FTI Consulting News Bytes – 11 April 2025

FTI Consulting News Bytes

In this week’s newsletter, we kick off with the topic that has dominated the news agenda this week: tariffs, as we see the FT and Rolling Stones’ takes on how these could impact the gaming industry. Tariffs aside, we then look into antitrust probes, another issue facing Big Tech in particular. Then, over to company hiring policies, as Shopify confirms its strict AI-first approach. Next, we turn to the UK, where MPs have said that streaming companies, including Netflix and Amazon, should pay taxes to fund the UK drama sector. Finally, as British pubs are struggling, we look at how Airbnb is taking steps to support the pub sector.

This week’s news

The gaming industry is tarriff-ied

Both the Financial Times and Rolling Stone consider the effects of Trump’s tariffs on the gaming industry. Tariffs on goods from China, Vietnam and Japan are expected to raise production costs for consoles, accessories, and physical game media. Supply chain disruption is another component; Nintendo’s delayed preorders in the US for the Switch 2 are indicative of the need for companies to constantly adapt. Other console manufacturers such as Sony and Xbox are also expected to face these pressures due to exposure to Chinese manufacturing. The ‘Entertainment Software Association’ adds that consumer prices may rise across hardware, VR headsets and peripherals (external devices that enhance gaming experiences), potentially suppressing demand. Still, however, GTA 6 and strong appetite for the Switch 2 are expected to drive the industry forward despite the above macro challenges.

Antitrust probes loom over Big Tech

According to Bloomberg, just as the Trump administration’s focus on tariffs has impacted markets, its “hard-line view” against megacap tech stocks (stocks valued over $200bn) has caught some off guard, as several big tech companies face antitrust or regulatory probes. Monica Guerra, Head of US policy at Morgan Stanley Wealth Management, commented that “People expected a complete loosening of regulation, and there’s been a surprise that the Trump administration has continued things that began under Biden”. Despite the signs that tech companies had been anticipating a more favourable regulatory backdrop, including Alphabet Inc.’s proposed $32 billion acquisition of Wiz Inc., the Federal Trade Commission is moving ahead with its antitrust probe of Microsoft that began during the Biden Administration. At the same time, a remedy package from the Department of Justice against Alphabet was more punitive than many expected. The antitrust steps have been viewed as another example of policy uncertainty at a time when erratic tariff announcements have contributed to a spike in volatility.

Shopif-AI?

The Verge reports that Shopify CEO Tobi Lütke has introduced a stringent AI-first hiring policy at the e-commerce company. The policy requires teams to justify why AI cannot perform a role before seeking new human hires. In a March 2025 memo that has now been shared publicly, Lütke emphasised that “reflexive AI usage” is now a baseline expectation, with AI proficiency integrated into performance reviews. Employees must demonstrate they’ve exhausted AI solutions—including tools like Microsoft Copilot and Anthropic’s Claude—before requesting additional resources or staff. Lütke commented that “what we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefit of our merchants”.

MPs push for “Netflix tax” to support British drama sector   

Netflix, Amazon, and other streaming services should pay a levy to fund the UK drama sector, MPs have said, following concerns that their dominance could cause “distinctly British” stories to disappear from the small screen. The Telegraph reports that the cross-party culture, media and sport committee said new tax breaks should also be used to help fund UK dramas produced by the BBC, ITV and Channel 4 – the public service broadcasters who have seen their programme budgets squeezed while the costs of making shows have spiralled. The committee said there was currently a threat to such programming, which was vital to the UK’s identity, national conversation and talent development. The committee concluded that major streamers should commit to paying 5% of their UK subscriber revenue into a cultural fund to help finance dramas with British audiences in mind.

Airbnb’s push to support UK pubs

The UK pub industry has faced severe challenges, exacerbated by the impact of Covid-19 lockdowns on the hospitality sector, with The Guardian reporting that the number of pubs in England and Wales fell below 39,000 for the first time in 2024. This week, The Mirror covers online property rental company Airbnb’s initiative to help. Through renovating disused pub spaces, Airbnb has provided a financial lifeline to struggling British pubs. As part of a partnership with CAMRA, three rural pubs—The Thomas Tripp (Dorset), The Townhouse (Hampshire), and The Swan Inn (Derbyshire)—received £10,000 makeovers to transform spare rooms into cozy guest accommodations. The move is aimed at diversifying income streams for pubs amid rising operational costs and a 6.7% increase in pub closures nationally.

Top Tweets of the Week

• Javier Blas, Energy and Commodities Columnist at Bloomberg: “The sound of the global economy slowing down. It’s better known as a Formula One team, but Hass is also one [of] the world’s top-10 machine tools companies, crucial to build new factories. It’s now warning of a “dramatic decrease” in new orders from both US and foreign customers.”
• Finbarr Bermingham, Europe Correspondent at the South China Morning Post: “Chinese exporters are ditching shipments mid-voyage to the US, surrendering containers to shipping companies to avoid tariff costs. Industry insiders dubbed the move “preparing for the Long March”, a grim metaphor for a prolonged downturn in cross-Pacific trade.”
• Bloomberg: “Helsing, Europe’s most valuable defense tech company, is facing allegations from soldiers and military experts of overpriced drones and glitchy software. The firm stands by its products.”

Number of the week

600 tonnes The total weight of the iPhones that were flown from India via cargo plane by Apple to the US to avoid tariff fees, according to the Daily Mail.