Media
GOP lawmakers push bills to allow social media ‘censorship’ lawsuits – Global News
Republican state lawmakers are pushing for social media giants to face costly lawsuits for policing content on their websites, taking aim at a federal law that prevents internet companies from being sued for removing posts.
GOP politicians in roughly two dozen states have introduced bills that would allow for civil lawsuits against platforms for what they call the “censorship” of posts. Many protest the deletion of political and religious statements, according to the National Conference of State Legislatures. Democrats, who also have called for greater scrutiny of big tech, are sponsoring the same measures in at least two states.
The federal liability shield has long been a target of former President Donald Trump and other Republicans, whose complaints about Silicon Valley stifling conservative viewpoints were amplified when the companies cracked down on misleading posts about the 2020 election.
Twitter and Facebook, which are often criticized for opaque policing policies, took the additional step of silencing Trump on their platforms after the Jan. 6 insurrection at the U.S. Capitol. Twitter has banned him, while a semi-independent panel is reviewing Facebook’s indefinite suspension of his account and considering whether to reinstate access.
Experts argue the legislative proposals are doomed to fail while the federal law, Section 230 of the Communications Decency Act, is in place. They said state lawmakers are wading into unconstitutional territory by trying to interfere with the editorial policies of private companies.
Len Niehoff, a professor at the University of Michigan Law School, described the idea as a “constitutional non-starter.”
“If an online platform wants to have a policy that it will delete certain kinds of tweets, delete certain kinds of users, forbid certain kinds of content, that is in the exercise of their right as a information distributer,” he said. “And the idea that you would create a cause of action that would allow people to sue when that happens is deeply problematic under the First Amendment.”
The bills vary slightly but many allow for civil lawsuits if a social media user is censored over posts having to do with politics or religion, with some proposals allowing for damages of $75,000 for each blocked post. They would apply to companies with millions of users and carve out exemptions for posts that call for violence, entice criminal acts or other similar conduct.
The sponsor of Oklahoma’s version, Republican state Sen. Rob Standridge, said social media posts are being unjustly censored and that people should have a way to challenge the platforms’ actions given their powerful place in American discourse. His bill passed committee in late February on a 5-3 vote, with Democrats opposed.
“This just gives citizens recourse,” he said, adding that the companies “can’t abuse that immunity” given to them through federal law.
Part of a broad, 1996 federal law on telecoms, Section 230 generally exempts internet companies from being sued over what users post on their sites. The statute, which was meant to promote growth of the internet, exempts websites from being sued for removing content deemed to be “obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable” as long as the companies are acting in “good faith.”
As the power of social media has grown, so has the prospect of government regulation. Several congressional hearings have been held on content moderation, sometimes with Silicon Valley CEOs called to testify. Republicans, and some Democrats, have argued that the companies should lose their liability shield or that Section 230 should be updated to make the companies meet certain criteria before receiving the legal protection.
Twitter and Facebook also have been hounded over what critics have described as sluggish, after-the-fact account suspensions or post takedowns, with liberals complaining they have given too much latitude to conservatives and hate groups.
Trump railed against Section 230 throughout his term in office, well before Twitter and Facebook blocked his access to their platforms after the assault on the Capitol. Last May, he signed a largely symbolic executive order that directed the executive branch to ask independent rule-making agencies whether new regulations could be placed on the companies.
“All of these tech monopolies are going to abuse their power and interfere in our elections, and it has to be stopped,” he told supporters at the Capitol hours before the riot.
Antigone Davis, global head of safety for Facebook, said these kinds of proposals would make it harder for the site to remove posts involving hate speech, sexualized photos of minors and other harmful content.
“We will continue advocating for updated rules for the internet, including reforms to federal law that protect free expression while allowing platforms like ours to remove content that threatens the safety and security of people across the United States,” she said.
In a statement, Twitter said: “We enforce the Twitter rules judiciously and impartially for everyone on our service – regardless of ideology or political affiliation – and our policies help us to protect the diversity and health of the public conversation.”
Researchers have not found widespread evidence that social media companies are biased against conservative news, posts or materials.
In a February report, New York University’s Stern Center for Business and Human Rights called the accusations political disinformation spread by Republicans. The report recommended that social media sites give clear reasoning when they take action against material on their platforms.
“Greater transparency — such as that which Twitter and Facebook offered when they took action against President Trump in January — would help to defuse claims of political bias, while clarifying the boundaries of acceptable user conduct,” the report read.
While the federal law is in place, the state proposals mostly amount to political posturing, said Darrell West, vice president of governance studies at the Brookings Institution, a public policy group.
“This is red meat for the base. It’s a way to show conservatives they don’t like being pushed around,” he said. “They’ve seen Trump get kicked off Facebook and Twitter, and so this is a way to tell Republican voters this is unfair and Republicans are fighting for them.”
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Izaguirre reported from Lindenhurst, New York
© 2021 The Canadian Press
Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.
Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.
Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.
Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.
Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.
Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.
Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.
As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.
Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.
Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”
In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.
The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”
This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.
Media
Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition
Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.
One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.
However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.
In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”
Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.
For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”
The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.
Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.
Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.
Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”
Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.
Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.
As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.
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