Business ethics news: CMA investigates Meta's terms, regulators warn on AI agents (31 October 2026)
The Competition and Markets Authority has opened a formal investigation into whether Meta's new business terms are unfair to news publishers. Four UK regulators said existing law already covers personal AI agents, Brussels accepted Temu's plan to fix a Digital Services Act breach, and the audit regulator fined the firm that audited a GFG Alliance company.
The CMA has opened a Competition Act investigation into Meta's terms for publishers and advertisers
On 30 October the Competition and Markets Authority opened a formal investigation into whether Meta is abusing a dominant position by imposing unfair trading conditions. The terms at issue would let Meta collect content from the websites of businesses and publishers that use its services and use it to build its own products, including its AI features, without those businesses having a choice over whether or how their content is used.
Meta had planned to bring the terms in on 30 October, pushed that back to 20 November after talks with the CMA, and on 28 October paused the rollout pending a consultation with industry groups. Complaints came from the News Media Association and Movement for an Open Web. The CMA is using its Competition Act 1998 powers because Meta has not been designated with strategic market status under the digital markets regime; the next set of designation proposals goes to the CMA Board in spring 2027.
No finding of a breach has been made. Separately, the CMA is asking Meta for information about its Meta One business subscription, after the Federation of Small Businesses raised concerns about charging small firms to post external links on Facebook and Instagram.
Sources: CMA press release, 30 October 2026, CMA case page.
The CMA, FCA, ICO and Ofcom say existing law already applies to personal AI agents
The four members of the Digital Regulation Cooperation Forum published a joint statement on 30 October on personal AI agents that buy things and deal with businesses on a user's behalf. Their central point: competition, consumer, data protection, online safety, financial services, payments and cyber security rules all apply already, and an agent's autonomy does not reduce the deploying organisation's responsibility to comply. The regulators say they "will not hesitate" to use their powers where they suspect breaches that harm consumers or businesses.
The statement lists the questions firms should be able to answer: how users know when an agent is acting for them, how authority to act is given, how personal data is used, how commercial interests behind its recommendations are disclosed, who is accountable for its decisions and how people get redress. The CMA added the statement to its guidance on complying with consumer law when using AI agents, which already tells businesses they are responsible if an agent they use does something illegal.
Sources: DRCF joint statement, 30 October 2026, CMA guidance, updated 30 October 2026.
The European Commission has accepted Temu's plan to fix its Digital Services Act breach
On 26 October the Commission accepted the action plan Temu submitted in August, following the €200 million fine issued in May 2026 for failing to assess the risk of illegal products spreading on its marketplace. Temu has committed to five measures, including a risk assessment tailored to its service, reliable metrics to test whether its mitigations work, and an analysis of how its recommender systems and seller manipulation may amplify illegal listings.
The European Board for Digital Services found the plan only partially adequate and short on detail, so the Commission has clarified what Temu must do. Temu has four months to implement the plan and must run an interim risk assessment covering a six-month period to 30 November 2026. An independent audit follows, with the report due to the Commission within four months of implementation.
Sources: European Commission, 26 October 2026, Commission Daily News, 26 October 2026.
Crypto exchange HTX has given High Court undertakings to stop promoting to UK consumers
The FCA announced on 29 October that Huobi Global S.A., which runs the HTX exchange, has settled the case the regulator brought in October 2025 for breaking UK financial promotion rules. Huobi Global has undertaken to the High Court not to knowingly communicate unlawful financial promotions under section 21 of the Financial Services and Markets Act 2000, covering its website, apps and social media.
HTX has left the UK market: UK consumers can no longer make deposits and new UK users cannot sign up. Settlement terms are confidential and involve no admission of liability. The FCA's enforcement director Steve Smart said being based overseas "does not put them beyond the reach of UK law".
Source: FCA, 29 October 2026.
The FRC has fined HW Fisher £140,000 over its audit of a GFG Alliance trading company
The Financial Reporting Council announced on 27 October a £140,000 fine and a severe reprimand for HW Fisher LLP over its audit of Liberty Commodities Limited for the year to 31 March 2020. Audit partner Simon Mott-Cowan was fined £17,500. Both figures include a 30% discount for admissions and early settlement. The FRC found serious breaches across seven areas, including going concern and revenue recognition, and said the auditors did not properly understand the company's supply chain finance arrangements with Greensill Capital and Wyelands Bank. It did not suggest the breaches were dishonest or that the accounts were misstated. Mr Mott-Cowan stopped auditing at the end of 2025.
Two days later, on 29 October, the FRC published revised ISA (UK) 250 and ISA (UK) 270, which set how auditors consider a client's non-compliance with laws and regulations, including the Economic Crime and Corporate Transparency Act 2023. They apply to audits of periods beginning on or after 15 December 2027.
Sources: FRC, 27 October 2026, FRC, 29 October 2026.
Budget 2026 targets tax avoidance promoters and persistent non-compliance by larger businesses
The Budget on 28 October promised a consultation "shortly" on measures against the promotion and use of tax avoidance, with Finance Bill 2026-27 amending the Promoters of Tax Avoidance Schemes rules. The government will also review how it deals with persistent non-compliance and egregious behaviour by a small minority of larger businesses, including through the Special Measures regime.
Other measures: changes next year to strengthen how HMRC publishes the details of deliberate tax defaulters; a consultation later this year on reforming offshore penalties; and mandatory software standards for till systems to tackle electronic sales suppression, with a technical consultation in summer 2027.
What this means for compliance and governance teams
If your business uses AI agents to deal with customers, treat their actions as your own for consumer and data protection purposes, and be ready to show who authorised them, what data they use and how customers get redress. Firms that publish content should watch the Meta case before accepting new platform terms on AI reuse. Audit committees with complex financing, such as supply chain finance, should check their auditors understand it; the revised ISA (UK) 250 will bring more questions on legal compliance from December 2027. Groups in HMRC's sights for avoidance or repeated non-compliance should expect consultations in the coming months.