Your commercial news round-up: Revolut, Apple, shop prices, wind projects

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Ready for a whirlwind of this week’s commercial news? Revolut is facing potential legal action from Republic Europe over a blocked share sale, while consumer organisation Which? has launched a £3 billion legal claim against Apple regarding its iCloud service. Meanwhile, JD Sports’ chair has warned of price hikes due to new tax rises and German energy firm RWE is cutting its offshore wind investment following Donald Trump’s re-election. Read on to uncover all the details!

• Revolut is facing potential legal action from crowdfunding platform Republic Europe over the sale of its shares by early investors. The dispute arose when Jamba Europe, in effect owned by New York-based HOF Capital, had attempted to purchase 10,047.8 Revolut shares for approximately £4.5 million at a significant discount. Republic has since alleged that Revolut then blocked the sale by arranging for a group of shareholders to accept a change in its articles of association (ie, rules that govern how a company is run), according to CITY AM. In a letter to users,  Republic said: “Having taken legal advice, we believe that both the process and substance of the change were contrary to applicable law and are invalid.” The crowdfunding platform added: “We very much hope to be able to reach an amicable solution that allows this transaction to proceed, but we have reserved our rights and will take appropriate action once we have a response from [Revolut].”
   
• Consumer group Which? has launched a legal claim against Apple, accusing the tech giant of trapping and overcharging 40 million British customers through its iCloud service. If successful, the legal action could result in a £3 billion payout, with the average customer receiving around £70. Apple has rejected the allegations, stating that users aren’t required to use iCloud and can rely on third-party alternatives. The case against Apple is part of a growing trend of large class actions against big tech companies, including Facebook, Google, gaming giant Steam and leading UK mobile providers. A partner from the law firm Humphries Kerstetter LLP, Toby Starr, said that these cases will “start to affect the tech giants’ businesses” as more decisions and settlements are reached in the coming years.
   
• Chair of JD Sports and the British Retail Consortium, Andy Higginson, has warned that prices in shops and pubs will increase as a result of tax rises on businesses announced in the budget. The tax hikes, including a rise in National Insurance (NI) contributions from employers, will lead to a jump in costs for shoppers. Starting next April, employers will need to contribute 15% NI on wages over £5,000, a change from the current rate of 13.8% on wages exceeding £9,100. The chancellor’s budget included £40 billion in total worth of tax rises, with more than half of these to be paid for by employers. Higginson called on the government to “phase” in the increases in NI and minimum wages for businesses over the next two to three years rather than in April next year. In addition, Higginson warned that if the tax rises “go through without any sort of feathering, there will be significant inflation in prices”.
   
• German energy firm RWE has reduced its spending plans for offshore wind projects due to increased risks following Donald Trump's re-election. The company has cut €3 billion from its spending plans for the next financial year and will delay its plans to invest €55 billion in renewables before 2030. Trump's victory has caused uncertainty in the renewables sector, leading to investors selling off green energy stocks. For example, Trump has pledged to stamp out Joe Biden's Inflation Reduction Act, which would provide significant financial support to healthcare, utilities and clean energy companies. However, the CEO of Britain’s SSE Alistair Phillips-Davies believes that this could be “a real positive” for the UK. Davies explained that the UK could seize the clean energy slowdown in the US as an opportunity to secure a greater share of global supply chains and manufacturing opportunities.

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