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CNN 10

Apple Accused of Illegally Monopolizing the Smartphone Market in New Lawsuit; Hong Kong Passes Second National Security Law, Widening Crackdown Powers and Aligning City More Closely with Mainland China; 200 Waiters Race in the Streets of Paris, Trays in Hand. Aired 4-4:10a ET

Aired March 26, 2024 - 04:00   ET


COY WIRE, CNN 10 ANCHOR: Hello, and welcome to CNN 10, the best 10 minutes in news. I`m Coy. I`ve got a full show for you today. But first, I`m

curious, how many of you out there have an iPhone?

Did you know that more than 2 billion have been sold since the first iPhone was released? Apple has a solid grip on more than 20% of the worldwide

smartphone market. But just like the good old board game Monopoly, when someone collects a ton of the game pieces, it`s tough to go unnoticed.

And the Department of Justice is definitely taking notice of Apple and its business practices. The DOJ filed a lawsuit last week alongside more than a

dozen states against the tech giant. They`re accusing the company of illegally monopolizing the smartphone market and violating federal

antitrust laws.

CNN`s Brian Todd breaks down this case for us with a look at the iconic brand`s unique strategies which may be weeding out its competitors.


BRIAN TODD, CNN CORRESPONDENT (voice-over): It`s one of the most iconic, powerful brands in the world. Now worth more than $2.5 trillion. It`s sold

more than a billion iPhones worldwide.

And Apple`s ability to maintain that hold on the marketplace has put it squarely in the crosshairs of the U.S. Justice Department. Today, Justice

filing a sweeping antitrust lawsuit against Apple, accusing the tech giant of illegally monopolizing the smartphone market.

MERRICK GARLAND, U.S. ATTORNEY GENERAL: For consumers, that has meant fewer choices, higher prices and fees, lower quality smartphones, apps and

accessories, and less innovation from Apple and its competitors.

TODD (voice-over): At the heart of the antitrust suit, the allegation that Apple has set up its own closed ecosystem that limits Apple users to only

using Apple products. That`s also known as the walled garden. At the center of the walled garden, the iPhone.

TRIPP MICKLE, TECHNOLOGY REPORTER, NEW YORK TIMES: And that`s really, you know, the centerpiece of Apple`s empire. It`s what has made it such a

dominant company for so long.

TODD (voice-over): One example of unfair practices alleged by the Justice Department, that Apple degrades the text that iPhones receive from Android

phones. Those green texts iPhones get from non-iPhones.

BRIAN FUNG, CNN TECHNOLOGY REPORTER: The Justice Department says that messages that are sent between iPhones are more secure because they`re

encrypted. But when you`re messaging with a non-iPhone user, that those messages are not encrypted and thus less secure.

TODD: Also a difference in picture quality. A picture sent from an Android to an iPhone could be of lesser quality.

FUNG: Yeah, according to the Justice Department, when those messages or images get exchanged, the quality is less, you know, images might look

grainier, videos might look grainier.

TODD (voice-over): Another example of what the Justice Department calls Apple`s, quote, "exclusionary conduct". These days, good luck trying to use

anything but Apple Pay if you`re using your phone at the checkout counter.

GARLAND: Apple has blocked third-party developers from creating competing digital wallets on the iPhone. They use what is known as tap-to-pay


TODD (voice-over): And Justice says Apple watches only work well with iPhones, forcing owners to buy nothing but Apple phones. The Justice

Department says unlocking more competition for Apple products will lead to more innovation and lower prices for consumers.

FUNG: On the other hand, Apple says, look, if the Justice Department gets its way, then that effectively makes Apple devices much more like Android

devices, and consumers don`t want that.


WIRE: Our next story takes us to Hong Kong, a unique city with a complex history, which I`ll try to sum up quickly, but I encourage you to take a

look at this history yourself to better understand the situation happening today.

Hong Kong was once controlled by the British Empire, but the city was handed over to China in 1997 under a plan known as One Country, Two

Systems. This idea basically said Hong Kong would join communist China, but maintain its established capitalist economic system and democratic

political system.

But in recent years, that has started to change, and pretty dramatically. In 2020, China`s central government passed a sweeping national security law

following mass pro-democracy protests. That law dramatically broadened the power that China`s communist ruling party had over the territory.

Just last week, Hong Kong`s legislature passed another sweeping law detailing 39 new national security crimes. Our Kristie Lu Stout is here to

break it all down for us.


KRISTIE LU STOUT, CNN CORRESPONDENT: Article 23 is Hong Kong`s controversial new homegrown security legislation. It includes a range of

new national security crimes, including treason, espionage, external interference and disclosure of state secrets.

LU STOUT (voice-over): It carries sentences of 10 years for crimes linked to state secrets and sedition, 20 years for espionage and up to life in

prison for treason, insurrection, sabotage and mutiny.

Officials point out that many Western countries have similar legislation and say it will fill loopholes in the sweeping national security law

imposed by Beijing in 2020 after mass anti-government protests.

JOHN LEE, HONG KONG CHIEF EXECUTIVE: We still have to watch out for potential sabotage, undercurrents that try to create troubles.

LU STOUT (voice-over): In 2020 article 23 was shelved after an attempt to enact it drew half a million residents onto the streets in protest. No such

scenes of opposition are expected this time around.

Beijing`s national security crackdown has transformed Hong Kong. Dozens of political opponents have been arrested, civil society groups disbanded and

outspoken media outlets shut down. Former opposition lawmaker Emily Lau was among the protesters in 2003. She`s no longer marching but has a message

for Beijing.

EMILY LAU, FORMER OPPOSITION LAWMAKER: I just want to tell Beijing there`s no need for such stern treatment. I don`t think Hong Kong will go back to

the turbulent past and I think people want to look forward to a safe and peaceful and free future. We want Hong Kong to prosper. We are part of

China. I`ve never disputed that but we are different from the rest of China but the difference is getting less and less which is very sad.

LU STOUT (voice-over): Critics say the law could have deep ramifications for the city status as a global business hub. The U.S. State Department

says it is concerned by the quote, "Broad and vague definitions of state secrets and external interference that could be used to eliminate dissent

through the fear of arrest and detention."

The Hong Kong government rejects that criticism as biased and misleading with Security Secretary Chris Tang pointing out there is strong public


CHRIS TANG, HONG KONG SECRETARY OF SECURITY (through translation): We received 98.6 percent support and positive feedback.

LU STOUT (voice-over): But on the streets --

UNIDENTIFIED FEMALE (through translated text): I don`t want to answer.

LU STOUT (voice-over): -- it`s hard to tell.

UNIDENTIFIED MALE (through translation): We won`t discuss things, very sensitive.

LU STOUT: Article 23.


WIRE: Pop quiz hotshot. Why is Paris originally known as the City of Light?

Architecture, romance, education, or lantern?

If your answer is lanterns, keep shining bright. In an effort to reduce crime rates back in the 1600s, King Louis XIV ordered nearly 3,000 street

lanterns to be illuminated in the streets of Paris, giving it the title City of Light.

Today`s story getting a 10 out of 10, takes us to the City of Light, Paris, where we`re illuminating an unusual race, where hundreds of Parisian

restaurant waiters dash around corners and over cobblestones, all while holding trays loaded with items that they cannot drop.


UNIDENTIFIED FEMALE: This is no ordinary race. In fact, there`s no running allowed. The 1.2-mile competition across Paris is exclusively for the

city`s waiters, according to Reuters. And there are a few more rules. You must carry a tray holding a croissant, a cup of coffee and a glass of water

for the whole route. Absolutely no water can be spilled, and you can only hold the tray with one hand.

UNIDENTIFIED FEMALE (through translation): I`m not expecting to come first because my cardio isn`t the best, but I`m hoping at least that my tray is

in good condition when I get to the finish line.

UNIDENTIFIED FEMALE: Some 200 waiters took part in the historic race, which was first held in 1914. But this is the first time the event has taken

place since 2011, because of a lack of funding. So what`s the secret to winning?

SAMY LAMROUS, MEN`S WINNER (through translation): It`s stamina.

PAULINE VAN WYMEERSCH, WOMEN`S WINNER (through translation): Yes, stamina, yes. You feel it at the end. But in our line of work, we do this for 10 to

12 hours. We have the stamina. We know how to hold the tray. So there you go.


WIRE: All right, we are running out of time here, but we can`t leave without some special recognition and shout-outs. We are sending a shout-out

to the Bulldogs at Chamblee Middle School in Chamblee, Georgia. Rise up. We see you and we appreciate you.

Also, shout-out to Ralston High School in Omaha, Nebraska. Go Rams!

Remember, tomorrow is #YourWordWednesday. Follow me @coywire on Instagram, Snapchat, TikTok. Put your unique vocabulary word in the comments section

of my most recent post, with the definition, your school, teacher, mascot, if you`d like. And we`re going to choose a winner to work into tomorrow`s


I`m Coy, I`ll see you tomorrow.