Facebook, Robinhood, Uber: Tech companies feel the heat from regulatory threats
February 19, 2021. Summarized by summa-bot.
Compression ratio: 23.9%. 1 min read.
FILE - In this Oct. 23, 2019, file photo, Facebook CEO Mark Zuckerberg testifies before a House Financial Services Committee hearing on Capitol Hill in Washington. For years, Facebook has been in a defensive crouch amid a slew of privacy scandals, antitrust lawsuits and charges that it was letting hate speech and extremism destroy democracy. Early Thursday, Feb. 18, 2021, though, it abruptly pivoted to take the offensive in Australia, where it lowered the boom on publishers and the government with a sudden decision to block news on its platform across the entire country. (AP Photo/Andrew Harnik, File)
How Facebook, Uber and Robinhood run their businesses is under threat around the world, a warning sign for investors who have been all too willing to ignore regulatory risks for fast-growing tech companies in recent years.
London (CNN Business)How Facebook, Uber and Robinhood run their businesses is under threat around the world, a warning sign for investors who have been all too willing to ignore regulatory risks for fast-growing tech companies in recent years.
Take Facebook (FB), which decided this week to block news on its platform in Australia after lawmakers proposed legislation that would force it to pay publishers for content.
The UK's top court dismissed an appeal by the company and said that drivers on the ride-sharing app should be classified as workers because the company sets fares and exercises significant control over them.
The decision could change how Uber does business in the United Kingdom, potentially forcing it to grant additional benefits to drivers including paid time off and a minimum wage.
The European Central Bank president told CNN Business' Richard Quest that her biggest fear isn't that the European Union will accumulate a mountain of debt, but that governments could "brutally" withdraw job guarantees and income support before the time is right.
Eye on G7: Her warning comes as G7 leaders gather Friday for a virtual meeting to discuss global vaccine distribution, which is expected to trigger a powerful global economic recovery later this year.
The latest: Company leaders expect fewer layoffs and further improvements in the business environment, according to a recent survey from the Conference Board, my CNN Business colleague Anneken Tappe reports.
"With the vaccine rollout underway in major economies, CEOs entered 2021 historically upbeat," Conference Board chief economist Dana Peterson said in a statement.