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UK races towards under-16 social-media ban and tighter leash on AI chatbots

Ministers eye Australian-style curbs within months, vowing to close loopholes that expose children to risky AI and online harms

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UK: Britain is sprinting towards a social-media ban for under-16s and a clampdown on AI chatbots, as ministers scramble to get ahead of fast-moving digital risks to children.

An Australian-style prohibition on under-16s using social platforms could arrive as early as this year. At the same time, the government wants to shut a loophole that leaves some AI chatbots outside existing safety rules.

Keir Starmer’s government launched a consultation last month on banning social media for under-16s and is now working on legislative changes that could land within months of the consultation closing.

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The push comes amid a broader international shift. Spain, Greece and Slovenia are exploring similar bans after Australia became the first country to block social-media access for under-16s. Scrutiny of AI has intensified since Elon Musk’s flagship chatbot, Grok, was found to be generating non-consensual sexualised images.

Britain’s 2023 Online Safety Act is among the world’s toughest regimes, yet it does not cover one-to-one interactions with AI chatbots unless content is shared with other users. That gap, Liz Kendall said, will be closed.

“I am concerned about these AI chatbots… as is the prime minister, about the impact that’s having on children and young people,” Kendall told Times Radio. Some children, she said, were forming one-to-one relationships with AI systems “that were not designed with child safety in mind.”

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Proposals will be set out before June. Tech firms, Kendall said, would be responsible for ensuring their systems comply with British law.

Ministers are also consulting on automatic data-preservation orders when a child dies, allowing investigators to secure vital online evidence — a measure long sought by bereaved families. Other ideas include curbs on “stranger pairing” on gaming consoles and blocks on sending or receiving nude images. The changes would come as amendments to crime and child-protection laws now before parliament.

The child-safety drive is not without friction. Such rules can have knock-on effects for adults’ privacy and access to services, and have already stirred tensions with the United States over free speech and regulatory overreach.

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Some large pornography sites have chosen to block British users rather than conduct age checks. Those blocks are easily sidestepped with virtual private networks, which the government is considering restricting for minors.

Many parents and safety advocates favour a ban. Yet some child-protection groups fear it could push harmful behaviour into darker, less regulated corners of the internet or create a sharp cliff edge at 16. Ministers still need to define, in law, what counts as social media before any ban bites.

The direction of travel, though, is clear: faster rules, fewer loopholes, and a shrinking tolerance for digital wild west. For tech firms and teenagers alike, Britain’s online free ride looks set to end at speed.

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iWorld

Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group

Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer

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The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.

Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.

Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.

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Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.

The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.

UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.

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The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.

Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.

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