In today’s Digest, we discuss Netflix acquiring Warner Bros Discovery, X being hit with a €120m EU penalty, and the UK eyeing tougher laws for AI chatbots.

Netflix to acquire Warner Bros Discovery

Netflix has announced the acquisition of Warner Bros. Discovery, including its film and television studios, HBO Max and HBO. The exclusive negotiations come after a fierce bidding contest that saw the streaming giant edge out rivals such as Paramount Skydance and Comcast. 

The acquisition marks a significant change in strategy for Netflix, which has long resisted investing in traditional Hollywood studios.

X hit with €120m EU penalty

The European Union has imposed a €120m (£105m) penalty on X, marking the first sanction under the bloc’s Digital Services Act for content-moderation breaches. The Commission said that X misled users with its paid “blue tick” verification, blocked researchers from accessing platform data, and failed to set up a proper advertising repository.

Despite early speculation that regulators might go after Elon Musk’s broader business empire, the fine was calculated without taking into account his estimated USD$467bn (£352.7bn) fortune.

UK eyes tougher laws for AI chatbots

UK ministers are weighing tougher controls on AI chatbots amid concerns they could encourage self-harm among teenagers. Technology Secretary Liz Kendall told MPs she was “especially worried” about children developing unhealthy attachments to generative AI. She noted that some AI applications currently fall outside the Online Safety Act, prompting officials to examine how the legislation could be expanded to include these emerging platforms. “If there are measures we need to do to protect kids online we will take that,” Kendall said.

While certain regulators already have oversight of user-generated chatbots on social media, Kendall stressed the importance of a targeted approach rather than a broad, sweeping law. She indicated that any future action would focus on specific risks posed to young users.