The industry, coming off a boom of continuous growth, has seen commissions fall off as vacancy rates have climbed to their highest levels in decades. Real estate executives, characteristically bullish on their prospects, are facing existential questions.

With 1.3 billion square feet of office space available across America’s top markets — and more now on the market in Manhattan than exists in all of Nashville, Orlando or San Antonio, according to the research firm CoStar — strains in rosy projections are showing.

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