Table of Contents
Ireland’s Data Protection Commission (DPC) has launched a formal investigation into X regarding its Grok AI feature, while Warner Brothers Discovery has issued a strict seven-day deadline to Paramount regarding a potential acquisition, signaling a pivotal week for both global tech regulation and media consolidation. These developments occur alongside significant updates from Apple regarding encrypted messaging and new security protocols within the European Parliament.
Key Points
- Regulatory Probe: X faces a DPC investigation over allegations that its Grok AI generated non-consensual sexual images, potentially violating GDPR.
- Merger Wars: Warner Brothers Discovery (WBD) is favoring an $82.7 billion merger with Netflix, despite a competitive counter-offer from Paramount backed by foreign funding.
- Apple Updates: iOS 26.4 beta is testing end-to-end encrypted RCS messaging, and Apple Podcasts is launching a video experience to compete with Spotify.
- Hardware Delays: Component shortages have delayed Valve's upcoming hardware lineup to the first half of 2026.
X Faces Scrutiny Over Generative AI Risks
The Data Protection Commission (DPC) in Ireland has opened a formal inquiry into X (formerly Twitter) to assess the compliance of its AI chatbot, Grok, with General Data Protection Regulation (GDPR) obligations. The investigation centers on allegations that the tool has been used to generate millions of non-consensual sexual images, including content depicting minors.
This probe by the DPC complements an ongoing investigation by the European Commission regarding potential violations of the Digital Services Act (DSA). Regulators are scrutinizing X's failure to mitigate the risks associated with Grok and the platform's inability to stem the spread of illegal content, despite company assurances that safeguards were in place to prevent the manipulation of real people's likenesses.
Warner Brothers Discovery Issues Deadline in Acquisition Battle
The high-stakes negotiation for the future of Warner Brothers Discovery has intensified. WBD has granted Paramount a seven-day window to submit a "best and final" acquisition offer. This ultimatum comes despite WBD public leadership signaling a strong preference for a merger with Netflix, a deal valued at $82.7 billion.
Paramount’s current bid includes an offer of $31 per share and a commitment to cover the $2.8 billion termination fee WBD would owe Netflix if they pivot partners. However, the Netflix merger is viewed by the WBD board as offering superior regulatory certainty and shareholder value.
Complicating Paramount's position, Netflix has raised national security concerns regarding the foreign capital backing Paramount's bid, specifically pointing to the involvement of Saudi Arabia’s Public Investment Fund.
The chair of Warner Brothers Discovery’s board reaffirmed the Netflix merger as the better option for shareholders due to its value, regulatory certainty, and downside protection ahead of the March 20th shareholder vote.
Apple Tests Encrypted RCS and Expands Video Strategy
Apple has begun internal testing of end-to-end encrypted (E2EE) Rich Communication Services (RCS) messaging within the iOS 26.4 developer beta. This initiative aims to establish security parity between iMessage and cross-platform communication with Android devices, replacing legacy SMS and MMS protocols.
Currently, the testing is restricted to communication between Apple devices, and the critical cross-platform encryption functionality remains inactive. Apple has clarified that the full feature set will not be available in the public release of iOS 26.4 but is slated for a future update.
Simultaneously, Apple Podcasts is preparing to launch a comprehensive video podcast experience this spring. With data indicating that 37% of users watch video podcasts monthly, the update will utilize the HLS protocol to allow seamless switching between audio and video, alongside picture-in-picture capabilities. The platform will also introduce dynamic video ad insertion, for which Apple will charge ad networks an impression-based fee.
Policy Shifts and Hardware Constraints
The European Parliament has enacted a ban on built-in AI features for staff and lawmaker devices. An internal memo cited the IT department's inability to guarantee the safety of sensitive legislative data when using cloud-based writing assistants and summarization tools.
In the hardware sector, Valve is grappling with supply chain issues. The company reported intermittent stock shortages of the Steam Deck OLED in the US and other regions, attributed to a scarcity of memory and storage components. Consequently, the launch of new hardware, including the Steam Machine and Steam Controller, has been pushed to the first half of 2026.
What's Next
Shareholders are looking toward March 20 for the decisive vote on the Warner Brothers Discovery merger, a deal that could reshape the global streaming landscape. Meanwhile, the tech industry awaits the outcome of the DPC’s investigation into X, which may set new precedents for liability regarding AI-generated content under European law.
