The F.T.C. is examining whether Twitter can protect user data and privacy, The Times reports. Though the agency had been looking at a former executive’s claims about inadequate security practices pre-Musk, it ramped up its inquiry into the company after he began the mass layoffs.
Twitter is still operating under a consent decree it reached with the F.T.C. that requires the company to keep detailed logs about how it handles sensitive data. Staying in compliance had involved hundreds of people; now, the company isn’t even paying for the software it used to keep track of its work.
And the European Union wants Mr. Musk to hire more content moderators. A wide-ranging E.U. law, the Digital Services Act, will come into effect next year and require internet companies to comply with rules around disinformation and content moderation. Mr. Musk has told the E.U. that Twitter will increasingly rely on artificial intelligence — but Thierry Breton, an E.U. commissioner, responded that he expected the company to add more human moderators to comply with the act, according to The Financial Times.
The Kanye losses pile up for Adidas
A year ago, Adidas had big aspirations for a new line of Yeezy-branded sneakers, including a $585 boot. On Wednesday, the German sportswear giant instead reported mounting losses from its failed partnership with the boots’ designer, Kanye West.
In reporting its year-end results, Adidas gave dismal odds of finding takers for its $1.3 billion stockpile of unsold Yeezy gear.
Adidas shares fell 2.3 percent at the opening bell in Frankfurt, underperforming the wider German market. Investors seemed unimpressed with the turnaround plan of its new C.E.O., Bjorn Gulden, which involves cutting the dividend, reducing inventory and shaking up management — the heads of global brands and global sales are out.
Gulden joined Adidas from Puma in January, inheriting the fallout from a messy breakup with West. In October, Ye, as West is now known, went on an antisemitic rant, forcing Adidas to cut ties. Last month, the company issued a profit warning, saying the split with West would lower operating profit by €500 million ($527 million).
