Connect with us

Business

As Oil Goes Up, Stocks Go Down

Published

on

The I.M.F. mentioned over the weekend that the conflict in Ukraine and sanctions in opposition to Russia would have a “extreme influence” on the worldwide economic system, additional disrupting provide chains and stoking already excessive inflation. Buyers have been processing the newest developments, and markets opened on Monday with sharp strikes: Most notably, power costs are hovering and shares are sinking.

Brent crude oil, the worldwide benchmark, briefly rose above $130 a barrel, roughly double the worth a 12 months in the past. The worth of European pure fuel continued to soar, and is triple its degree a month in the past. Shares fell in Asia and in Europe many markets have slipped into bear-market territory, down 20 % from current highs. Shares within the U.S. are poised to open decrease in what’s shaping as much as be one other tumultuous session.

Power costs are reacting to speak of an embargo on Russian oil. Western lawmakers have begun discussing a ban, lengthy seen as unlikely. (The Treasury Division confused that Wall Avenue might nonetheless commerce Russian oil and fuel, after some monetary companies stopped.)

Shell reveals how troublesome a complete ban can be to implement. The oil large confirmed that it purchased some Russian crude to keep up gasoline provides to Europe, even because it mentioned it might get out of its Russia operations. “We are going to additional scale back our use of Russian oil as various crudes turn into available for purchase,” an organization spokesman advised Reuters, however “within the present, tight market there’s a relative lack of alternate options.”

Analysts are rethinking their stock-market forecasts. One theme that’s taking form, strategists at Goldman Sachs observe in a report, is a shift towards “pricing extra threat premium in European property.” Fairness and forex markets in Europe have already blown previous the financial institution’s pre-invasion draw back situation, whereas U.S. property have solely priced in about half of the forecast worst-case decline. (Relatedly, Goldman not too long ago upped its expectations for buybacks and dividends at S&P 500 companies.) Holger Schmieding of Berenberg expects shares to recuperate a few of their losses in three to 6 months, however “for some time, markets can tackle a self-sustaining dynamic of their very own. Concern can beget concern.”

Advertisement

The newest on the Russia-Ukraine conflict:

China indicators full steam forward for its economic system. Beijing officers over the weekend introduced their financial priorities for the 12 months, together with a development goal of 5.5 %, job creation and elevated welfare spending.

The pandemic’s international loss of life toll nears 6 million. Researchers at Johns Hopkins College predicted that the world would surpass that whole at present.

A trucker convoy targets Washington. A whole lot of autos, impressed by antigovernment protests in Canada, encircled the District of Columbia yesterday, driving slowly to snarl site visitors and protest Covid restrictions. It appeared to have petered out by the afternoon, however organizers mentioned they plan to hit the street once more at present.

Robert Smith might have performed an even bigger function in a tax avoidance scheme than beforehand thought. Court docket paperwork present that the billionaire financier was concerned in planning a 2004 deal that permit a key investor, Robert Brockman, keep away from U.S. taxes, The Wall Avenue Journal stories. Smith reached a nonprosecution settlement with federal authorities in 2020.

Advertisement

“The Batman” cleans up on the field workplace. The newest superhero film took practically $129 million within the U.S. and Canada on its opening weekend, vastly exceeding expectations.

This weekend noticed a gentle stream of corporations pausing or ending their operations in Russia. American Specific, Mastercard and Visa mentioned they might droop operations within the nation; Netflix stopped streaming there and TikTok halted uploads; KPMG and PWC pulled out, becoming a member of a number of consultancies and legislation companies. (Yale’s enterprise faculty is retaining an inventory of what corporations are doing.)

Numerous distinguished shopper manufacturers are retaining quiet, together with Coca-Cola, Mars, McDonald’s, PepsiCo and Procter & Gamble. (None responded to a request for remark.) Many shopper corporations have spent closely to construct their manufacturers in Russia, and have intensive infrastructure to think about.

  • PepsiCo, which began promoting within the Soviet Union within the early Seventies, acquired a Russian juice and dairy firm in a $5.4 billion deal a decade in the past.

  • Coca-Cola, which entered the Soviet Union after the autumn of the Berlin Wall, has spent closely to meet up with Pepsi. Coke has “an extended historical past of eager to be in each nation on this planet,” mentioned Mark Pendergrast, writer of “For God, Nation and Coca-Cola.”

  • Mars began enterprise in Russia in 1991 and has invested greater than $2 billion out there, in line with the Roscongress Basis.

Ought to they keep or ought to they go? Some query whether or not corporations ought to must take a stand on Russia, given strife elsewhere on this planet. There are additionally considerations that if manufacturers act in Russia, they is perhaps requested to do the identical in China, the place their companies are larger.

Quitting Russia hurts bizarre Russians. McDonald’s has about 850 Russian shops, with hundreds of staff. Danone said yesterday that it might droop “all funding tasks” in Russia, however nonetheless promote dairy merchandise and toddler formulation to satisfy “important meals wants.” However some specialists say that for sanctions to work, they’ve to harm, together with within the nations imposing the punishments.

Advertisement

Extra on company motion over Russia:


— Bruce Barth, who had cash stolen from his digital pockets through the fee app Zelle. Regardless of rising fraud on the cash switch service, which was created by the nation’s largest banks, many shoppers haven’t been refunded.


Expectant fathers can management after they inform the workplace their information. They may select to say they’re anticipating a baby to shut colleagues, however not at a gathering with purchasers. Pregnant ladies finally don’t have a selection: Their altering our bodies do the telling — except they work remotely.

Pregnant ladies within the Zoom period have been in a position to work with out broadcasting their pregnancies, and lots of of them are having fun with it, DealBook’s Sarah Kessler stories. It’s not nearly avoiding awkward feedback (“Have been you attempting?”). Many additionally say having their bellies cropped out of video chats allayed their fears of being handled in another way by colleagues.

Stereotypes about working moms additionally have an effect on pregnant ladies. Each teams are usually seen as much less competent, extra needing of lodging and fewer dedicated to work, mentioned Eden King, a professor of psychology at Rice College. In a 2020 research, King and her colleagues requested greater than 100 pregnant ladies to trace how a lot their supervisors, with out having been requested for assist, did issues like assign them much less work. Girls who obtained extra undesirable assist reported feeling much less succesful, they usually have been extra more likely to stop.

The digital workplace doesn’t resolve these issues, however it could assist. “Some ladies do need assistance, and a few ladies do need lodging,” King mentioned. However “you need to ask ladies what they need and what they want and never assume that we all know.”

Advertisement

Investments linked to environmental, social and governance points are anticipated to succeed in as a lot as $41 trillion by the tip of this 12 months, in line with Bloomberg Intelligence. However the conflict in Ukraine is highlighting how the E.S.G. label has been stretched.

Are army shares socially accountable? Charles Armitage, Citigroup’s European protection trade analyst, not too long ago mentioned that given Russia’s assault on Ukraine, the E.S.G. label must be prolonged to arms producers, which have historically been excluded. “Defending the values of liberal democracies and making a deterrent, which preserves peace and international stability” makes this warranted, he mentioned. A number of E.S.G. specialists dismissed the proposal, but it surely captures a thorny debate.

  • Blackrock’s iShares ESG Conscious MSCI USA, the world’s largest “socially accountable” exchange-traded fund, held $127 million price of shares on the finish of final 12 months within the army contractor Raytheon, a significant provider of arms to Saudi Arabia, which used them to bomb civilians in Yemen.

The S.E.C. is wanting into E.S.G. fund rules. Final week, its chair, Gary Gensler, said that the trade might use easier labels, akin to these on milk cartons. Funds must be extra particular about what social points drive funding choices, Rachel Robasciotti, the supervisor of the Adasina Social Justice All Cap International exchange-traded fund, advised DealBook: “There are completely some funds which might be simply placing on the veneer of social duty.”

Offers

  • Warren Buffett’s Berkshire Hathaway introduced a $5 billion stake in Occidental Petroleum, from which Carl Icahn offered out. (CNBC, WSJ)

  • The homeowners of the Chicago Cubs M.L.B. crew might reportedly be part of the bidding for Chelsea F.C., the English soccer crew owned by the Russian billionaire Roman Abramovich. (Bloomberg)

  • Ryan Cohen, the billionaire co-founder of Chewy and director at GameStop, has taken an almost 10 % stake in Mattress Tub & Past and is pushing to shake up the retailer’s technique. (WSJ)

Coverage

Advertisement
  • Buyers in Amazon plan to demand that the e-commerce large present extra element about its tax payments. (FT)

  • Disney is dealing with criticism for not talking out in opposition to a Florida state invoice that will restrict what colleges educate about sexual orientation. (Wrap)

  • Democrats and Republicans are drawing totally different classes from processing delays on the I.R.S. (NYT)

Better of the remainder

  • Activision Blizzard’s C.E.O., Bobby Kotick, is stepping down from Coca-Cola’s board amid criticism over how he handled accusations of office harassment and abuse at Activision. (CNBC)

  • Apple shareholders authorized proposals recommending an audit of the corporate’s civil-rights influence, which the corporate opposed. (Bloomberg)

  • Ken Griffin of Citadel admitted that he might have been mistaken to dismiss crypto. (Insider)

We’d like your suggestions! Please e-mail ideas and solutions to dealbook@nytimes.com.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

Apple announces deal with OpenAI. Will it be a game-changer?

Published

on

Apple announces deal with OpenAI. Will it be a game-changer?

Apple is finally taking the plunge on AI.

The company on Monday unveiled a suite of new artificial intelligence capabilities that will be available in its newest operating system, including connecting its interactive voice feature Siri with OpenAI’s ChatGPT in a major deal that could supercharge adoption of the fast-developing technology.

Siri, for example, will be able to surface answers from ChatGPT for Apple devices and provide relevant contextual information across several apps, the Cupertino, Calif., tech giant said at its highly anticipated developer conference. The iPhone, Mac and iPad maker’s newest operating system update will also feature AI-augmented improvements in its photo editing and image search capabilities, among other things.

Apple Chief Executive Tim Cook described Apple’s new AI-based functions, dubbed Apple Intelligence, as the next big step for the company, which has been slow to adopt emerging technology that has the potential to change the way people live and work.

“Recent developments in generative intelligence and large language models offer powerful capabilities that provide the opportunity to take the experience of using Apple products to new heights,” Cook said in a keynote address during Apple’s Worldwide Developers Conference, where the company previewed the iOS 18 system and other software updates for products including the Mac and iPad.

Advertisement

The move signals Apple’s wider ambitions in the expanding AI landscape, as technology has progressed dramatically. Tools made by San Francisco-based OpenAI have been used to create music videos, read bedtime stories to children and help brainstorm ideas for writers. Companies including Microsoft and Google have aggressively incorporated AI into their products and services.

Apple has often not been the first to market with new technological advances, choosing instead to enter new product categories — including smartphones and tablets — once they’ve been established, leading to broader consumer adoption. For example, Apple only began selling its own virtual and augmented reality headset (known as Vision Pro) early this year.

Apple said its AI capabilities were created with privacy protections in mind. Apple Intelligence uses on-device processing. For requests that require use of the cloud, iPhone, iPad and Mac “do not talk to a server unless its software has been publicly logged for inspection” and the data are not retained or exposed, the company said.

Apple presented several uses for Apple’s new AI features. For example, if an iPhone user gets a notification that a work meeting has been moved to a later time, she can ask Siri how much time it would take for her to get from where the meeting is located to her kid’s play that night. In another hypothetical instance, an iPad user could share a photo of an empty patio and ask Siri what plants should be added.

The company also said customers can use Apple Intelligence to make suggestions for their writing, using it to analyze the tone of an email with options to make it more friendly or professional.

Advertisement

The announcement of the OpenAI deal “kicks off a new frontier for Apple,” said Daniel Ives, a managing director at Wedbush Securities who follows Apple.

“This was a historical day for Apple and Cook & Co. did not disappoint in our view,” Ives, who has an “outperform,” or “buy,” rating on the company’s stock, said in a note to clients. “Apple is taking the right path to implement AI across its ecosystem while laying out the foundation for the company’s multi-year AI strategy across the strongest installed base of 2.2 billion iOS devices over the coming years.”

Investors were less impressed, sending Apple’s stock down 1.9% to $193.12 a share.

Apple hopes adding new AI tools to its products and services will make them more useful to customers and thus more attractive. The company has faced a number of challenges, including slowing device sales in China. Ives said that AI technology introduced to Apple’s ecosystem will bring more opportunities for Apple to generate revenue.

Through its deal with OpenAI, Apple’s digital assistant Siri can ask Apple users if Siri can relay a question to ChatGPT for further information. This allows Apple to harness ChatGPT’s platform and in return, Apple users also become familiar with ChatGPT and what it can do. Every day, Apple said, Siri gets 1.5 billion voice requests.

Advertisement

ChatGPT will be available for free to Apple users on its newest operating systems for iPhones, iPads and Macs later this year. Apple said its users won’t need an account with ChatGPT to use it on Apple devices. OpenAI won’t store requests and IP addresses will be obscured, the company said.

“Together with Apple, we’re making it easier for people to benefit from what AI can offer,” OpenAI CEO Sam Altman said in a statement.

Some tech companies, including Apple, didn’t anticipate the breakthroughs in AI over the last year, said Rob Enderle, principal analyst with advisory services firm Enderle Group. The partnership with OpenAI is one way for Apple to catch up. One of OpenAI’s major backers is Microsoft, an Apple competitor.

“Apple’s been significantly behind on AI,” Enderle said. “This is a method to allow Apple to make up for the fact that they haven’t been focused on AI like they should have done over the last decade or so.”

Apple Intelligence was one of many announcements and updates from Apple on Monday, including a feature that lets AirPods Pro users nod yes or shake their heads no to Siri’s questions when they are in crowded spaces. Additionally, the company announced that the Vision Pro headset will also be available in additional countries starting later this month, including mainland China, Hong Kong, Japan and Singapore.

Advertisement

The company also unveiled a new feature called InSight for its tvOS18 that is similar to Amazon’s X-Ray and shows the names of actors or a song playing on an Apple TV+ program.

OpenAI has become the best-known player in the artificial intelligence space, thanks to its tools including ChatGPT and Sora, its text-to-video tool. But the company has faced its fair share of controversies and challenges.

OpenAI last month received backlash from actor Scarlett Johansson, who said she was approached by the startup’s CEO to record her voice for a Siri-like voice assistant version of ChatGPT. After she declined the opportunity, Johansson said, she was upset when she heard what sounded like her voice in a ChatGPT demo.

Altman is known to be a fan of the 2013 movie “Her,” in which Johansson plays “Samantha,” the disembodied voice of a computer who provides friendship and, eventually, love to a lonely man played by Joaquin Phoenix.

OpenAI said that the AI voice, called “Sky,” was not Johansson’s and was recorded by an unnamed voice actor. Nonetheless, the company paused the use of the Sky voice.

Advertisement

OpenAI recently caught flak for disbanding a team that was tasked with coming up with systems to prevent the rise of artificial intelligence from leading to disaster for humanity. After the firestorm, OpenAI created a new safety committee led by board members, including Altman.

Last week in an open letter, former and current OpenAI employees also raised concerns. The group said that “AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this.”

OpenAI said in a statement said that it believes “rigorous debate is crucial” and it will continue to engage with communities, governments and civil society. The company said it has an anonymous hotline and a safety and security committee.

“We’re proud of our track record providing the most capable and safest AI systems and believe in our scientific approach to addressing risk,” the company said.

Large tech companies are also facing their own challenges, with the U.S. government raising antitrust concerns.

Advertisement

In March, the Department of Justice sued Apple, accusing the tech giant of stifling competition and leveraging its clout and ownership of the popular App Store to increase prices for customers. Apple said the lawsuit threatens “who we are.”

“If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect,” Apple said in a statement.

Continue Reading

Business

Scams tied to Ozempic and other new weight-loss drugs are surging. How to protect yourself

Published

on

Scams tied to Ozempic and other new weight-loss drugs are surging. How to protect yourself

Ozempic, Wegovy and other new weight-loss drugs have proved so good at helping users shed pounds, they’ve quickly become a multibillion-dollar industry.

The prescription-only medications have also been in consistently short supply, which is why they’ve grown increasingly popular — with scammers.

Online con artists are luring victims with discount offers of Ozempic and similar drugs with no prescription required. After they take the money, however, they deliver something their clients didn’t order — fake drugs, perhaps, or just the disappointment that comes when people realize they’ve been taken.

A new report by threat researchers at McAfee found 176,871 phishing emails and 449 malicious websites tied to offers of Ozempic, Wegovy and semaglutide, the generic name for these drugs, from January to April 2024. Phishing attempts were almost 200% higher during the period than they were from October to December, the internet security company reported.

Advertisement

In addition, the researchers found that scammers were creating fake profiles on Facebook so they could run weight-loss-drug swindles there. Others took hundreds of fake offers to Craigslist — including 207 of them in a single day in April.

Novo Nordisk originally developed the semaglutide it dubbed Ozempic as a treatment for Type 2 diabetes, but clinicians found that semaglutide could help people lose significant amounts of weight by suppressing appetite. The Food and Drug Administration approved Novo Nordisk’s Wegovy as a weight-loss drug in 2021; since then, it has approved an alternative drug, Eli Lilly’s Zepbound, which is based on its diabetes treatment Mounjaro.

Although Ozempic costs nearly $1,000 a month without insurance, the demand for these drugs has grown rapidly. Sales of Ozempic alone are projected to reach $11 billion this year, according to one analysis.

The combination of high prices and insufficient supply has proved irresistible to scammers.

Abhishek Karnik, head of threat research at McAfee, said the fraudsters typically have two types of victims: people who can’t get a prescription for Ozempic, and people who have a prescription but can’t find it at their local pharmacies.

Advertisement

The scams can be personalized and targeted at people who’ve shown some interest in weight-loss drugs, using information collected about them and their browsing habits, said Iskander Sanchez-Rola, director of privacy innovation for the internet security company Norton. The pitches may come through email or ads placed on search engines or websites, he said, including sites that are well-established and trustworthy.

“Anywhere a human can have their eyes on, they will be there,” Sanchez-Rola said of the scammers. Just because a website is legitimate, he added, that’s no guarantee that the ads there will be.

To pull off the scam, Karnik said, the fraudsters will often interact with the prospective buyer through a social media network or platform such as Telegram to win their trust. That could include offering over-the-top testimonials to their legitimacy and to the quality of the products. “You’ll have people claiming they had huge success with these drugs,” he said, “but none of it is true.”

Scam sellers may also pose as doctors or pharmacists, often from foreign countries, and claim they can sell Ozempic without having to examine you or see a prescription. That may seem sketchy, but many Americans have imported real medications such as insulin illicitly from Canada and Mexico for years because the prices are so much lower outside the U.S.

“One example on Facebook Marketplace included a ‘Doctor Melissa’ based in Canada who could provide Mounjaro and Ozempic without a prescription, with payment available through bitcoin, Zelle, Venmo and Cash App — all of which are nonstandard payment methods for prescription drugs and should be red flags for consumers,” McAfee said.

Advertisement

According to McAfee, some scammers just take your money and disappear, possibly after getting you to share sensitive personal information (unwittingly, in many cases). Others will deliver an injection pen — the typical format for these weight-loss drugs — filled with something other than the advertised medication; they may be insulin injectors, EpiPens or even injectors loaded with salt water, McAfee said.

That sort of counterfeit shipment poses a significant health risk. For example, McAfee said, one person who used Ozempic to help manage her diabetes bought some injectors online after local pharmacies ran out, only to discover that the pens she received were filled with insulin. Had she not been tipped off by the flimsy packaging and different appearance, McAfee said, she could have injected herself with a fatal dose.

Another type of con, Sanchez-Rola said, is when the scammer will deliver a bottle of aspirin or some other drug you didn’t order, then make it so burdensome for you to obtain a refund that you give up.

How to detect Ozempic scams

The first rule, McAfee said, is never to buy one of these drugs without a prescription. After all, doing so is illegal in the United States.

Sticking to licensed pharmacies is wise too. You can check whether a California pharmacy is licensed at the State Board of Pharmacy website; for other states, consult the FDA’s website.

Advertisement

But scammers also target people who have prescriptions they can’t fill locally, as well as offering medications they tout as nonprescription alternatives that are just as good as Ozempic. And to make their products more attractive, they may use AI tools to produce eye-popping before-and-after images that are persuasively realistic.

Here are more red flags to look for before buying a weight-loss drug online:

Strikingly deep discounts. Fraud experts say that if a price looks too good to be true, it almost certainly is. Another thing to bear in mind, Sanchez-Rola said: “You didn’t find the best deal, the best deal found you, which is already a big red flag.”

Misleading claims. McAfee warns that overly rosy promises of results are a sign of a scam. Be especially wary if the site offers none of the usual disclaimers about side effects, possible negative reactions or details about how the product should be used.

Payment methods other than credit cards. Scammers prefer systems that act more like cash, such as Zelle, Cash App or gift cards, or are untraceable, such as cryptocurrency. Sanchez-Rola said sometimes scammers will also offer a credit card option that looks real, but it’s designed to display an error message when you try to use it so you’ll be forced to use a different, sketchier payment method.

Advertisement

A mix of 5-star and 1-star reviews. Sanchez-Rola said that fraudsters’ websites often try to bury the actual reviews posted by unhappy customers under a slew of bot-generated praise. If you see a lot of 5-star reviews that were posted within a short period of time, that’s a huge red flag, he said, especially if the reviews have no comments attached.

Deep discounts that expire soon. Con artists will try to override your reservations about a transaction by giving it a false sense of urgency.

Boilerplate company information. Scammers’ websites often provide phone numbers, addresses, contact information and descriptions that they copy from legitimate sites, Sanchez-Rola said. You should paste the phone number and other information into a Google search to see if they’re used by other, unrelated businesses — for example, he said, one scam site copied its physical address from an ice cream parlor, assuming that its customers wouldn’t bother to check.

Use security software that helps detect scams. McAfee and Norton, among other companies, offer programs that can alert you when you’re about to navigate to a suspicious website.

What to do if you’ve fallen for an Ozempic scam

If you’re fortunate enough to have used a credit card, you can dispute the charge and eventually obtain a refund. You can get similar results if you make your purchase using PayPal or Venmo with the buyer protection feature enabled.

Advertisement

If not — for example, if you used Zelle or paid with gift cards — you can at least report the fraud to try to protect other potential victims. The federal government has an online tool to help you find the right law enforcement agency to file your report with. You can also file a complaint with the FTC’s site and the FBI’s Internet Crime Complaint Center.

Beyond that, Sanchez-Rola said, if you were conned on a social network, you should report the fraudster’s profile to the network’s administrators. For example, Facebook explains how to report fraudulent Marketplace sellers in its help section, and TikTok walks through how to report a problematic account in its support section.

Advertisement
Continue Reading

Business

Supreme Court puts off ruling on whether state social media laws violate the 1st Amendment

Published

on

Supreme Court puts off ruling on whether state social media laws violate the 1st Amendment

The Supreme Court on Monday said it is putting off a ruling for now on whether social media laws adopted by Florida and Texas violate the 1st Amendment.

Instead, the justices sent those cases back to lower courts to consider how those laws would apply in specific situations.

Speaking for the unanimous court, Justice Elena Kagan said the lawyers for NetChoice, the group that sued the states, and the lower court judges who ruled so far made a mistake by focusing broadly on free-speech principles without considering how the laws would apply in different circumstances.

“In sum, there is much work to do below on both these cases, given the facial nature of NetChoice’s challenges. But that work must be done consistent with the 1st Amendment, which does not go on leave when social media are involved,” she said.

Advertisement

All nine justices agreed with the outcome.

Monday’s decision leaves unresolved whether states may play a role in deciding what appears on popular platforms that are seen by tens of millions of viewers.

The two largest red states had passed laws to fine and punish platforms like Facebook, YouTube, Twitter (now X) and Instagram for what they said was “censoring” posts that appeal to conservatives.

The Florida and Texas laws under review arose from complaints three years ago that President Trump had been discriminated against or unfairly blocked by social media sites, including Twitter.

In 2021, Florida Gov. Ron DeSantis signed his state’s first-in-the-nation law and said it targeted the “Big Tech censors” who “discriminate in favor of the dominant Silicon Valley ideology.”

Advertisement

The measure, adopted before billionaire Elon Musk purchased Twitter and changed its name to X, applies to social media sites with more than $100 million in annual revenue or more than 100 million users.

It authorizes lawsuits for damages for “unfair censorship” and large fines if a social media site “deplatforms” a candidate for office.

Texas Gov. Greg Abbott signed a somewhat broader bill a few months later, saying “conservative speech” was being threatened. It says a social media platform with more than 50 million users in the United States “may not censor … or otherwise discriminate against expression” of users based on their viewpoint.

NetChoice and the Computer & Communications Industry Assn. sued to challenge both laws on free-speech grounds, and both laws were put on hold, including by a 5-4 order from the Supreme Court.

The drive to restrict social media is heating up in many states.

Advertisement

Last week, the court in a 6-3 vote threw out a lawsuit brought by Republican state attorneys that accused the Biden administration of censoring social media.

The administration said it had merely alerted sites about dangerous disinformation about vaccines and COVID-19. Justice Amy Coney Barrett said the state attorneys did not show that Facebook and other social media platforms removed postings because they were pressured to do so by the government.

Last year, the California Legislature adopted a measure to prohibit online companies from collecting and selling data on children and teenagers, but it was blocked on 1st Amendment grounds by a federal judge in San Jose.

Advertisement
Continue Reading

Trending