Your commercial news round-up: UK economic growth, Grok AI outrage, Labubu dolls investigation, sports streaming piracy

Reading time: four minutes

The UK economy delivered a surprise boost in November and Elon Musk’s platform X is under intense scrutiny after its AI tool Grok was linked to illegal content. Meanwhile, a major toy supplier for Pop Mart in China is under fire over alleged labour abuses and a new report reveals sports piracy in Britain has skyrocketed. Read on for LCN’s picks of this week’s top commercial stories!

• The UK economy has grown by 0.3% in November, exceeding forecasts of a 0.1% rise, according to the Office for National Statistics (ONS). Growth was driven by higher industrial output, particularly a rebound in car manufacturing, and an increase in services activity. Manufacturing output rose after production resumed at Jaguar Land Rover following a cyberattack, with motor vehicle output increasing by 25.5% during the month. The service industry’s output also grew, supported by higher activity in areas such as accounting and tax consultancy. The ONS said the economy grew by 0.1% in the three months to November compared with the previous period. Because monthly GDP figures can be volatile, the rolling three‑month measure is seen as a better guide to underlying growth. Chief economist at KPMG UK, Yael Selfin, said: “With the worst of the uncertainty behind businesses, we expect growth momentum to continue over the coming months."
   
• Elon Musk’s social media platform X faces mounting scrutiny in the UK after its AI tool, Grok, was reportedly used to create sexualised images of women and minors. The UK government has threatened a potential ban under the Online Safety Act (OSA), which allows Ofcom to impose “business disruption measures” – effectively blocking platforms that fail to comply with the law. Ofcom launched a formal investigation on Monday, citing concerns that X may have breached the OSA by failing to prevent illegal content, including intimate image abuse and underage sexual exploitation material. Ministers have warned they will strengthen laws if necessary, with Prime Minister Keir Starmer calling the situation “disgusting” and “shameful.” Polling showed that 58% of Britons support banning X if it doesn’t act.
  
  Amid growing backlash, X announced it will “geoblock” Grok’s ability to generate sexualised images of real people in countries where it is illegal, including the UK. The company pledged “zero tolerance for any forms of child sexual exploitation, nonconsensual nudity, and unwanted sexual content”, though it didn’t confirm whether similar restrictions apply to the standalone Grok app. While Ofcom welcomed the move, it said that “formal investigation remains ongoing”. The controversy has sparked global concern, with regulators in California and governments in Malaysia and Indonesia taking action. Meanwhile, advocacy groups have urged Apple and Google to remove Grok from app stores, as fears rise over AI misuse and online safety.
   
• US-based labour rights group China Labor Watch (CLW) has accused a Chinese factory producing viral Labubu dolls of exploiting workers. CLW claims its investigation into Shunjia Toys Co Ltd, a core supplier for Beijing-based Pop Mart, uncovered excessive overtime, unclear contracts, unpaid leave and inadequate safety training. The factory, located in Guangdong province, employs more than 4,500 workers and allegedly required staff to sign incomplete contracts and work illegal hours. Pop Mart told the BBC that it’s reviewing the allegations and pledged to enforce corrective measures if confirmed. The company said it conducts regular audits, including annual third-party inspections. CLW’s probe involved 51 interviews to discuss working conditions and no child labour was identified. The organisation has urged Pop Mart to compensate affected workers and ensure compliance with Chinese labour laws and international standards.
   
• Sports piracy in the UK has surged, with 3.6 billion illegal streams recorded in 2024/25, according to a new report by the Campaign for Fairer Gambling (CFG), up from 1.8 billion in 2022. CFG’s report revealed a strong link between piracy and unlicensed gambling, as 89% of illegal streams feature ads for black-market bookmakers. Unlicensed betting operators earned £379 million in the first half of 2025, capturing 9% of Britain’s £8.2 billion online gambling market. The report also argues that sports streaming is being deliberately used to take illegal gambling into the mainstream. Founder of online marketplace intelligence platform Yield Sec, Ismail Vali, said: “For the first time, illegal gambling’s focus upon two core audiences in Great Britain – the underage and self-excluded gamblers on the GamStop scheme – looks set to shift into mainstream audiences via the gateway of illegal streaming of sports events.”

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