Value of X Falls by 71%; OpenAI Moves to Shrink Risk of Data Privacy Regulation in EU; UK Gov Will Require Ecommerce Platforms to Report User Earnings

by Aimee Newell Tarín on 4th Jan 2024 in News

On today’s ExchangeWire digest: Value of X Falls by 71%; OpenAI Moves to Shrink Risk of Data Privacy Regulation in EU; UK Gov Will Require Ecommerce Platforms to Report User Earnings...

Following a ruinous series of events in 2023, X has found itself in an incredibly precarious position. The platform has lost almost three quarters of its value since it was bought by Elon Musk in October 2022, according to mutual fund company Fidelity, which has marked down its investment in X holdings by 71.5% from its original valuation of shares. Since Musk took control of the platform, at least half of its staff have been dismissed.

While X flounders, OpenAI attempts to shrink its regulatory risk in the EU. An update on its terms was communicated by email on the 28th December, announcing: “We have changed the OpenAI entity that provides services such as ChatGPT to EEA and Swiss residents to our Irish entity, OpenAI Ireland Limited”. The updated terms will come into effect on 15th February 2024. With its Dublin subsidiary established as the data controller for users in the European Economic Area and Switzerland where GDPR is in force, the ability of private watchdogs located elsewhere in the area to act on concerns is reduced. Instead, concerns would typically be referred back to the main established company’s lead supervisor for consideration. Although other regulators still have power to intervene locally in the case of urgent risk, these interventions are usually temporary and exceptional, as most GDPR is taken care of by a lead authority. In effect, it allows OpenAI to streamline privacy oversight of data processing across borders.

In the UK, the government will be exerting more control over the ecommerce market, with a new policy requiring ecommerce platforms on which people sell second-hand goods to report user earnings to HM Revenue and Customs (HMRC). The policy’s purpose is to collect tax revenue on income from used goods sold on platforms such as eBay, Amazon, and Depop. Under the new legislation, sellers making over £1,000 per year will be considered self-employed and will need to file a return to the UK tax authority.