South African consumers may soon pay more for smartphones and laptops due to a global shortage of memory chips. The high demand is largely driven by AI data centres, which require powerful microchips to operate.
Tech experts report that major AI companies are acquiring large quantities of these chips for their own data centres, limiting supply for other industries. At the same time, importing chips from regions such as China has become more difficult because of trade tensions and tariffs.
Industry leaders, including Apple’s Tim Cook and Tesla’s Elon Musk, have expressed concern over the impact on production and business operations. The strain is being felt across the tech sector as companies compete for the limited supply of components.
With no immediate solution, the increased costs are expected to be passed down to consumers. Analysts warn that the combination of high demand, supply constraints, and global trade issues will make technology and appliances more expensive for consumers.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
EU antitrust regulators have postponed their investigation into Amazon’s $1.7 billion acquisition of iRobot, a robot vacuum cleaner maker, due to a lack of information provided by the companies. The European Commission, responsible for overseeing competition in the 27-country bloc, asked Amazon for necessary information to be supplied.
The European Commission has raised concerns that the acquisition could result in reduced competition in the market for robot vacuum cleaners and strengthen Amazon’s already dominant position as an online marketplace provider. This signals the need for a thorough investigation into potential antitrust issues. The investigation delay is a result of Amazon and iRobot’s failure to provide the required information, triggering a merger investigation procedure. Once the missing information is provided, a new deadline will be established for the Commission’s decision.
The European Commission’s warning about diminished competition in the robot vacuum cleaners market suggests that the deal might lead to fewer alternatives for consumers, potentially resulting in higher prices or limited innovation. Moreover, reinforcing Amazon’s market dominance as an online marketplace raises concerns about its impact on other online retailers and the overall competitive landscape.
Overall, the delayed investigation demonstrates the European Commission’s commitment to ensuring fair competition and preventing the concentration of power in the hands of a few dominant players. It underscores the need for companies involved in mergers and acquisitions to comply with regulatory requirements and promptly provide requested information to facilitate a comprehensive review process.
