Market Regulation

Business • Markets
YouTuber "Roaring Kitty" faces lawsuit after GameStop hype
YouTuber "Roaring Kitty" faces lawsuit after GameStop hype
Credit: Courtesy of Twitter

YouTuber "Roaring Kitty", whose real name is Keith Gill, is being sued in the US for his involvement in the GameStop stock hype. A class action lawsuit accuses Gill of violating stock laws and causing "huge losses" to investors, according to the statement of claim filed in Massachusetts and dated Tuesday.

The lawsuit accuses Gill of actually being an expert in securities trading who manipulated the market to profit himself. The YouTuber concealed his expertise and misled private investors on social media to buy shares.

Following the fabulous ups and downs of GameStop's share price, the YouTuber is due to testify alongside hedge fund managers and company CEOs before a US House of Representatives committee on Thursday. Gill released a written version of his planned testimony on Wednesday. "The notion that I could have used social media to promote GameStop stock to uninformed investors is absurd," he wrote. "I made it sufficiently clear that my channel was for educational purposes only and that my aggressive investment style was probably not appropriate for most people."

Business • Markets
China pushes Alibaba founder Jack Ma to break up his fintech empire
Jack Ma
Jack Ma Credit: JD Lasica (Creative Commons Attribution ShareAlike 2.0)

Chinese regulators want Jack Ma's Ant Group to go back to its digital payment roots, stating Ant's corporate governance was "not sound". The Ant Group started as Alipay, which became China’s largest digital payment platform, though it eventually expanded to offer investment and savings accounts and lending, insurance and wealth management services.

The latest salvo in Beijing's battle against Ma - who had been feted as China's greatest modern-day entrepreneur until he started speaking out against strict regulations - wiped 8% off the value of Alibaba's share price in Hong Kong trading on Monday.

In November, Chinese regulators blocked Ant’s $37 billion IPO just two days before dealing was due to begin in Shanghai and Hong Kong.

Regional News • Europe • European Union
European Union drafts Digital Services Act to regulate large technology companies
European Union drafts Digital Services Act to regulate large technology companies
Credit: Corentin Béchade / Wikimedia Commons (Creative Commons Attribution ShareAlike 4.0)

The European Commission is working on a new legislative package in order to regulate major online platforms such as Facebook, Amazon, Google, Apple, Microsoft, and others. According to an internal paper, one of the goals is to prevent "unfair practices". One rule could specify that the platforms would "not be allowed to pre-install their own applications exclusively" such as installing mobile apps on smartphones and preventing users to uninstall them.

In addition, there could be new restrictions on the usage of data generated by their services for their own commercial activities. This kind of data could only be used if made "accessible to other commercial users".

Regional News • Americas • United States
US House Antitrust Subcommittee will question tech CEOs over dominance of online platform
Facebook CEO Mark Zuckerberg
Facebook CEO Mark Zuckerberg Credit: Anthony Quintano (Creative Commons Attribution 2.0)

The chief executives Jeff Bezos (Amazon), Mark Zuckerberg (Facebook), Tim Cook (Facebook) and Sundar Pichai (Google) will be questioned today by the United States House Antitrust Subcommittee that currently investigates the into market dominance of online platforms.

Rep. David Cicilline, chairman of the subcommittee has stated that "these platforms have been allowed to run wild and free from really any constraints" adding that the committee has to clarify "what the impacts are of the lack of competition in the digital marketplace".