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EU to require ChatGPT to disclose its sources
Proposed legislation in the European Union (EU) might require makers of artificial intelligence tools like ChatGPT to disclose copyrighted material used in building their systems. This obligation would empower content creators and publishers to seek a share of the earnings when their content is used in AI-generated material. Under the new proposal, AI developers must publish a” sufficiently detailed summary” of the copyrighted materials used. The proposal is just the beginning of AI regulation, as it doesn’t address the most fundamental issue of the debate, namely whether AI companies have a legal right to scrape internet content to feed their models.
Government
SEC requires more information about firms’ stock buybacks
The US Securities and Exchange Commission (SEC) has adopted a new rule that requires more transparency from public companies about share buybacks. Share buybacks can drive up the price of a stock, critics claim that this type of transaction can distort the market and encourage firms to invest in their shareholders rather than their operations. Under the new rule, companies are required to provide daily accounts of their buybacks during the previous quarter. This information would make it easier for analysts to compare the timing of buybacks with potential insider trades, or to identify whether the buybacks might have been intended to boost executive compensation or earnings per share. The SEC does not take a normative position on share buybacks, but its aim is rather to help investors gauge the intention behind certain transactions.
Canada cracks down on forced labor in supply chains
Canada’s House of Commons has passed a law (Bill S-211) that will require large companies to report on parts of their supply chains where there is a risk of the occurrence of forced labor. According to a member of Parliament the new legislation “will turn Canada from a laggard to a leader in the global fight against slavery,”. Some critics however have argued that the new law does not go far enough as companies might still be able to profit from forced labor. The law is set to take effect in January 2024.
Business
Carlsberg agrees to pay EUR 50 million in price-fixing case
Danish beer giant Carlsberg has settled with German authorities to pay a EUR 50 million fine after it was accused of forming a cartel more than a decade ago. Carlsberg continued to deny the charges but agreed to settle as the case “required an enormous amount of time and financial resources”, settling allowed the firm to focus on the future of the firm. In the long-running case, Carlsberg was accused of artificially inflating the prices of 24 beer brands.
First Republic Bank sold to JPMorgan
The First Republic Bank’s failure constitutes the second largest in US history as it becomes the third prominent bank failure to occur in March 2023. After its collapse, First Republic was seized by regulators and subsequently sold to JPMorgan, which will assume all its USD 92 billion deposits and most of its assets which include about USD 173 billion in loans and USD 30 billion in securities. All 84 of First Republic’s branches are reopening as JPMorgan branches and clients will have full access to their deposits. The trigger of First Republic’s collapse was a smartphone-enabled panic of depositors, however, the bank's problems were rooted in bad interest rate strategies and the bank had been on the verge of collapse for months.