FTI Consulting News Bytes – 22 September 2023

FTI Consulting News Bytes

In this week’s edition, we kick off with the news that with just weeks until COP 28, Rishi Sunak volte-faces on net zero commitments for the UK. Next, what has been described as “the real Succession ending” is here, following the announcement that Rupert Murdoch is stepping down as Chairman of Fox News and News Corp. Elsewhere, the UK’s long-awaited Online Safety Bill has been passed by the House of Lords. Then, against the backdrop of the CMA’s response to Big Tech mergers, the Financial Times looks at the conversation surrounding the competition watchdog’s “newfound” influence. Finally, we turn to reports that X could be transitioning to a subscription model – the latest in Elon Musk’s measures to monetise the social media site’s user base.  

This week’s news

Sunak U-turns on net zero commitments

Just weeks before the annual COP 28, the UK Prime Minister Rishi Sunak announced weakening some of the government’s key green commitments in a major policy shift. According to the BBC, this includes delaying a ban on the sale of new diesel and petrol cars from 2030 to 2035 and phasing out the installation of new gas boilers. In an interview with Times Radio, Home Secretary Suella Braverman explained that the government would put the economy before the environment, saying: “We’re not going to save the planet by bankrupting the British people.” 

Rupert Murdoch steps down as Fox Chairman

After close to three decades at its helm, media mogul, Rupert Murdoch, steps down as Chairman of Fox News and News Corp,  AP reports. The announcement comes amidst a turbulent year for Fox, which agreed to pay a $787.5m settlement in April 2023 after being sued over its 2020 reporting of the US Presidential election. Fox News, which has become one of the USA’s most watched news channels, will now be chaired by Rupert’s son, Lachlan Murdoch. 

The Online Safety Bill becomes law 

This week, the much-anticipated Online Safety Bill which is a new law aimed at making social media firms more responsible for users’ safety on their platforms, was passed by the House of Lords. According to the BBC, the nearly 300-page bill will force firms to remove illegal content and protect children from some legal but harmful material. After the royal assent, communications regulator, Ofcom, will be largely responsible for enforcing the bill and companies found to be in breach of the bill will face monetary and potentially operational consequences.  

The newfound influence of the UK’s competition watchdog

The Financial Times explores the wider conversation of the regulator’s “newfound” influence. As it ramps up to gain greater statutory power to regulate digital businesses, some camps are of the view that the CMA is “a bit more unpredictable,” whilst another is “not sure the CMA is more unpredictable than others,” but notes it has “bigger teeth.” 

X eyes subscription model 

TechCrunch reports that X, formally known as Twitter, could be transitioning to a subscription model in the near future to combat the problem of bots on the platform. During a conversation with Israeli Prime Minister Benjamin Netanyahu, X owner Elon Musk, said the company will charge users “a small monthly payment” in order to use the service. Since purchasing the company, Musk’s primary focus has been on monetising X’s user base, with advertiser spending having dropped due to concerns around his moderation policies.  

Top Tweets of the Week

• Bill Gates, Founder of Microsoft: The potential of AI is limitless—but we will only realize that potential if government, the private sector, and civil society work together to maximize the technology’s benefits and minimize its risks.
• The New York Times: Breaking News: Microsoft cleared a major hurdle in its $69 billion acquisition of Activision Blizzard, as British authorities signaled their approval.
• CNBC: Cisco is acquiring cybersecurity software company Splunk for $157 a share in a cash deal worth about $28 billion.

Number of the Week

28 billion – Value of Cisco’s acquisition of Splunk