Musk's xAI Sparks New EU Scrutiny Ahead of Potential X Penalty
Elon Musk's $33 billion xAI buyout of social media platform X has sparked new scrutiny from the European Union as regulators size up a penalty under the Digital Services Act.
The European Commission recently circulated fresh questions to X, probing the company's corporate structure following the acquisition of the social media company by xAI, according to people familiar with the matter. The inquiry reflects concern that the March deal — which valued xAI at $80 billion and effectively brought X under its control — could influence the scale of any potential fine, said the people, asking not to be named discussing non-public information.
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Yahoo
17 minutes ago
- Yahoo
Will commercial VRPs transform B2B payments in the UK?
Adflex has been at the forefront of the B2B fintech revolution since its launch in 2001. It is known for its commitment to innovation and helping companies unlock the potential of digital payments. It covers a range of technologies including travel data, B2B procurement, B2C payments, supplier on-boarding, BACS, SEPA, ACH and hybrid card/BACS payment systems. Pat Bermingham has been CEO at Adflex since the firm launched and is ideally placed to discuss the potential for B2B payments to catch up with their B2C counterparts. He argus that corporate buyers will soon expect the same simplicity as they get when buying items in their personal lives. Take more nuanced services like Variable Recurring Payments (VRP). VRPs are simply an evolution of the current direct debit scheme. They allow a business to make a series of payments ahead of time to better forecast spend and facilitate more informed decisions. One of the most common uses for VRPs in the UK is 'sweeping'. It was back in Autumn last year that the Competition and Markets Authority (CMA) announced that all nine major banks under its remit had now implemented key open banking services, which included Variable Recurring Payments (VRPs) for 'sweeping'. Sweeping lets banking customers set up automated transfers between their bank accounts, based on pre-defined instructions. This might be transferring money from a current account to a savings account to access better interest rates or moving money to avoid going into an unarranged overdraft. Implementing sweeping was for sure an important milestone in the roll out of VRPs, but its impact hasn't been transformative. For VRPs to reach the levels of adoption that many analyst houses are predicting, more use cases need to be rolled out beyond just sweeping, and without stating the obvious, the roll outs need to go well. The good news is that this year, the Financial Conduct Authority (FCA) is overseeing new implementations of Commercial VRPs (cVRPs). A 'standard' VRP allows users to move money between their own accounts. A cVRP uses the same functionality as a VRP, but for consumer to businesses (C2B), or business to business (B2B) payments. You might be thinking, 'but isn't that very similar to Direct Debit?'. In some ways, yes: both allow users to set up automated, regular payments. However, cVRPs also enable automatic adjustments to a payment, without needing to take any manual action, so long as they're within the initial terms agreed. Take a monthly subscription as an example, such as an Audible subscription. With cVRPs, I could set up a term for my Audible subscription that stops payment being taken if my bank account is overdrawn. Or, Audible could in theory offer varying subscription rates based on how many books I actually listen to during a month, scaling up or down automatically based on my usage. Direct Debit cannot do these things. As more and more businesses switch to monthly subscription models for payments, VRPs and cVRPs are far better suited for modern payment behaviours. As I briefly mentioned earlier, the FCA recently assumed ownership of regulatory oversight for open banking in the UK, and so will be responsible for the upcoming cVRP rollouts. 'Phase 1' of this roll-out will include 'lower-risk' cVRP use cases, such as local and central government payments, utility payments and charity donations. You can expect to see these rollouts begin from Q3 this year. On 9 April 2025, Open Banking Limited (OBL) published the Commercial Model for this 'Phase 1' roll out and is currently asking for feedback on the proposed model from industry stakeholders. The deadline for sharing feedback is 16 May 2025. A cVRP multilateral agreement (MLA) is also in the final stages of development, designed to enable easier market access for participants and to provide clarity on the required functionality, pricing, dispute resolution and liability of cVRPs. This rollout is undoubtedly a significant and critical milestone for VRPs. If it goes well, then I expect we'll start to see cVRPs in loads of different C2B payment scenarios. There is also huge potential for cVRPs in the trillion-dollar B2B payment space, where we could witness the most concrete success story in the open banking era so far. In a word: yes. Many businesses today are still spending far too much time managing payments. I've spoken to multiple finance departments that spend up to one working week every month managing payments! That's staggering to me when it simply doesn't have to be like this. cVRPs are one digital solution that could open the door to huge time savings. In the B2B space, cVRPs enable a buyer to set up several payments in one go, reducing administrative overhead. cVRPs enable you to flex the timing and amount of a recurring payment based on the level of service delivered, giving greater control and power to the buyer, while facilitating real-time settlement. This can result in healthier cashflow and better liquidity for businesses. cVRPs also offer better visibility of incoming and outgoing payments compared to manual solutions, enabling businesses to operate with confidence, reinvesting and growing their operations in a sustainable and measured way. A big attraction for businesses will undoubtedly be that, as an A2A payment process, cVRPs also bypass card schemes, potentially avoiding interchange fees. This would benefit businesses operating at scale, or SMEs operating with tight margins. cVRPs also boost payment security, employing Strong Customer Authentication (SCA) – a requirement of the Second Payment Services Directive (PSD2) – at the start of the payment process, verifying identity before any funds are transferred, enhancing convenience and reducing the risk of fraud. Both yes and no. By lowering administrative demands on recurring invoices, such as payments for regular stock, IT subscriptions or licenses, or payments to the supply chain and subcontractors, cVRPs will be extremely beneficial to many firms. But despite the benefits I just outline, a key difficulty cVRPs face is that other payment methods, like commercial cards, are already woven into business payment systems, as well as in the wallets of commercial cardholders, who stand to gain from attractive reward programs. B2B transactions can be complex, requiring multiple layers of authorisation that VRPs aren't equipped to handle. Commercial cards enable tracking tools and extended payment terms that can be preferable to many business buyers. So, I believe cVRPs will likely complement, not replace, commercial (or indeed, virtual) cards. They are well-suited to recurring invoices, for regular, predictable supplier payments. But more needs to be done before we can reach this point: better technical integration, more regulatory oversight, closer collaboration between banks, TPPs (third-party providers), and learning from the lower-risk rollouts taking place this year. Cards will remain dominant for big-ticket transactions, but if managed well, cVRPs could help lighten the load, managing regular, flexible payments and encouraging prompt payment, preferred supplier status and repeat business. "Will commercial VRPs transform B2B payments in the UK?" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
22 minutes ago
- Yahoo
FleetCheck calls for UK to match EU hydrogen station targets
FleetCheck is urging the UK Government to align with European Union (EU) targets to establish a hydrogen filling station nearly every 200km on major roads by 2030. According to the fleet software specialist, this aims to maximise zero-emission fuel options for vehicle operators, addressing infrastructure gaps that hinder hydrogen adoption. FleetCheck CEO Peter Golding highlighted the issue at a recent hydrogen summit, noting BMW's reluctance to introduce its new fuel cell model to the UK due to inadequate infrastructure. He said: 'We are in a situation where an almost complete absence of infrastructure means we are in danger of being left behind when it comes to hydrogen, even though there seems to be general agreement among fleets that it has a definite role to play in the future.' Golding explained that Hydrogen is seen as a promising option for commercial vehicle operators, where battery electric vehicle adoption faces challenges related to range and payload. Electric van adoption has been slower than anticipated, with operational issues persisting for some fleets. Vauxhall's new hydrogen van, offering a range of approximately 400km and five-minute refuelling, presents a viable zero-emission alternative. However, the lack of refuelling stations limits its practicality unless fleets can afford to bunker fuel. Golding emphasised the need for a balanced government approach promoting diverse zero-emission fuel options. He stated: 'It seems obvious to operators that some fuel choices are more suitable for certain applications, but the UK Government approach appears to be almost entirely centred on battery electric vehicles, simply because they are available here and now. Following recent amendments to the ZEV Mandate, which grant the motor industry additional flexibility, the hydrogen sector stands to gain, potentially attracting investment in infrastructure development. Golding concluded: 'UK fleets should be calling for this to happen." "FleetCheck calls for UK to match EU hydrogen station targets" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
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Can the UK Afford to Defend Itself Anymore?
At the North Atlantic Treaty Organization summit scheduled for later this month, alliance members are expected to adopt a new defense spending target totaling as much as 5% of each nation's gross domestic product, an historic acknowledgement that a new Cold War has arrived, and that a recalcitrant Donald Trump could one day leave Europe to the mercies of a revanchist Vladimir Putin. Indeed, NATO's sprint toward re-militarization comes after more than three years of Russian war that's claimed tens of thousands of Ukrainian lives. Unable to rely on America given Trump's expressions of warmth for Putin and coolness to allies, many European governments see shifting to a war-footing as arguably a matter of long-term survival. The short-term question, however, is how to pay for it. On this Bloomberg Originals mini-documentary, we explore this brutal conundrum as it is currently faced by one of NATO's key powers: the UK. In 2010, the UK had a relatively small military of about 100,000 personnel. In the 15 years since, that number has fallen by tens of thousands. The Labour government is now struggling to make up for decades of underinvestment. Prime Minister Keir Starmer has pledged to spend 2.6% of GDP on defense by 2027, which falls short of the 3.5% goal proposed by NATO Secretary General Mark Rutte and the soon-to-be 5% target. The British military is currently at its smallest size since the Napoleonic era, and reversing course would require sustained investment and major sacrifices. Given the delicate nature of the UK's finances and the bond markets, it may not even be possible.
