EU Digital Services Act Faces First Legal Challenge; AI-Generated Junk Sites Monetised by Programmatic Ads

In today's ExchangeWire news digest: the EU's landmark Digital Services Act is challenged by retailer Zalanda; AI-generated made-for-advertising sites are pulling in money from programmatic ads; and HSBC now allows its customers to trade cryptocurrencies available on Hong Kong's stock exchange.

Digital Services Act challenged in EU

Europe’s largest online fashion retailer, Zalando, has alleged it has been unfairly targeted by the EU’s Digital Services Act. The act, which comes into effect on 25th August this year, obligates tech firms to police content on their platforms more stringently, with bigger companies expected to do more to actively tackle misinformation on their sites. Zalando’s complaint concerns its label as a “very large platform” under the act, with CEO Robert Gentz stating, “The DSA is the right thing to do but we are puzzled that we were designated as a very large online platform alongside 18 other companies. We’re the only European company on that list.” The German company claims that the DSA labelled it unfairly on the basis of site visitors instead of users.

AI-generated junk sites pulling in paid ads

A new report from media research organisation NewsGuard has revealed that websites displaying unreliable AI-generated content are pulling in paying advertisers. The report found that over 140 prominent brands are paying for adverts that are served on sites full of AI-generated content, very possibly without their knowledge. The research highlights how generative AI is being used as a new avenue for “made for advertising websites”, wherein low-quality content is produced for the sole purpose of attracting advertisements. One such site flagged by NewsGuard published over 1,200 articles per day.

HSBC allows customers to trade Bitcoin, Ethereum ETF

Financial services giant HSBC will now allow its customers to trade Bitcoin and Ethereum exchange-traded funds (ETFs) listed on Hong Kong’s stock exchange. The bank recently listed crypto ETFs on its Easy Invest mobile app, a move which will broaden its Hong Kong-based customers’ access to cryptocurrencies. HSBC has made a number of strides towards the adoption of Web3 technology; last year, the bank partnered with The Sandbox, a decentralised virtual gaming platform, as an entry point to the metaverse.

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Fact of the Day

2.92% – the dividend yield of Ethereum.

Source: The Motley Fool