Good morning. Facebook owner Meta Platforms and the Federal Trade Commission squared off Monday in a trial that could shape the future of antitrust enforcement and force the tech giant to break itself up by selling Instagram and WhatsApp.

• FTC’s case: The FTC called Meta Chief Executive Mark Zuckerberg as the first witness on Monday in the case, which is seeking to compel the company to undo its acquisitions of Instagram and WhatsApp, alleging it wields an illegal monopoly in social media. Forcing Meta to get rid of those two popular applications would devastate the company’s business, which relies heavily on serving ads to users of Instagram and Facebook.
   
• What Meta says: Meta counters that the FTC’s case ignores how people use technology today. While Facebook and Instagram were once the default options for interacting online, they face stiff competition in the age of video from YouTube, TikTok and others. 
   
• Background: The FTC’s case against Meta has a shaky history that dates back to the first Trump administration. Filed in late 2020, the lawsuit was dismissed the following year by U.S. District Judge James Boasberg, who found the FTC hadn’t provided enough facts to back up its claims. The FTC then filed an amended complaint during the Biden administration that Boasberg said addressed the first complaint’s shortcomings, putting the case back on track. More recently, new Republican FTC Chair Andrew Ferguson has said he is committed to litigating the matter to a verdict.

For more: Meta’s Antitrust Trial Begins Today. Why It’s So Important.

Investment firms are faced with a range of shifting risks, ranging from geopolitics to cybercrime and regulatory risk. Dow Jones Risk & Compliance will host a webinar on April 29 to discuss these risks with Scott Pomfret, a former chief compliance officer and Securities and Exchange Commission trial attorney. You can register here.

Clorox agrees to pay $5.2 million over greenwashing.

Clorox has agreed to pay about 8.25 million Australian dollars ($5.2 million) to settle accusations by Australia’s consumer protection authority that the company made misleading claims about recycled plastic.

The allegations. The Glad-branded trash bags, sold under “Glad to Be Green” branding, were marked as made of “50% ocean plastic recycled,” implying they were made of plastic waste retrieved from the ocean. But the bags were actually made of plastic collected in Indonesia that Glad expected would someday enter the ocean, according to the ACCC. Clorox said it didn’t intend to mislead consumers and it respects the outcome and sees it as an opportunity to enhance its practices.

China warns U.K. about potential investment risk after emergency steel law passes.

The U.K. should avoid turning economic issues into security issues or risk undermining investment in the country by Chinese companies, a Chinese official said after the U.K. passed emergency legislation allowing it to take control of Chinese-owned steel facilities owned by British Steel, a subsidiary of China’s Jingye Group.

The new law. The new legislation gives the U.K. government emergency powers that will prevent the closure of two blast furnaces in Scunthorpe, a town in northern England. The law, passed in an unusual Saturday session of Parliament, lets the government direct the company’s board and workforce, ensure they are paid and order raw materials to keep the furnaces running.

• China has blacklisted 18 American companies amid escalating tech and trade tensions with the U.S., following its decision earlier this month to sanction 27 American companies, according to notices by China’s Ministry of Commerce on April 9.
   
• A group within the U.S. Department of Homeland Security that combats money laundering and other financial crimes has launched an inquiry into cryptocurrency company Anchorage Digital Bank, a Wall Street-backed startup that has been a strong supporter of President Donald Trump’s agenda on digital assets.
   
• The U.S. has rolled out extensive new sanctions targeting Iran’s oil export network, hitting shipping companies, vessels and an oil storage terminal in China in a coordinated action by the Treasury and State Departments.
   
• The U.S. Justice Department said it has established “what are effectively export controls” on “sensitive personal data” of Americans, under a new Data Security Program designed to prevent China, Russia, Iran and other foreign adversaries from accessing and exploiting the information.

China’s exports surge as orders front-loaded before tariffs.

China’s exports surged in March as shipments were likely front-loaded before President Trump’s “Liberation Day” tariffs, but they are expected to falter in the coming months.

Outbound shipments rose 12.4% compared with the same period a year earlier, according to the official data released Monday. That was much stronger than the 2.3% increase in the first two months and the 4.4% growth tipped by a Wall Street Journal survey of economists.

• At China’s Wholesale Hub, U.S. Orders Have Suddenly Halted. One Example: Socks.
• China’s Port Cargos Start to Slow as Tariff Tensions Escalate
• Trump’s Trade War Deepens Threat to U.S. Brands in China

Following first round of nuclear talks, Iran insists on indirect negotiations.

Iran will continue to engage only in indirect talks with the U.S. on its nuclear program, reports Risk Journal’s Anwar Faruqi and Tom Blass, with Foreign Ministry officials emphasizing negotiations are limited “strictly to nuclear and sanctions-related issues,” according to Iran’s state media PressTV.

The clarification follows the first round of indirect negotiations in Muscat, with Iranian Foreign Minister Abbas Araghchi and Steve Witkoff, President Trump’s special envoy for Middle East affairs, leading their respective delegations at the April 12 meeting.

• Every American business is feeling the heat from a trade war and recession fears. For the fragile office-market recovery, it is an especially troublesome time.
   
• A surge in trading activity fueled by investor uncertainty about President Trump’s policies is minting money for Goldman Sachs and other big banks.
   
• The share of German exports to the U.S. reached its highest level last year since 2002, though that uptick could be short-lived given the Trump administration’s raising of tariff barriers on imports from Europe.
   
• The outlook for the German economy cratered this month after U.S. President Trump’s tariff blitz, according to a monthly survey of financial analysts published Tuesday.
   
• Wage growth in the U.K. picked up in the first few months of the new year, suggesting that continued high inflation will remain a concern for the Bank of England, despite the damping effect on growth likely to come from U.S. trade tariffs.
   
• The Organization of the Petroleum Exporting Countries cut its forecast for oil demand growth just days after a surprise decision to boost output, citing the impact of U.S. tariffs on the global economy and crude consumption.
   
• Oil demand growth is forecast to be weaker than previously projected as escalating global trade tensions sparked by U.S. President Trump’s tariffs weigh on the global economy, the International Energy Agency said.
   
• The deadliest missile strike on Ukraine this year pushed up the civilian death toll from Russia’s invasion and widened divisions between the U.S. and Kyiv’s European allies over President Trump’s strategy for ending the war.
   
• Yemeni militias are planning a ground offensive against the Houthis in an attempt to take advantage of a U.S. bombing campaign that has degraded the militant group’s capabilities, Yemeni and U.S. officials say.

DaVita says ransomware attack affecting some operations.

DaVita has been hit with a ransomware attack that has affected some of the kidney-care company’s operations.

DaVita on Monday said the incident, which it became aware of Saturday, has encrypted some elements of its network, and that while it has implemented interim measures to allow for the restoration of some functions, it can’t currently estimate the duration or extent of the disruption.

• Harvard University said Monday it will resist the Trump administration’s demands to change its governance structure over campus antisemitism concerns, saying the government is overstepping its authority. Hours later the government announced a $2.26 billion freeze of Harvard’s multiyear grants and contracts.
   
• Netflix aims to achieve a $1 trillion market capitalization and double its revenue by 2030, ambitious goals that show its growing heft as the largest global streamer.
   
• President Trump’s top advisers and President Nayib Bukele of El Salvador said Monday they didn’t have the authority to bring back to the U.S. a migrant deported in error to a Salvadoran maximum-security prison, raising the legal stakes days after the Supreme Court ordered the U.S. to facilitate his return.

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