FTI Consulting News Bytes – 27 March 2026

FTI Consulting News Bytes

The digital and economic landscapes are shifting rapidly this week as the UK faces a stark OECD warning that it will suffer the most among major economies from the conflict in Iran due to its heavy reliance on gas. Meanwhile, a “Big Tobacco moment” for tech has arrived, with a landmark US ruling finding Meta and Google liable for addictive designs, prompting Apple to introduce mandatory age checks for UK iPhone users to satisfy tightening safety regulations. Financial inequality is also under the spotlight as BlackRock’s Larry Fink warns that the AI boom risks widening the wealth gap between capital owners and workers. Amidst this volatility, the BBC has pivoted toward a tech-first future by appointing former Google executive Matt Brittin as its new Director-General to navigate digital transformation and high-stakes legal challenges.

This week’s news

UK set to suffer most from Iran war – OECD report

The OECD has warned that the UK is set to suffer the most severe economic impact among major economies due to the escalating conflict in Iran. In its latest interim outlook, the organisation slashed the UK’s 2026 growth forecast to just 0.7% (down from 1.2%) and raised inflation expectations to 4%. The UK is particularly vulnerable because of its heavy reliance on gas-fired power, leaving it more exposed to surging energy prices than its European peers. Consequently, Britain is projected to have the second-highest inflation rate in the G7, trailing only the US, and the second-lowest growth, ahead of only Italy. CNBC noted that the UK entered 2026 on a “weak note,” lacking the growth momentum needed to buffer against energy and food supply shocks. Chancellor Rachel Reeves acknowledged the “significant hit,” while analysts warn that sustained disruption could lead to further downgrades and a renewed cost-of-living crisis.

Landmark social media trial punishes Meta & Google 

This week, a Los Angeles jury found Meta and Google liable for the “addictive design” of Instagram and YouTube, awarding a 20-year-old in $6 million in damages for mental health harms. BBC News reported that this historic ruling validates the theory that platforms can be treated as “defective products” due to features like infinite scroll and engagement algorithms. Meta and Google said they disagreed with the verdict and intended to appeal. With over 3,000 similar lawsuits pending, the decision could force a global overhaul of platform mechanics. Experts suggest this is a “Big Tobacco moment” that may mandate radical changes to how social media is engineered for younger users. In related news this week, an independent game developer for Roblox said parents should monitor children playing the game ‘24/7’.

BlackRock CEO warns of AI-driven inequality

Larry Fink’s annual shareholder letter warns of a “real risk” that artificial intelligence will exacerbate wealth inequality. As per The Times, the BlackRock chief executive highlights that gains from AI are currently concentrated among a small elite with the capital and infrastructure to deploy the technology at scale. Fink notes a widening chasm between those earning an income through labour and those benefiting from capital returns. Since 1989, US stock market growth has outpaced median wage increases fifteenfold; he fears AI will accelerate this trend. Although many households have some market exposure, the wealthiest 10% own 90% of equities, fuelled by an AI-driven rally where a handful of stocks account for the majority of market gains. To prevent a “K-shaped economy” where capitalism feels broken for the masses, Fink argues for broader access to capital markets, ensuring more people participate in the prosperity generated by this technological shift.

Apple brings in age checks for UK iPhone users

The case news regarding Apple’s decision to implement mandatory age checks for UK iPhone users marks a significant shift in mobile privacy and safety protocols. Following pressure from regulators and recent landmark social media verdicts, Apple is introducing a system that uses facial estimation technology and official ID uploads to verify users’ ages before they can access certain apps or social platforms. The move is designed to comply with the UK’s strengthening Online Safety Act, aiming to prevent minors from accessing age-restricted content and to curb the reach of addictive algorithms. While privacy advocates raise concerns about the centralisation of biometric data, Apple maintains that the verification process is “on-device” and encrypted to ensure user anonymity. Industry analysts suggest this sets a global precedent, potentially forcing a total redesign of the App Store ecosystem. As Apple pivots towards proactive safety, other hardware manufacturers are expected to follow suit to avoid mounting legal liabilities.

Ex-Google exec appointed new BBC Director-General

The BBC has appointed Matt Brittin, the former Google President for EMEA, as its 18th Director-General. Succeeding Tim Davie, who resigned following controversies over editorial impartiality, Brittin will officially take the helm on 18 May 2026.Brittin’s appointment signals a strategic shift toward digital transformation. As a tech veteran with 18 years at Google, he is expected to navigate the BBC through a “moment of real risk” characterized by shifting media consumption and a challenging funding landscape. His immediate priorities include negotiating the Royal Charter renewal and managing a high-profile $10 billion lawsuit from US President Donald Trump. Reuters reports that while his lack of traditional broadcasting and editorial experience has drawn scrutiny from some insiders and political critics, his expertise in AI and digital platforms is viewed by the BBC Board as essential for the corporation’s survival. Rhodri Talfan Davies will serve as interim Director-General until Brittin’s tenure begins.

Top Tweets of the Week

• The Financial Times tweets: “Arm launches own AI chip in high-stakes strategy shift.”
• Zoe Kleinman, Tech Editor at the BBC tweets: “That didn’t last long – it’s also the end of OpenAI’s partnership with Disney. And the firm has quietly closed its ChatGPT WhatsApp account. Feels like a company doing some belt tightening. Thanks to all who sent me their fave Sora videos, many of which feature Sam Altman.”
• Mark Kleinman, City Editor at Sky News tweets: “Exclusive: Manna Air Delivery, a drone delivery firm which counts Deliveroo and Uber among its partners and Coca-Cola’s bottling arm as one of its investors, has landed a $50m funding injection from backers including the Ireland Strategic Investment Fund.”

Number of the week

75% The proportion of the S&P 500’s total gains in the three years following the launch of ChatGPT that were driven by AI-related stocks, according to research from JP Morgan Asset Management.