FTI Consulting News Bytes – 15th July
In the UK, the Online Safety bill seemed to be reaching enaction, before political turmoil threw it off course. The Competition and Markets Authority was active, launching a probe into sports broadcasters amid concerns of price-fixing. Meanwhile in the US, the Federal Trade Commission redirected its plan of attack on Big Tech, suggesting large tech companies might be exploiting their position as buyer for a multitude of smaller businesses. We then turn to Uber, as files from a large-scale leak accuse the ride-share company of secretive workplace practices and illicit lobbying tactics between 2013 and 2017. We round off with some crypto news, as Snap explores the introduction of ‘NFT filters’.
This week’s news
The Online Safety Bill faces further challenges
Amidst chaos in the House of Commons, the Online Safety Bill continues on its arduous journey. The Bill seeks to shape the way we access the internet and make the web a safer place for vulnerable groups. However, various prominent Conservative party members have voiced their objection, concerned that the legislation would hinder free speech. Katie Prescott from The Times warns that recent political turmoil may be being leveraged to slow the Bill’s progress. Though it was slated to see its final commons stage next Wednesday, more recent reports suggest the Bill may have been dropped until the autumn.
Competition and Markets Authority opens sports broadcasting probe
The UK competition regulator is investigating concerns that major sports broadcasting companies, such as BT and Sky, are fixing rates paid to freelance workers. The Financial Times reports on the investigation, which will focus on the pay rates of highly skilled staff such as sound engineers and camera operators. The Competition and Markets Authority suspects that large broadcasters are fixing these rates. A camera operator claims that broadcasters adjust their prices in coordinated fashion, and the flat day rate has increased just £40 in 7 years. The investigation marks the organisation’s first probe into sports broadcasters since its predecessor, the Office of Fair Trading, launched an investigation into a media rights deal between the Racecourse Association and other major broadcasters in 2004.
The FTC changes its strategy against Big Tech
The Federal Trade Commission changes its plan of attack on Big Tech, shifting its focus from large tech companies’ monopoly to their ‘monopsony’. The latter term refers not to the companies’ dominance as sellers, but as buyers. Tech companies work extensively with smaller businesses as their dedicated vendors, or as hosts for their advertisements. The FTC insists that the smaller businesses that sell to Big Tech are at risk of exploitation. Developers looking to list their products on Apple’s App store, for example, or manufacturers seeking to sell their products on Amazon, have little alternative to these giant platforms. As yet, the FTC has struggled to realise decisive action against Big Tech, but hopes its new tactics might bear fruit. The Wall Street Journal reports.
The Uber Files
Thousands of files leaked to The Guardian accuse Uber of flouting laws and courting top politicians, including Emmanuel Macron from 2013-2017. Additionally, how Uber may have exploited violence against drivers during protests, whilst under former CEO, Travis Kalanick. The files also reveal Uber’s methods of preventing the police from accessing the company’s computers, by activating their “kill switch” in the event of law enforcement officers arriving at their offices in locations including Amsterdam, Canada, and France. Mark MacGann, Uber’s former chief lobbyist for EMEA came forward as the source of the leaked data, and commented: “It is my duty to speak up and help governments and parliamentarians right some fundamental wrongs”. In a statement responding to the leak, Uber admitted to “mistakes and missteps”, but said it had been transformed since 2017 under the leadership of its current chief executive, Dara Khosrowshahi.
Snap explored plans for users to showcase NFTs as filters
According to reporting in the Financial Times, Snap is preparing to test a feature that would allow NFT artists to showcase their designs on Snapchat as augmented reality filters. Developers will be able to create non-fungible tokens via a third-party service, before transferring them to Snap as lenses. The test, which is scheduled to start at the end of August, comes as social media platforms increasingly turn to digital collectibles such as NFTs to attract influencers and their fans, to boost broader user numbers in the face of competition from newer entrant TikTok. NFTs and other digital collectibles exploded in popularity in 2021, but as the hype has subsided, prices have plummeted in line with plunging values of crypto assets in recent months.
Top Tweets of the Week
- Nasa Webb Telescope reveals ‘the deepest & sharpest infrared image of the early universe ever taken’
- Eleanor Langford, Political Reporter for Politics Home, warns that the Online Safety Bill may have been dropped until autumn
- Sebastian Siemiatkowski, Co-founder and CEO of Klarna, tweets about Klarna’s $800m financing round
Number of the Week
6.64bn – the amount in USD for which Brookfield Infrastructure Partners and DigitalBridge Group have agreed to pay for a 51% stake in Deutsche Telekom’s tower business.
What’s happening next week?
- 18 July: Lords report on BBC funding, Hearing in class action against Google and Alphabet brought by consumer champion Liz Coll
- 19 July: City of London Corporation’s Financial and Professional Services dinner
- 21-24 July: Comic-Con
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