Your commercial news round-up: Warner Bros, X, digital assets, chocolate bars

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Have you been staying up to date with the commercial news? Netflix and Paramount are competing to acquire Warner Bros, and Netflix is facing a lawsuit from consumers over competition concerns. Meanwhile, X has blocked the European Commission from advertising on the platform, the new Property Act is set to make changes to laws relating to digital assets, and recipe changes mean that Toffee Crisp and Blue Riband bars can no longer be referred to as ‘chocolate bars’.

• The battle to acquire Warner Bros continued this week, with both Netflix and Paramount in the race. On Friday 5 December, it was announced that Netflix was buying the studio. It made a $82.7 billion bid for the company, not including its traditional television assets, such as CNN and the Discovery Channel. Paramount made a hostile bid on Monday 8 December. Paramount valued Warner Bros at $108.4 billion, which the studio said it’d “carefully review and consider”. Paramount’s offer is backed by David Ellison and his father Larry Ellison, chief technology officer of software company Oracle. Both David and Larry Ellison are friendly with the Trump administration, according to the Guardian, which has previously signalled its support of the purchase. The regulatory filing also showed that the Ellisons’ bid was backed by outside funders, such as Affinity Partners – an investment fund founded by Trump’s son-in-law Jared Kushner.
  
  Paramount’s hostile bid wasn’t the only hurdle Netflix faced on Monday. It also received a lawsuit from a subscriber that said the proposed deal threatened to reduce competition in the US video subscription market. US federal antitrust laws allow consumers to sue over mergers and acquisitions. The lawsuit said that the deal would eliminate one of Netflix’s biggest rivals and give it control over a number of major franchises, such as Harry Potter, DC and Game of Thrones. Netflix responded: “We believe this suit is meritless and is merely an attempt by the plaintiffs’ bar to leverage all the attention on the deal.”

• X has blocked the European Commission from displaying adverts on its platform after it fined X £105 million over its blue tick badges. X representative Nikita Bier accused the EU regulator of “taking advantage” of “an exploit” in the advertising system and explained that its advertising account has been terminated. A European Commission spokesperson said it uses all social media “in good faith”. Last week it said X’s blue tick system was “deceptive” and wasn’t “meaningfully verifying users”, which could lead to “manipulation by malicious actors”. It also claimed that X wasn’t providing enough transparency around its adverts. X has 60 days to respond to the commission.

• The new Property Act is set to change the digital asset landscape by recognising digital assets as personal property. Owners of cryptocurrency and cryptographic tokens for digital assets, including videos, photos, websites, music and digital art, can now officially include these in their estate. The new law, which follows recommendations from the Law Society of England and Wales, now means that digital assets can be:
  • legally transferred;
  • used as collateral for loans or mortgages;
  • included under property law; and
  • protected, allowing owners to take legal action against those who steal them.       

Law Society CEO Ian Jeffery said: “By clearly defining digital assets as personal property, the new law helps courts handle relevant disputes and strengthens legal protection. It also stands to reinforce trust in digital markets, drives innovation and positions the UK as a leader in the digital industry. This important regulation creates a safer environment for people and businesses that can lead to more growth and more jobs.”

• Toffee Crisp and Blue Riband bars can no longer be referred to as ‘chocolate bars’ following a recipe change. Products need to contain at least 20% cocoa solids and 20% milk solids in their recipes to be considered chocolate. As ingredients, such as cocoa and butter, have grown more expensive, many companies have changed ingredients and decreased serving sizes. Toffee Crisp and Blue Riband owner Nestlé has changed the recipe to use a cheaper vegetable fat due to higher input costs. It now describes products as “encased in a smooth milk chocolate flavour coating". Other brands, such as McVitie's Penguin and Club bars, have switched to be labelled as "chocolate flavour". Nestlé stated that it has no plans to alter recipes of other products.

Law Society CEO Ian Jeffery said: “By clearly defining digital assets as personal property, the new law helps courts handle relevant disputes and strengthens legal protection. It also stands to reinforce trust in digital markets, drives innovation and positions the UK as a leader in the digital industry. This important regulation creates a safer environment for people and businesses that can lead to more growth and more jobs.”

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