Apple Helps Kill Based Act and Shares Slip 1.5% on OpenAI Chip Report
Apple and Google led a California Chamber of Commerce–backed lobbying blitz that killed the Based Act, a measure introduced March 18 to bar App Store platform favoritism, within a month. Apple shares then fell 1.5% in New York after reports that OpenAI is partnering with Qualcomm and MediaTek on smartphone processors.
1. Based Act Defeated by Tech Lobbying
Senator Scott Wiener introduced the Based Act on March 18 to prohibit major platforms from favoring their own apps over competitors in digital marketplaces like the App Store. Within a month, Apple, Google and allied groups such as the California Chamber of Commerce and the Chamber of Progress deployed a coordinated lobbying effort, flooding Sacramento with advocates and messaging that led legislators to drop the measure before committee votes could occur.
2. Share Reaction to OpenAI Chip Ambitions
Following industry reports that OpenAI is working with Qualcomm and MediaTek to design custom smartphone processors paired with AI subscription services, Apple stock dipped 1.5% in early New York trading. The move underscores investor concern that new entrants building mobile AI hardware could challenge Apple’s chip leadership and revenue mix from device sales.