Breaking AI & Tech News Analyzed

UK Prime Minister Keir Starmer has announced plans to address addictive features in social media platforms, signaling a potential regulatory shift following a significant US court ruling that held Meta and YouTube accountable for harms caused by their technology designs.The prime minister emphasized that the recent California court verdict reflects rising public expectations for more aggressive regulation of social media platforms. "I'm absolutely clear that we need to go further," Starmer stated, adding that "the status quo isn't good enough" in terms of protecting children online.Starmer specifically mentioned that the government is consulting about banning social media for under-16s and expressed strong commitment to addressing addictive features within social media platforms. These remarks come amid growing international pressure on tech companies to address the potential harms of their products on young users.In the landmark US case, a California jury found Meta and YouTube negligent for failing to provide adequate warnings about the potential dangers of their platforms. The plaintiff, a 20-year-old woman who claimed she became addicted to social media during her childhood, was awarded $6 million (£4.5 million) in damages, with Meta responsible for 70% of the payment and YouTube covering the remainder.The Duke and Duchess of Sussex welcomed the verdict as "a reckoning" for tech companies, stating in a joint statement: "For too long, families have paid the price for platforms built with total disregard for the children they reach." They emphasized that "today, the truth has been heard and precedent has been set" regarding children's safety versus corporate profits.Both Google, which owns YouTube, and Meta have indicated they will challenge the decision. Google claimed the case "misunderstands YouTube, which is a responsibly built streaming platform, not a social media site," while Meta stated it "respectfully disagrees with the verdict and is evaluating our legal options." The verdict came after nine days of deliberation in the first lawsuit concerning social media's alleged harm to young people to reach trial.The ruling has resonated beyond the courtroom, with European Commission digital chief Henna Virkkunen noting that such cases send "a very clear message" to online platforms about the risks they pose. Campaigners for safer social media have celebrated the decision as a potential watershed moment in regulating platforms like TikTok, Instagram, and X.The Molly Rose Foundation, established after the death of 14-year-old Molly Russell who was exposed to harmful content on Instagram, called for legislation that would make "safety and wellbeing the price for tech firms to pay for doing business in the UK." Thomas Lancaster, a computing expert at Imperial College London, emphasized that policies must be effectively enforced to protect those they're designed to safeguard.Sacha Haworth, executive director of the Tech Oversight Project, declared that "the era of big tech invincibility is over," suggesting that the verdict validates concerns about tech platforms' impact on young people that have been raised for years.

The Co-op Group has announced that its chief executive, Shirine Khoury-Haq, will step down this weekend after a challenging year that included a cyber-attack and recent claims of a “toxic” culture at the business.Khoury-Haq will depart on 29 March, and Kate Allum, a board member and former boss of the dairy group First Milk, will step in as interim boss while a permanent replacement is sought.The company, which owns more than 800 funeral parlours and an insurance and legal advisory business, as well as operating more than 2,000 convenience stores, reported an underlying loss of £125m. This is a significant drop from a £45m profit the year before, largely due to a £107m profits hit from the damaging IT hack.Khoury-Haq denied that her resignation was linked to the allegations of a toxic culture, stating that her decision to leave was a personal one. She expressed her desire to “go and do something else”.Sales at Co-op fell 2.3% to £11bn in the year to 3 January, following the mutual’s shops being left with gaps on shelves after the cyber-attack, which knocked £285m off sales.The group cited a “contracting convenience market” and “layered cost headwinds” of about £150m during the year, due to increases in employers’ national insurance, pay and packaging taxes.Khoury-Haq’s departure comes a month after reports of concerns about the culture at the top of the group. In February, the Co-op defended the behaviour of its bosses after reports said senior managers had complained of a “toxic” environment at the retailer.

UK clothing and homeware retailer Next has issued a warning that the ongoing conflict in the Middle East could lead to increased costs and potential price hikes. The company expects the conflict to add £15m to its costs over the next three months.Next stated that it is currently offsetting additional costs on fuel and air freight with savings elsewhere, and it does not expect any impact on profits for the year ahead. However, if the conflict persists beyond three months, prices will have to go up.The company has upped its profit guidance by £8m to £1.2bn for the year to January 2027, following better-than-expected sales in January. Next also noted that sales in the Middle East, which account for 6% of group turnover, could be adversely affected until the summer.Next's pre-tax profits rose 14.5% to £1.16bn in the year to January, with sales increasing by almost 11% to £7bn. The company is focused on cutting costs, including the increased use of AI in warehouse operations to improve efficiency.The retailer has increased its stock holdings by 6% to protect against potential supply chain delays. Next also noted that the conflict's impact on supply chain resilience, freight rates, factory gate prices, and consumer demand is uncertain and will depend on the conflict's duration and its impact on the world's energy infrastructure.

A jury in the United States has ordered social media giant Meta to pay $375m for harming children's mental health and making them vulnerable to sexual exploitation.The verdict, handed down in New Mexico after a six-week trial, marks the first time a US state has successfully sued Meta over child safety issues. State authorities accused Meta, the parent company of Instagram, Facebook, and WhatsApp, of failing to protect minors.Jurors sided with state prosecutors who argued that Meta prioritized profits over safety and violated parts of New Mexico's Unfair Practices Act. The jury agreed with allegations that Meta made false or misleading statements and engaged in 'unconscionable' trade practices that unfairly took advantage of the vulnerabilities and inexperience of children.The case involved testimony from 40 witnesses, including employees-turned-whistle-blowers, and reviewed hundreds of documents, reports, and emails. New Mexico Attorney General Raúl Torrez called the verdict 'a historic victory for every child and family who has paid the price for Meta's choice to put profits over kids' safety.'Meta has stated that it will appeal the verdict, with a spokesperson saying, 'We respectfully disagree with the verdict and will appeal. We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content.'A second phase in New Mexico's proceedings against Meta is scheduled to begin in May, when a judge will hear the state's claim that the company should be ordered to pay additional penalties and make specific changes to its platforms and company operations.

The escalating tensions between the US and Israel against Iran have created a lucrative market for arms manufacturers. As the conflict continues to intensify, defense companies are reaping significant benefits from the increased demand for military equipment and technology.The geopolitical landscape in the region remains volatile, with the US and Israel maintaining a strong stance against Iran. This has resulted in a surge in defense spending, with arms manufacturers capitalizing on the opportunity to supply the necessary equipment.The thriving arms industry is a testament to the enduring demand for military hardware and technology in the face of global conflicts. As tensions persist, it is likely that defense companies will continue to experience significant growth and profitability.

The UK government has taken a significant step in its ongoing efforts to counter Russia's attempts to evade Western sanctions. Armed forces have been authorized to board Russian oil tankers in British waters, a move aimed at disrupting Moscow's 'shadow fleet' of vessels.This fleet, comprising over 600 vessels targeted by sanctions from the EU, UK, and US, uses tactics such as false national flags and opaque ownership structures to export Russian crude oil while avoiding Western sanctions. The new rules apply specifically to vessels sanctioned by the UK.The Royal Navy has previously collaborated with allies to take action against these vessels. For instance, last week it helped track a sanctioned Russian oil tanker in the Mediterranean, which was subsequently boarded by the French navy.The UK's move is part of a broader strategy to hamper Russia's economy and, consequently, its war efforts in Ukraine. Prime Minister Starmer emphasized that the goal is to 'starve Putin's war machine of the dirty profits that fund his barbaric campaign in Ukraine.'However, Russia has warned that direct action against shadow fleet vessels could lead to direct conflict. A senior Russian official, Nikolai Patrushev, suggested that Moscow could deploy its navy to protect Russian-linked vessels from potential European seizures.The UK's defense secretary, John Healey, previously suggested using 'military options' against sanctioned vessels, with any seized oil potentially being sold and the proceeds sent to Ukraine.Before any ship is boarded, its situation will be examined by law enforcement, military, and energy market specialists, with a recommendation made to ministers. Seizure could be followed by criminal proceedings against the owners, operators, and crew for breaches of UK sanctions legislation.

Amazon's cloud computing unit, Amazon Web Services (AWS), has confirmed that its region in Bahrain was disrupted due to drone activity. This incident marks the second time in a month that the company's operations have been affected by the war in the Middle East.An Amazon spokesperson confirmed the disruption, stating that the company is helping customers migrate to alternate AWS regions while it recovers from the incident. However, the company did not provide additional details on the extent of the damage or the expected duration of the disruption.The disruption comes after Iran's Islamic Revolutionary Guard Corps (IRGC) threatened to attack 'economic centres and banks' related to US and Israeli entities in the region. The IRGC-affiliated Tasnim news agency released a list of offices and infrastructure run by top US companies with Israeli links, including Google, Microsoft, and Oracle, which have branches in multiple Israeli cities and Gulf countries.AWS is critical for the operation of many well-known websites and government operations and is Amazon's main driver of profits. Earlier this month, AWS reported that facilities in Bahrain and the United Arab Emirates had lost power, and the company was working to transfer computing workloads to other regions.These attacks come after Iran claimed it is targeting US assets across the Gulf Arab states in retaliation for the joint attack on Iran by the US and Israel that began on February 28. Gulf states have accused Tehran of targeting civilian infrastructure, such as airports and energy facilities.

Revolut, the UK banking app, has reported a 57% increase in profits for 2025, but warned that its support for energy-intensive sectors such as crypto and AI could lead to a reputational risk. The fintech company, which can now launch as a fully fledged UK bank after a five-year wait for regulatory approval, offers crypto trading and has applied for a banking licence in the US.The company's annual report highlighted that cryptocurrency mining and AI datacentres demand large amounts of power, with competition for electricity supplies getting steeper since the US-Israel war on Iran sent energy prices soaring over the past month. Revolut's chief executive, Nik Storonsky, hailed another “landmark year” for the company, which has 68.3 million individual customers and 767,000 business customers.Revolut's growth has been rapid, with revenues climbing 46% to £4.5bn and a £1.7bn pre-tax profit for 2025. The company plans to offer a wider array of banking services in the future, such as lending and other products, and has launched mortgage refinancing in Lithuania. Despite the potential risks, Revolut believes its digital-first approach and emphasis on financial inclusion could lead to it being “relatively insulated and even benefit from an orderly energy transition, relative to traditional financial institutions”.

UK ministers have issued a stern warning that increasing North Sea drilling would leave the country vulnerable to the fluctuations of fossil fuel markets. This cautionary stance comes as the Conservatives and some Labour MPs are advocating for a reversal of the manifesto commitment to not issue new oil and gas licences.Energy Minister Michael Shanks emphasized that the UK is learning from past conflicts to avoid exposure to fossil fuels, which have previously led to households bearing the brunt of price hikes. The government's focus is on clean power to achieve energy sovereignty and national security.Chancellor Rachel Reeves is set to outline plans to protect people from higher energy bills caused by the US-Iran conflict. The plans include measures to clamp down on price gouging, especially by petrol retailers responding to the conflict.Ed Miliband, the energy secretary, stressed that dependence on fossil fuel markets makes the UK a price taker, not a price maker. He argued that new licences in the North Sea would not affect prices and that scrapping the windfall tax would only increase energy company profits.The Labour Party has raised concerns about the impact of increased drilling on the environment and the economy. Claire Coutinho, the shadow energy secretary, argued that turning away from domestic gas would be detrimental, especially during a gas supply crisis.The government spokesperson highlighted the importance of £120bn of public investment in building homegrown energy, including nuclear power projects, to protect working people's bills for generations to come.