Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

The European Commission has said Meta is not doing enough to keep children under 13 off its platforms and must change the design of Instagram and Facebook. Meta, Facebook and Instagram were charged under the European Union's Digital Services Act, which requires Big ​Tech to do more to tackle illegal and harmful ​content on their platforms. The charges came after a two-year ⁠long investigation by the commission. "Our preliminary findings show that Instagram and ‌Facebook ⁠are doing very little to prevent children below [the age of 13] from accessing their services," EU tech chief Henna Virkkunen said. "Terms and conditions should not be mere ​written statements, but ​rather the ⁠basis for concrete action to protect users – including children." The commission could issue a fine of up to 6% of Meta’s worldwide revenue. Meta said it disagreed with the commission’s findings, and called age-verification an “industry-wide challenge.”

 

New York Times

Politico

Reuters

Alphabet's Google has signed a deal with the U.S. Department of Defense to use its artificial intelligence models for classified work. The agreement allows the Pentagon to ​use Google's AI for “any lawful government purpose.” It states: "the parties agree that the AI System is not intended ​for, and should not be used for, domestic mass surveillance or autonomous weapons (including target selection) without appropriate human oversight and control." The ‌agreement ⁠does also however observe that Google does not have the right to control or veto lawful government operational decision-making.

 

Reuters

The Information

Verena Ross, chair of the European Securities and Markets Authority, has warned of the growing risks from and potential speed of cyberattacks amid increased geopolitical tensions. The securities regulator has been contacting financial entities it supervises to assess their cybersecurity defences in light of recent developments in AI, Ross said. "We collectively between the national and the EU level need to up our game to try to ​ensure that we have the capability to properly look at what financial entities are doing in this space and that we also build up our expertise so ​that we can oversee the critical third party providers," she said.

 

Reuters

The Supreme Court appears likely to back Cisco's push to dismiss claims it was complicit in China's torture of members of the Falun Gong religious minority. A lawsuit claims the tech firm helped Beijing create an internet censorship program, known as the Golden Shield, that enabled the government to monitor and harm members of the movement, which is prohibited in China. The New York Times says the court’s decision could have broader implications for lawsuits seeking to hold companies liable for international human rights abuses.

 

Bloomberg Law

A court in Taiwan has sentenced Chen Li-ming, a former employee of Tokyo Electron, to 10 years in prison for stealing trade secrets from Taiwan Semiconductor Manufacturing Corp. (TSMC). The court also imposed a fine of 150m new Taiwan dollars ($5m) on Tokyo Electron, while four others received sentences of up to six years. Judge Chang Ming-huang said that Chen used his connections at TSMC to illegally access and share sensitive information to enhance Tokyo Electron's technology and bids. Tokyo Electron acknowledged the court's decision and pledged to improve its information management systems, although it maintained that no organizational wrongdoing was found.

 

U.S. News

Brazil's top court has been urged to suspend the $2.8bn sale of local mining company Serra Verde to USA Rare Earth on national security grounds. In a filing to the Supreme Court, left-wing Brazilian political party Rede Sustentabilidade argued that Brazilian law doesn’t provide sufficient safeguards for the national interest as required by the Constitution in the exploitation of strategic mineral resources.

 

Bloomberg

The Federal Trade Commission (FTC) has reported that losses from social media scams have surged eightfold, with nearly 30% of victims indicating that these scams began on social platforms. Facebook was the leading source of these scams, significantly outpacing WhatsApp and Instagram. The FTC noted that shopping scams were the most prevalent, with over 40% of victims losing money on items advertised online. Investment schemes also contributed to $1.1bn in losses.

 

Techcrunch

CNET

Former Apollo risk chief Chak Raghunathan says some newer life insurers could struggle to stay afloat in a downturn, citing their heavy reliance on private credit and newer savings products.

 

Financial Times

U.S. consumer confidence has risen slightly in April, supported by strong tax refunds and improved views on jobs and income, although concerns about inflation and geopolitical tensions remain. The Conference Board’s consumer confidence index increased to 92.8 from 92.2 in March, driven by a rise in expectations for the economy, while views on current conditions dipped marginally. Optimism was boosted by perceptions of a stronger labor market and household income prospects, even as higher oil prices linked to Middle East tensions continued to weigh on sentiment. Inflation expectations eased slightly but remained elevated, with consumers still facing high living costs influenced by tariffs and global conflict. Confidence trends varied by demographic and political groups, with younger consumers more optimistic than older cohorts, while overall sentiment remains fragile despite continued consumer spending resilience.

 

Reuters

US News and World Report

FedEx is preparing to return its MD-11 cargo aircraft to service next month after Boeing developed a replacement bearing to address a structural issue that led regulators to ground the fleet following a fatal crash in November. The grounding has cost FedEx around $200m in lost operating income and leasing expenses, and while the company has validated the fix, it is awaiting final FAA approval before resuming flights, with a phased return expected as early as May.

 

Wall Street Journal

Pernod Ricard and Brown-Forman have ended their proposed merger talks after failing to agree on deal terms, with both parties citing a combination of factors including valuation, debt structure and overall transaction economics. The discussions, which would have combined the world’s second-largest spirits group with the leading American whiskey producer, were mutually terminated in what the companies described as being in shareholders’ best interests. During the process, Brown-Forman also attracted a competing approach from U.S.-based spirits group Sazerac, which has reportedly offered around $15bn, adding further complexity to negotiations. While the proposed Pernod transaction could have allowed the founding Brown family to retain a stake and influence in the combined entity, no agreement was reached.

 

Bloomberg

Financial Times

New York Times

Reuters

Chipotle has rejected claims that it is heading toward bankruptcy or closing locations, clarifying that the reports stemmed from confusion with a past test venture and confirming that its core business remains strong. The company highlighted solid financial performance, reporting $11.3bn in revenue for 2024 (up over 14% year-on-year), more than $2bn in cash reserves and zero debt, while operating over 3,700 restaurants globally. Looking ahead, Chipotle plans to accelerate expansion with up to 345 new openings in 2025, the majority of which will include its drive-thru “Chipotlane” format, underscoring continued growth ambitions despite the misinformation.

 

ABC News

Some companies are asking employees to lock devices in pouches to protect data - and as simply a way to remove distractions, and build discipline, focus and team cohesion within their workforce.

 

Financial Times