Your commercial news round-up: AI Act, Barbie dolls, Moana 2, lab-grown meat

Reading time: four minutes

The EU is pressing ahead with its AI Act, despite warnings from US President Donald Trump about potential retaliation. Trump's presidency is also expected to affect the prices of Mattel’s Barbie dolls as the threat of tariffs on imports looms. Elsewhere, Walt Disney makes significant profit following the success of Moana 2; and in the UK, a new dog treat made from lab-grown meat marks a significant step in sustainable pet food.

• The EU is moving forward with enforcing its AI Act, despite warnings from US President Donald Trump about potential retaliation against the EU's treatment of US tech companies. The EU’s AI Act was passed in 2023 and is said to be the most comprehensive regulatory framework for AI globally. It includes bans on certain applications, such as scraping the internet for facial recognition databases, which came into force on Sunday 2 February. The European Commission has issued guidance to “explain how the prohibitions will apply” and help companies comply with new rules, such as social scoring and emotion recognition. In response to fines on US companies, Trump has threatened to target Brussels and criticised the EU’s efforts to regulate AI. The co-chair of Cooley (UK) LLP’s global cyber, data and privacy practice, Patrick Van, said: “There is definitely a worry in Brussels that the new US president will raise pressure on the EU around the AI Act to ensure that US companies don’t have to deal with too much red tape, or potentially even fines.” The AI Act requires companies with ‘high-risk’ AI systems to be transparent about their AI models; non-compliance could result in hefty fines and companies being banned from the EU.
   
• The impact of the US President’s inauguration extends further, as multinational top company Mattel said it might increase its prices following Trump’s tariffs. The 10% tariffs on Chinese imports are expected to directly affect Mattel, the toy-making giant behind Barbie and Hot Wheels, as nearly 40% of its production is based in China. In its quarterly report, Mattel said that it plans to take “mitigating actions” as consumer and business groups believe that the new US tariffs may also disrupt supply chain and lead to higher prices.
   
• Elsewhere, Walt Disney has exceeded Wall Street's quarterly earnings estimates, driven by the box office success of Moana 2 and higher streaming profits. Despite a decline in domestic theme park revenue due to hurricanes Helene and Milton in Florida, Disney's revenue rose 5% to $24.69 billion and operating income increased by 31% to $5.1 billion. The CEO of Disney, Bob Iger, said “the quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth”. In addition, Disney’s Entertainment unit saw its income nearly double to $1.7 billion as Moana 2 surpassed a whopping $1billion in box office proceeds – the fourth Walt Disney Animation film to ever reach this milestone. However, traditional television income decreased by 11% to $1.1 billion and Disney+ subscribers dropped by 1% to 124.6 million.
   
• In the UK market, pet lovers can expect to find a “world first” dog treat called Chick Bites that’s made from lab-grown meat. The treat, manufactured by Meatly and sold at Pets at Home, combines plant-based ingredients with cultivated meat grown from a single sample of cells taken from one chicken egg. Meatly said the meat is “just as tasty and nutritious as traditional chicken breast”, providing the necessary nutrition for pet health without need of raising and slaughtering animals. This innovation gained significant recognition in July when the UK became the first European country to endorse cultivated meat for pet food, following the approval of Meatly's lab-grown chicken by the Department for Environment, Food and Rural Affairs and the Animal and Plant Health Agency. Pets at Home, which invested in Meatly, has launched a limited release of Chick Bites in Brentford and London, with plans to expand production in the next three to five years. Meatly CEO Owen Ensor said: “Just two years ago this felt like a moon shot. Today we take off. It’s a giant leap forward, toward a significant market for meat which is healthy, sustainable and kind to our planet and other animals.” Meanwhile, Damien Clarkson, CEO of The Pack – provider of the plant-based ingredients for Meatly – said: “Cultivated meat offers a tasty, low-carbon and healthy protein source which has the potential to eliminate farmed animals from the pet food industry.”

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