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REUTERS/Brendan McDermid/File Photo
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Reddit will need to spend heavily on content moderation as it may face greater scrutiny as a public company, analysts said, threatening its longstanding policy of relying on an army of volunteers to maintain order on its platform. Depending on volunteers is not sustainable, given the regulatory scrutiny that the company will now face, said Julian Klymochko, CEO of alternative investment solutions firm Accelerate Financial Technologies.
Content moderation on social media platforms is a growing legal thorn. In 2023, X, formerly known as Twitter, sued California over a state law that requires social media companies to publicly disclose how they moderate certain content. X failed to block that law in December.
In February, U.S. Supreme Court expressed reservations about Republican-backed laws in Florida and Texas meant to restrict the power of social media companies to curb content that the platforms deem objectionable. The court last week appeared wary of curbing U.S. government contacts with social media platforms.
More top news:
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Trump’s legal woes …
Donald Trump filed a U.S. Supreme Court brief in his bid for criminal immunity for trying to overturn his 2020 election loss … Prosecutors accused Trump of making “wild and untrue” accusations against them about the timing of the disclosure of possible evidence in his hush money criminal case … New York Attorney General Letitia James made an official notification of the civil fraud court award against Trump in Westchester County as possible asset seizures loom. Trump’s efforts to secure a bond to cover that judgment was been rejected by 30 surety companies. Trump said he may be forced to sell parts of his real estate business to secure a bond to cover the judgment … Meanwhile, Trump’s fundraising group Save America spent more than $5.5 million in legal fees in February … A judge said Trump could appeal a ruling in the Georgia election subversion case that kept prosecutor Fani Willis on the case … Trump filed a defamation lawsuit against ABC News and George Stephanopoulos over comments made on air involving writer E. Jean Carroll’s rape case … Trump lost a bid to block testimony from Michael Cohen and Stormy Daniels at his upcoming hush money trial.
U.S. Supreme Court …
The U.S. Supreme Court appeared divided over a California woman’s bid to overturn her drug smuggling. She argues she acted unwittingly as a “blind” drug mule … In a free speech case, the top court appeared wary of curbing the U.S. government’s contacts with social media platforms … The justices seemed inclined to grant insurers broad leeway to participate in bankruptcy proceedings … Columnist Alison Frankel takes a look at the dog food fight that is on at the high court … The Supreme Court grappled with the NRA’s claim that a New York state official violated its free speech rights by coercing banks and insurers to cut ties with it … The court rejected an ousted New Mexico official’s challenge to judicial rulings that disqualified him from office over his role in Jan. 6 Capitol attack … And U.S. Supreme Court justices and federal judges can no longer avoid disclosing the value of travel-related gifts they receive under new rules.
Antitrust …
The DOJ and 15 states sued Apple alleging it monopolized the smartphone market … Apple, Meta and Google are set to be investigated for potential violations of the EU’s Digital Markets Act … The FTC, suing to block Kroger’s acquisition of Albertson, urged Congress to look into grocery profits that remain elevated since the pandemic … Capital One, in a regulatory filing, said that its $35.3 billion merger with Discover Financial will boost competition … A U.S. judge dismissed DirecTV’s lawsuit accusing Nexstar Media and two others of scheming to drive up retransmission fees for content distribution … France’s competition watchdog fined Google $271.73 million for breaches linked to EU intellectual property rules … Star tennis player Reese Brantmeier sued the NCAA over prize-money restrictions on student athletes … The 2nd Circuit revived an antitrust lawsuit by Regeneron Pharmaceuticals against Novartis.
Environment …
Chevron will pay $13.1 million to settle with two California state agencies for past oil spills … The DOJ sued Campbell’s Soup alleging the company illegally released too much bacteria, phosphorous and other contaminants into a river that feeds into Lake Erie … Northern Dynasty Minerals sued the EPA, seeking to overturn the agency’s veto of the proposed Pebble copper and gold mine in Alaska … The EPA finalized a rule that would ban using and importing cancer-causing asbestos … The Department of Energy eased proposed rules that would have forced Detroit automakers to scale back production of gas-guzzling vehicles.
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Forum shopping for me but not for thee? In recent years, the Chamber of Commerce has been the staunchest of allies for companies that want the U.S. Supreme Court to restrict plaintiffs’ ability to pick where they can file lawsuits. But the group has a more expansive view of venue as the lead plaintiff in a suit in Fort Worth, Texas, federal court that challenges a new CFPB rule limiting late fees by big credit card issuers. With the judge in the CFPB case raising “concerns” about Fort Worth as the proper venue, Alison Frankel looks at the apparent disconnect.
Check out other recent pieces from our columnists: Alison Frankel and Jenna Greene
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Additional writing by Kuheli Biswas.
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