Skyworks shares fall more than 14% as outlook misses estimates
The chipmaker expects a sequential decline in smartphone revenue and said it completed its Qorvo acquisition after the fiscal fourth quarter.
Warren and four lawmakers press McDonald’s on AI pricing
The lawmakers want answers by November 16 on customer data, franchisee adoption and antitrust reviews of the company’s pricing tools.
McDonald’s CEO Chris Kempczinski has been asked to explain the chain’s algorithmic pricing practices by US Senator Elizabeth Warren and four other lawmakers. In a November 2 letter, they expressed concern that the technology could raise consumer prices and enable collusion among franchisees.
Their questions cover whether loyalty-program data about individual customers informs price recommendations, how McDonald’s might promote adoption among franchisees, and whether deployment followed an antitrust review. The deadline for a response is November 16.
The letter draws on a September 29 media report describing restaurant-specific menu recommendations generated through machine learning. The report said those recommendations partly reflect estimates of customers’ willingness to pay. Three franchisees said the system had increased differences in prices between neighboring restaurants.
McDonald’s offered no comment on the letter. Responding to the earlier reporting, the company said recommendations do not rely on individual customer information and franchisees can choose their own prices rather than follow the tools.
Separately, two recently filed federal consumer class-action lawsuits allege McDonald’s unlawfully coordinates pricing among franchised and company-operated restaurants through a central algorithmic system. After the first suit, the company denied that AI sets menu prices and said franchisees decide prices independently.
Warren, a Massachusetts Democrat, was joined on the letter by Democratic Representatives Greg Casar, Becca Balint, Jesus Garcia and Mary Gay Scanlon.