Twitter Cannot Hide from EU Rules after Exit from Code, Breton Says

FILED - 26 April 2022, Bavaria, Kempten: The logo of Twitter is seen on the display of a laptop. Photo: Karl-Josef Hildenbrand/Deutsche Presse-Agentur GmbH/dpa
FILED - 26 April 2022, Bavaria, Kempten: The logo of Twitter is seen on the display of a laptop. Photo: Karl-Josef Hildenbrand/Deutsche Presse-Agentur GmbH/dpa
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Twitter Cannot Hide from EU Rules after Exit from Code, Breton Says

FILED - 26 April 2022, Bavaria, Kempten: The logo of Twitter is seen on the display of a laptop. Photo: Karl-Josef Hildenbrand/Deutsche Presse-Agentur GmbH/dpa
FILED - 26 April 2022, Bavaria, Kempten: The logo of Twitter is seen on the display of a laptop. Photo: Karl-Josef Hildenbrand/Deutsche Presse-Agentur GmbH/dpa

Twitter cannot run away from its obligations even after quitting a voluntary EU code of practice to tackle disinformation, EU industry chief Thierry Breton warned the company late on Friday.

Companies which signed up to the code are required to provide regular progress reports with data on how much advertising revenue they had averted from disinformation actors.

They also have to provide information on the number or value of political advertisements accepted or rejected and instances of manipulative behaviors detected.

"Twitter leaves EU voluntary code of practice against disinformation. But obligations remain. You can run but you can't hide," Breton said in a tweet.

"Beyond voluntary commitments, fighting disinformation will be legal obligation under DSA as of August 25. Our teams will be ready for enforcement,” Reuters quoted him as saying.

Since Twitter was acquired by billionaire Elon Musk for $44 billion last October, the company has cut thousands of jobs and made numerous changes.

The Digital Services Act (DSA) obliges Twitter, Google, Meta Platforms Inc, Microsoft Corp, Alibaba's AliExpress and five other large online platforms to do more to tackle illegal online content.

Companies face fines of as much as 6% of their global turnover for violations.

Twitter, which no longer has a public relations department, responded to an emailed request for comment with a poop emoji.



Intel Shares Fall as Dour Forecasts Overshadow CEO’s Turnaround Promises

The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
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Intel Shares Fall as Dour Forecasts Overshadow CEO’s Turnaround Promises

The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)

Intel's shares fell more than 8% on Friday as the company's weak revenue and profit forecasts overshadowed new CEO Lip-Bu Tan's strategy to revitalize the embattled chipmaker.

Years of bad decisions have left the struggling American chipmaking icon trailing in the lucrative artificial intelligence industry, while a raging Sino-US trade war casts doubt on near-term demand for its PC processors.

Tan on Thursday gave glimpses of his plans to reanimate Intel's culture of innovation by focusing on core engineering, stripping away unnecessary administrative work and cutting workforce.

"Intel is so huge that shifting its course is like turning a battleship – it cannot be done on a dime," Evercore ISI analysts said.

Tan did not provide much detail on how he will restore Intel's leadership position in manufacturing, nor on his plans to attract more external customers to the company's foundry, J.P.Morgan analysts said.

Tan remains focused on the contract manufacturing business and has recently met rival TSMC'S CEO to discuss how the two companies could collaborate.

Executives said first-quarter sales were boosted by customers stockpiling chips as growing tariff tensions between the US and China have made buyers wary of future purchases.

Intel could also stand to benefit if China introduces certain exemptions on US imports given the company's large presence in the Asian country, Ben Barringer, global technology analyst at Quilter Cheviot, said.

AI STRATEGY IN QUESTION

Tan's comments about sharpening Intel's existing products to best suit emerging AI trends have sparked questions on how the company plans to get ahead in the booming artificial intelligence sector and challenge market leader Nvidia.

"Intel needs to streamline fast – they have a lot of investments to make to catch up in AI," Stifel analyst Ruben Roy said.

Historically, Intel has relied on buying startups to further its AI ambitions. Other than Mobileye which Intel spun out a few years ago, the other deals didn't help the company gain much traction.

"Intel should have always had its own internal solution, but it missed the boat and tried to acquire its way into AI," Anshel Sag, principal analyst at Moor Insights & Strategy, said.

One of Intel's biggest missteps was failing to capitalize on the booming demand for AI chips, allowing Nvidia to dominate the market.

Intel now faces an uphill battle in challenging AI heavyweights as it lacks the same level of GPU intellectual property, which is essential for AI workloads, Barringer added.

The company's stock has gained 7.2% so far this year, outperforming Nvidia and Advanced Micro Devices, which have fallen nearly 20% each.

Intel, however, trades at a higher 12-month forward price-to-earnings ratio of 31.37 versus 22.70 for Nvidia and 19.24 for AMD.