Cronyism and diplomacy, the new man at Apple, and the Meta settlement
Welcome to our press review of events in the United States. Every Wednesday we look at how the Swiss media have reported and reacted to three major stories in the US – in politics, finance and science.
Social media giant Meta has agreed to pay up to $18 billion (CHF14.5 billion) to settle claims that its social media platforms, which include Facebook and Instagram, harm children. One Swiss newspaper said this “sent a strong signal” and was “good news” for young people. Another reckoned Meta had “got off lightly”. What do you think?
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US President Donald Trump has revolutionised – and weakened – American diplomacy by sidelining the State Department in favour of a personal foreign policy conducted via social media and non-professional special envoys, says Swiss public broadcaster RTS.
The recent trip of CIA director John Ratcliffe to Moscow to revive peace negotiations with Ukraine “stood out”, RTS wrote on Monday in an in-depth analysis. “Since his return to the White House, Donald Trump has appeared to have abandoned this sort of more or less traditional diplomacy,” it said.
“Believing he can do without experts, he personally conducts US foreign policy via his Truth Social network and a small circle of special envoys – close associates with no diplomatic experience, such as his son-in-law Jared Kushner or the businessman Steve Witkoff. The State Department, once renowned for its international expertise, has very clearly been relegated to the background.”
RTS noted that although the US is active on several fronts, it continues to slash its diplomatic workforce: more than 3,000 posts – a fifth of the State Department’s workforce – have been cut in the past 18 months.
“More than a hundred US embassies no longer have ambassadors, particularly in Africa and Latin America. The Middle East is also affected: half of the embassies there are understaffed, amid the ongoing conflict with Iran. There are no accredited diplomats in Saudi Arabia, nor in several countries in the Persian Gulf,” the French-language broadcaster explained. Europe is no exception, it added: there are still no ambassadors in Germany or Ukraine, despite these posts being essential amid the conflict with Russia.
“Embassies that no longer have ambassadors are now run by chargés d’affaires who have less influence in the host country, less power and fewer points of contact in Washington. This situation weakens US leadership in many regions of the world, particularly in the face of China and Russia.”
According to RTS, out of 101 ambassadorial appointments, Trump appointed only nine career diplomats, meaning that over 90% of appointments were political. His predecessors reserved only 25-30% of posts for their allies and donors. “The criterion is no longer professionalism or competence, but loyalty to the president and the defence of his ‘America First’ agenda.”
The result, the broadcaster said, quoting the head of the Paris office of the ECFR (European Council on Foreign Relations), is that the US now finds itself with “unprofessional ambassadors and Trump supporters who are fuelling tensions with its European allies”.
On Tuesday John Ternus succeeded Tim Cook as CEO of Apple, “a company at its peak – and with a foreseeable problem”, according to the Neue Zürcher Zeitung (NZZ). The Swiss media have been profiling Ternus and the challenges he faces.
“Hardly anything is known about the 51-year-old’s private life,” the Tages-Anzeiger admitted. He was born in California, studied mechanical engineering in Pennsylvania and has worked at Apple for 25 years, most recently as head of of the company’s industrial design team. “Ternus is regarded as a competent, focused and creative problem-solver,” it said.
It sounds like he’ll need to be. “Several unresolved problems await Ternus,” said the NZZ. For starters there’s the transition into the AI era. “Apple is the only major tech company that neither maintains its own leading AI research teams nor invests tens of billions in AI infrastructure,” the Zurich paper said. “Ternus must define what role Apple will play in AI.”
But the biggest challenge for the new CEO, according to the NZZ, will be to find a successor to the iPhone, “the 20-year-old phone that keeps the entire group afloat, much like a wealthy grandmother supporting her extended family”. It noted that “every second dollar Apple earns comes from the iPhone. Now Apple urgently needs a new blockbuster to carry it into the future. Since the AirPods ten years ago, the company hasn’t launched any truly new device that has won over customers”.
This could happen as soon as next Wednesday, September 9, at Apple’s annual product presentation, under the motto “Surprise and Shine”. “It’s still unclear exactly how Apple intends to surprise us,” Swiss public broadcaster SRF said. “Experts reckon that Ternus will launch the first foldable iPhone as well as a super-smart touchscreen – a screen that allows you to control your devices at home. […] In the medium term, Apple will also be launching headphones with a camera.”
As for the division of responsibilities between Cook and Ternus, SRF explained that the latter is now responsible for the group’s day-to-day management, while Cook is taking on the role of chairman and thus strategic leadership. This includes focusing on political relations – in particular, contacts with US President Donald Trump on the one hand and the Chinese leadership on the other. “It’s a delicate balancing act that he has handled well so far.”
Social media giant Meta has agreed to pay up to $18 billion (CHF14.5 billion) to settle claims that its social media platforms harm children. The news received a cautious welcome from Swiss newspapers.
Meta, which owns Facebook and Instagram, will also have to implement a range of measures aimed at better protecting young people online, including default daily time limits and night-time blocks.
“Good news for the younger generation,” wrote the Neue Zürcher Zeitung (NZZ) on Thursday, the day after the verdict. Le Temps was decidedly less optimistic: “Be warned – there’s no guarantee that these measures will be effective.”
“The message could hardly be clearer: social media platforms are finally being held to account. Other platforms – and countries – should follow suit,” the NZZ said. “Of course, there will be hurdles to implementation. Young people are resourceful when it comes to getting round the rules,” it continued, but the Zurich newspaper maintained that the settlement sent a strong signal.
However, the Tages-Anzeiger reckoned Meta had “got off lightly”. “It’s now official: Meta’s social media platforms, particularly Facebook and Instagram, are addictive and cause psychological harm,” it wrote on Thursday. The problem, it said, was that the settlement was reached out of court – the only way for Meta to avoid a trial in which the claims were actually much higher. Four states had even demanded almost $200 billion.
“A trial would have forced Meta to disclose many trade secrets,” the Tages-Anzeiger added. “The settlement has reduced the fine to 1.2% of the company’s market valuation. This is unlikely to affect investors or share prices in the long term.” Indeed, Meta shares rose as much as 4.1% after the announcement and closed the day up 1.1%.
“At first glance, Mark Zuckerberg’s company – which has always maintained its innocence – has come out of this extremely well,” Le Temps concluded. “Will these measures be mandatory? Exactly which young people will be affected? What burden will this place on parents? To what extent can these protective features be circumvented? Will they be sufficient? Will this only apply to US users? There are many questions.”
The next edition of ‘Swiss views of US news’ will be published on Wednesday, September 9. See you then!
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