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MAGA world, GOP unite on social-media bias after Hunter Biden story – POLITICO

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MAGA world is uniting with mainstream conservatives to whip up a frenzy over social-media bias in the final weeks of the election, convinced that the handling of a New York Post story about Hunter Biden has presented a validating example of years-old MAGA complaints.

Twitter and Facebook’s attempts to limit sharing of the Post story, citing policies meant to throttle the distribution of hacked materials and fact-challenged articles, is being used as proof positive in MAGA world that social media firms have a liberal agenda, and are using whatever means necessary to censor conservatives and protect liberals. And Republicans across the ideological spectrum are agreeing.

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The incident has fueled Republican plans to vote on subpoenas that would force testimony from the CEOs of both Twitter and Facebook on the issue. That hearing would come on top of another one already planned for next Wednesday, when Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg will face a grilling over liability protections the tech industry enjoys for content posted on their platforms. Other Republican lawmakers, including House Minority Leader Kevin McCarthy, have signaled shifts in how they wanted to regulate social-media platforms. And at the White House, chief of staff Mark Meadows has threatened to sue the two companies over the issue.

The flurry of activity caps a summer of anti-Big Tech maneuvering among conservatives, from anger over Twitter’s decision to post disclaimers on President Donald Trump’s tweets, to Attorney General Bill Barr’s rush to file an antitrust case against Google just two weeks before the election.

But now, in a matter of days, the handling of a single New York Post story has pushed long-simmering MAGA complaints about social-media bias to the top of Republicans’ talking points.

“They proved that all the lunatic ravings of the right were correct, and that there’s no objectivity [on social media platforms] whatsoever,” said Ron Coleman, a prominent conservative lawyer known for his work on tech censorship and free speech issues.

For nearly a decade, conservatives have accused social media companies of deliberately silencing them through a variety of subtle means — claiming their videos don’t always show up on their subscribers’ Facebook feeds, or that their accounts don’t show up in searches or that the platforms inappropriately label their content as promoting violence or misinformation. Researchers say such claims have never proven any intentional discrimination and note that some of the most widely shared content on social media platforms comes from conservative voices and outlets.

And notably, efforts to limit distribution of the Post story have not prevented the piece from circulating broadly on social media. The report generated 2.59 million interactions on Facebook and Twitter last week, more than double the next biggest story about Trump or Biden, even as national security specialists warned the information bore the hallmarks of a Russian disinformation campaign.

Still, anti-social media conservatives felt the handling of the story offered them a concrete, game-changing example of the type of silencing they have long claimed.

“The Rubicon was crossed [last] week, for sure,” said Rachel Bovard, a senior director of policy at the Conservative Partnership Institute, who focuses on social media and free speech issues.

Years ago, the issue of internet free speech was popular among the more populist wing of the conservative movement — specifically, people and publications that drew influence from an online presence, and that were more likely to be targeted for violating platforms’ terms of service by sharing inflammatory content.

Throughout Trump’s presidency, Republicans have increasingly paid lip service to this constituency, echoing the complaints in hearings.

And Trump himself has repeatedly used his presidential platform to bemoan social-media companies’ behavior, hosting events about conservative censorship at the White House and signing a legally toothless executive order. As the November election neared, the White House pressured key Senate Republicans to hold hearings on alleged bias.

On Capitol Hill, competing Republican bills have appeared that would drastically revise Section 230 of the Communications Decency Act, which stipulated that digital platforms were not legally liable for content others had uploaded.

“The objection for some on the right always was, ‘Well, these platforms don’t engage in viewpoint censorship, they’re not politically biased, this all a crock of crap,’” Bovard said.

But now, the handling of the Post story — which offered unverified emails claiming Hunter Biden had arranged a meeting between his father, then-Vice President Joe Biden, and a Ukrainian business contact — has pushed more of the GOP into MAGA’s anti-social media camp. The timing (days before the election) and subject (Biden’s alleged corruption) likely helped. Some Republicans, such as McCarthy, started calling for the repeal of Section 230, while others wondered whether Twitter had taken on even more responsibilities other than simple bias.

“Is Twitter an ‘in kind donor’ to the Biden campaign? A ‘publisher?’” tweeted Kentucky Republican Rep. Thomas Massie last Thursday.

Trump was more insistent.

“If Big Tech persists, in coordination with the mainstream media, we must immediately strip them of their Section 230 protections,” he tweeted Friday. “When government granted these protections, they created a monster!”

Shoshana Weissmann, a fellow at the free market-oriented R Street Institute focused on Section 230 and licensing reform, sees the current outrage on Capitol Hill as far more political than policy focused. She argued that there are valid reasons for Section 230 to exist, saying digital platforms aren’t capable of policing all posts.

“If I threaten the president online, then Twitter’s not liable for that,” she said. “It would be me liable for that, or whoever made the threat or did something illegal online is liable for it. And it makes sense because there’s billions and billions of posts.”

And repealing Section 230 wouldn’t actually assuage conservative complaints, Weissmann insisted.

“It wouldn’t fix the partisan moderating,” she said. “These things are totally unrelated. It’s just kind of punishing them, because they’re there.”

Regardless of the policy implications, however, the handling of the Post story has played right into the hands of MAGA’s political arguments. Coleman, a prominent legal voice in the anti-social media world, said he was surprised at how Twitter and Facebook handled the story.

“For the people who control so much of the media complex now, and who understand so well what virality is about, they completely failed to make any accounting whatsoever for the Streisand effect,” he said, referencing the phenomenon where an attempt to hide something actually draws it greater attention.

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Trump poised to clinch US$1.3-billion social media company stock award

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Donald Trump is set to secure on Tuesday a stock bonus worth US$1.3-billion from the company that operates his social media app Truth Social (DJT-Q), equivalent to about half the majority stake he already owns in it, thanks to the wild rally in its shares.

The award will take the former U.S. president’s overall stake in the company, Trump Media & Technology Group (TMTG), to US$4.1-billion.

While Mr. Trump has agreed not to sell any of his TMTG shares before September, the windfall represents a significant boost to his wealth, which Forbes pegs at US$4.7-billion.

Unlike much of his real estate empire, shares are easy to divest in the stock market and could come in handy as Mr. Trump’s legal fees and fines pile up, including a US$454.2-million judgment in his New York civil fraud case he is appealing.

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The bonus also reflects the exuberant trading in TMTG’s shares, which have been on a roller coaster ride since the company listed on Nasdaq last month through a merger with a special purpose acquisition company (SPAC) and was snapped up by Trump supporters and speculators.

Mr. Trump will be entitled to the stock bonus under the terms of the SPAC deal once TMTG’s shares stay above US$17.50 for 20 trading days after the company’s March 26 listing. They ended trading on Monday at US$35.50, and they would have to lose more than half their value on Tuesday for Mr. Trump to miss out.

TMTG’s current valuation of approximately US$5-billion is equivalent to about 1,220 times the loss-making company’s revenue in 2023 of US$4.1-million.

No other U.S. company of similar market capitalization has such a high valuation multiple, LSEG data shows. This is despite TMTG warning investors in regulatory filings that its operational losses raise “substantial doubt” about its ability to remain in business.

A TMTG spokesperson declined to comment on the stock award to Mr. Trump. “With more than $200 million in the bank and zero debt, Trump Media is fulfilling all its obligations related to the merger and rapidly moving forward with its business plan,” the spokesperson said.

While Mr. Trump’s windfall is rich for a small, loss-making company like TMTG, the earnout structure that allows it is common. According to a report from law firm Freshfields Bruckhaus Deringer, stock earnouts for management were seen in more than half the SPAC mergers completed in 2022.

However, few executives clinch these earnout bonuses because many SPAC deals end up performing poorly in the stock market, said Freshfields securities lawyer Michael Levitt. TMTG’s case is rare because its shares are trading decoupled from its business prospects.

“Many earnouts in SPACs are never satisfied because many SPAC prices fall significantly after the merger is completed,” Mr. Levitt said.

To be sure, TMTG made it easier for Mr. Trump to meet the earnout threshold. When TMTG agreed to merge with the SPAC in October, 2021, the deal envisioned that TMTG shares had to trade above US$30 for Mr. Trump to get the full earnout bonus. The two sides amended the deal in August, 2023 to lower that threshold to US$17.50, regulatory filings show.

Had that not happened, Mr. Trump would not have yet earned the full bonus because TMTG’s shares traded below US$30 last week. The terms of the deal, however, give Mr. Trump three years from the listing to win the full earnout, so he could have still earned it if the shares traded above the threshold for 20 days in any 30-day period during this time.

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B.C. puts online harms bill on hold after agreement with social media companies

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The B.C. government is putting its proposed online harms legislation on hold after reaching an agreement with some of the largest social media platforms to make people safer online.

Premier David Eby says in a joint statement with representatives of the firms Meta, TikTok, X and Snap that they will form an online safety action table, where they’ll discuss “tangible steps” towards protecting people from online harms.

Eby says the social media companies have “agreed to work collaboratively” with the province on preventing harm, while Meta will also commit to working with B.C’s emergency management officials to help amplify official information during natural disasters and other events.

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“We have had assurance from Facebook on a couple of things. First, that they will work with us to deliver emergency information to British Columbia in this wildfire season that (people) can rely on, they can find easily, and that will link into official government channels to distribute information quickly and effectively,” Eby said at a Tuesday press conference.

“This is a major step and I’m very appreciative that we are in this place now.”


Click to play video: 'B.C. takes steps to protect people from online harms'
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B.C. takes steps to protect people from online harms

 


The announcement to put the bill on hold is a sharp turn for the government, after Eby announced in March that social media companies were among the “wrongdoers” that would pay for health-related costs linked to their platforms.


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At the time, Eby compared social media harms to those caused by tobacco and opioids, saying the legislation was similar to previous laws that allowed the province to sue companies selling those products.


Click to play video: 'Carol Todd on taking action against online harms'
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Carol Todd on taking action against online harms

 


Last August, Eby criticized Meta over its continued blackout of Canadian news outlets as wildfires forced thousands from their homes.  Eby said it was “unacceptable” for the tech giant to cut off access to news on its platforms at a time when people needed timely, potentially life-saving information.

“I think it’s fair to say that I was very skeptical, following the initial contact (with Meta),” Eby said Tuesday.

Eby said one of the key drivers for legislation targetting online harm was the death of Carson Cleland, the 12-year-old Prince George, B.C., boy who died by suicide last October after falling victim to online sextortion.

The premier says in announcing the pause that bringing social media companies to the table for discussion achieves the same purpose of protecting youth from online harm.

“Our commitment to every parent is that we will do everything we can to keep their families safe online and in our communities,” the premier said in his statement.

 

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Vaughn Palmer: B.C. premier gives social media giants another chance

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VICTORIA — Premier David Eby has pushed the pause button on a contentious bill that would have allowed the province to recover health care and other costs attributed to the marketing of risky products in B.C.

Two dozen business and industry groups had called for the New Democrats to put the bill on hold, claiming it was so broadly drafted that it could be used to go after producers, distributors and retailers of every kind.

Eby claimed the pause had nothing to do with those protests. Rather, he said, it was the willingness of giant social media companies to join with the government to immediately address online safety in B.C.

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“It is safe to say that we got the attention of these major multinational companies,” the premier told reporters on Tuesday, citing the deal with Meta, Snapchat, TikTok and X, the major players in the field.

“They understand our concern and the urgency with which we’re approaching this issue. They also understand the bill is still there.”

The New Democrats maintain that the legislation was never intended to capture the many B.C. companies and associations that complained about it.

Rather it was targeted at Facebook owner Meta and other social media companies and the online harm done to young people. A prime example was the suicide of a Prince George youth who was trapped by an online predator.

Still, there was nothing in the wording of Bill 12, the Public Health Accountability and Cost Recovery Act, to indicate its application would be confined to social media companies or their impact on young people.

Eby even admitted that the law could also be used to recover costs associated with vaping products and energy drinks.

Some critics wondered if the bill’s broad-based concept of harms and risks could be used to prosecute the liquor board or the dispensers of safer-supply drugs, products with proven harms greater than any sugary drink.

Perhaps thinking along those lines, the government specifically exempted itself from prosecution under the Act.

This week’s announcement came as a surprise. As recently as Monday, Attorney General Niki Sharma told reporters the government had no intention of putting the bill on hold.

Tuesday, she justified her evasion by saying the talks with the social media companies were intense and confidential.

She said the pause was conditional on Meta and the other companies delivering a quick response to government concerns.

“British Columbians expect us to take action on online safety,” she told reporters. “What I’ll be looking for at this table is quick and immediate action to get to that better, safety online.”

A prime goal is addressing online harassment and “the online mental health and anxiety that’s rising in young people,” she said

“I’m going to be watching along with the premier as to whether or not we do get real action on changes for young people right away,” said the attorney general.

“I want to sit down with these companies look at them face to face and see what they can do immediately to improve the outcomes for British Columbians.”

Meta has already committed to rectifying Eby’s concern that it should relay urgent news about wildfires, flood and other disasters in B.C. Last year, those were blocked, collateral damage in the company’s hardball dispute with the federal government over linking to news stories from Canadian media companies.

Eby says he was very skeptical about the initial contact from the companies. Now he sees Meta’s willingness to deliver emergency information as a “major step” and he’s prepared to give talks the benefit of the doubt.

Not long ago he was scoring political points off the social media companies in the harshest terms.

“The billionaires who run them resist accountability, resist any suggestion that they have responsibility for the harms that they are causing,” said the premier on March 14, the day Bill 12 was introduced.

“The message to these big, faceless companies is, you will be held accountable in B.C. for the harm that you cause to people.”

Given those characterizations, perhaps the big, faceless billionaires will simply direct their negotiating team to play for time until the legislation adjourns as scheduled on May 16.

“The legislation is not being pulled and we’re not backtracking,” said Sharma. “We can always come back and bring legislation back.”

The government could schedule a quick makeup session of the legislature in late May or June or even in early September, before the house is dissolved for the four-week campaign leading up to the scheduled election day, Oct. 19.

More likely, if the New Democrats feel doublecrossed, they could go back to war with the faceless billionaires with a view to re-enacting Bill 12 after a hoped-for election victory.

Even if the New Democrats get some satisfaction from the social media companies in the short term, they have also framed Bill 12 as a way to force the marketers of risky products to help cover the cost of health care and other services.

They probably mean it when they say Bill 12 is only paused, not permanently consigned to the trash heap.

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