Your commercial news round-up: Tesla, Pfizer, Amazon, BP, Barcelona FC, Spotify

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• Electric vehicle giant Tesla had to recall more than 26,000 cars following a software error, which could result in windshield defrosting issues, amid preparations for a potential lawsuit involving racism and harassment claims. The manufacturer will recall several models to perform a software update to fix the error. Meanwhile, the California Department of Fair Employment and Housing has alleged that systemic harassment and discrimination occurred at the company’s Fremont factory between 2015 and 2019 – it has not yet filed the lawsuit. Tesla has responded, calling the lawsuit “unfair and counterproductive”, and said that it will contest it when it is filed.

• US pharmaceutical company Pfizer saw annual sales and profits double during the pandemic, with revenues jumping from $41.7 billion in 2020 to $81.3 billion in 2021, and profits increasing from $9.2 billion to $22 billion. Pfizer’s covid-19 vaccine, Comirnaty, had a helping hand in the jump, having accounted for $36.8 billion of the company’s total revenue. The company has predicted that the vaccine, which is used in more than 160 countries, will generate another $32 billion in 2022. However, the profits being made from the vaccines have been met with some criticism. Towards the middle of last year, campaigners called for a waiver on vaccine patents “to allow more producers to get more vaccines made” and ensure equal access to the vaccine.

• The Competition and Markets Authority (CMA) has announced that Amazon must now comply with the Groceries Supply Code of Practice, following its movement into the UK’s grocery sector. Retailers that report an annual turnover of more than £1 billion are required to adhere to the code, which ensures that grocery suppliers are treated fairly. The US company opened 17 physical stores in the UK, including 15 Amazon Fresh food shops and two 4-star retail stores, as part of its expansion into the UK. Adam Land, the CMA’s senior director, remedies, business and financial analysis, said that the “decision to designate Amazon helps to ensure a level playing field for companies active in the groceries sector as people’s buying habits evolve.”

Meanwhile, Amazon has also recently signed a “multimillion-pound” deal to secure 450,000 square feet of dedicated film and TV production space at Pinewood’s Shepperton Studios in Surrey. It is thought that the deal will generate “growth and create jobs with thousands of opportunities for the producers, actors and directors of tomorrow”, according to Chancellor Rishi Sunak.

• Calls for a windfall tax on energy companies’ bumper profits have been shut down by oil giant BP. The company reported profits of £9.5 billion for 2021, while more recently Shell revealed profits of $19 billion. BP explained that “a windfall tax on UK oil and gas producers would not encourage investment in producing the UK’s gas resources” and that the UK should continue its low carbon “energy transition as fast as possible.” This news follows the announcement that domestic energy bills are expected to rise by 54% in April. Despite the continued reliance on fossil fuels across the globe, oil giants are being urged to transition to lower carbon alternatives; a move they claim requires bigger profits to fund.

• A £236 million deal is set to be announced between Barcelona Football Club and streaming platform Spotify, which includes title rights on the club’s revamped stadium Camp Nou, plus shirt sponsorship. The sponsorship, which the club refused to comment on, will see both the men’s and women’s team wear shirts with the Spotify logo. The club’s current deals are due to end in the summer. Swedish streaming platform Spotify is also currently under fire as artists including Neil Young and Joni Mitchell have demanded their music is removed from the platform, calling into question the company’s ethics after issues with controversial podcaster Joe Rogan.  

Check the News every Thursday for this weekly commercial news round-up.

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