Good afternoon,

Here’s the headlines for this week: 25 April 2025

CONSUMERS

IMF warns of ‘major negative shock’ from Trump’s tariffs

• The IMF downgraded global, U.S., and UK growth forecasts due to Trump's tariffs, citing a "major negative shock" to the global economy.
• Global GDP growth for 2025 is now projected at 2.8%, down from 3.3%, with the U.S. and UK also seeing significant reductions.
• Emerging markets are particularly vulnerable, facing higher borrowing costs and reduced international aid.

TECH

‘Silicon Six’ accused of avoiding almost $278bn in US corporation taxes over 10 years

• Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft reportedly paid an average corporate tax rate of 18.8%, below the U.S. average of 29.7%.
• The Fair Tax Foundation claims these companies inflated their tax payments by $82bn through contingencies for taxes they didn't expect to pay.
• The foundation suggests that tax avoidance is "hardwired" into these firms' business models.

OpenAI is building a social network

• OpenAI is developing a social network similar to X (formerly Twitter), featuring a feed centered around ChatGPT's image generation.
• The project is in early stages, with CEO Sam Altman seeking external feedback; it's unclear if it will be a standalone app or integrated into ChatGPT.
• This move positions OpenAI in direct competition with Elon Musk's X and Meta's upcoming AI assistant features.

Google loses online advertising monopoly case

• A federal court ruled that Google's dominance in the online advertising market violates U.S. antitrust laws.
• This decision could lead to significant changes in the digital ad industry and affect Google's advertising business model.
• Google plans to appeal the ruling, which marks its second major antitrust loss in recent times.

Is Meta a Monopoly? What to Know About the FTC's Antitrust Case

• The FTC has brought antitrust cases against Meta, questioning its dominance in the social media market.
• These cases are part of a broader scrutiny of Big Tech companies, including previous rulings against Google's search business.
• The outcomes could have significant implications for Meta's business practices and the tech industry at large.

TikTok takes on Google Maps by surfacing reviews in the comments tab

• TikTok is testing a feature that displays reviews for locations directly within the comments section of videos.
• This move aims to enhance TikTok's search experience and challenge Google's dominance in local search and maps.
• The feature is currently limited to select users and locations, with no official word on a broader rollout.
  

RETAILERS

Temu and Shein Cut U.S. Advertising

• Temu and Shein have significantly reduced their U.S. advertising spend, particularly on Google Shopping ads.
• The cuts are in response to upcoming U.S. tariffs and the end of the de minimis exception for goods from China and Hong Kong.
• Both retailers plan to raise prices effective April 25 to offset the impact of these changes.

Temu, Shein See US Sales Surge Ahead of Small Parcel Tariff

• Despite the looming tariffs, Temu and Shein have experienced a surge in U.S. sales as consumers rush to purchase before price increases.
• The retailers are adjusting their strategies to navigate the changing trade landscape and maintain their market positions.
• The situation underscores the significant impact of trade policies on consumer behavior and e-commerce dynamics.
  

ADVERTISING

Google suspended 39.2 million malicious advertisers in 2024 thanks to AI

• Google utilized AI to suspend 39.2 million malicious advertiser accounts in 2024, a significant increase from previous years.
• Most of these accounts were caught before they could run a single ad, highlighting the effectiveness of AI in ad security.
• The proactive approach aims to protect users and maintain the integrity of Google's advertising ecosystem.

TikTok Ads introduces new exclusion lists

• TikTok has launched two new tools: Video Exclusion List and Profile Feed Exclusion List, allowing advertisers to block specific content from appearing next to their ads.
• These features provide brands with greater control over ad placements, enhancing brand safety and suitability.
• The tools are part of TikTok's broader Safety Suite, accompanied by a new Brand Safety & Suitability Playbook.

Revolve faces $50-million lawsuit alleging influencers hid paid brand partnerships

• Revolve is facing a $50 million lawsuit accusing the company of failing to disclose paid partnerships with influencers.
• The lawsuit alleges that this lack of transparency misled consumers and violated advertising regulations.
• The case highlights the growing scrutiny over influencer marketing practices and the importance of clear disclosures.

See you next week,

The ChannelSight Team

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