The Supreme Court heard arguments Wednesday in a case that will help determine whether social media platforms can be held liable for aiding and abetting terrorism for failing to remove content and accounts promoting it.
The arguments in Twitter v. Taamneh follow those in a case with similar facts, Gonzalez v. Google, that explores whether tech platforms can be held responsible for promoting terrorist posts through their recommendation algorithms. In that case, the justices seemed reluctant to overhaul the key legal liability shield in question, Section 230 of the Communications Decency Act, which protects platforms from being held accountable for hosting their users’ posts. While many appeared sympathetic to a narrower reading of the law, several also seemed to prefer kicking the responsibility over to Congress.
In Wednesday’s case, such a consensus was more elusive, as justices tested a variety of hypotheticals on lawyers for either side as well as a representative for the U.S. government, which generally argued in favor of Twitter. U.S. Deputy Solicitor General Edwin Kneedler represented the U.S. government.
The question in the case is whether Twitter can be held accountable for aiding and abetting a specific international terrorist act because it did not take more aggressive action against terrorist content on its service, given that it generally works to moderate and remove terrorist content under its policies.
Twitter’s lawyer Seth Waxman argued that the company should not be held responsible for aiding and abetting terrorism in instances where it is not directly aware of the specific post or account in question. He said that to satisfy the anti-terrorism law’s standard for liability, Twitter would have had to provide substantial assistance to the act of terrorism and know their actions would provide such assistance.
Waxman tried to draw a distinction between an open and widely used service like Twitter and a bank that provides money to a terrorist, given Know Your Customer laws that would require a bank to collect more information before providing its services, creating a greater level of knowledge than Twitter would have.
Justice Samuel Alito said he could see two different arguments for how Twitter could win, but it’s difficult to say in each where to draw the line. The first argument would be that Twitter did not know its services would be used to carry out a specific attack and the second would be that Twitter didn’t substantially assist in the attack.
Justice Sonia Sotomayor noted that basing a win for Twitter on the knowing standard would be difficult “because willful blindness is something we have said can constitute knowledge.”
Justice Elena Kagan at one point asked Waxman whether Twitter could be held liable if it actually didn’t enforce any policy against terrorist content on its site. Waxman said he doesn’t think it could unless it also provided “affirmative assistance” to the terrorists.
Kagan seemed to disagree with that interpretation, saying it would be obvious in that scenario that Twitter was providing substantial assistance to terrorist activity, asking, “how could it be otherwise?”
Justice Amy Coney Barrett laid out a possible framework for a ruling in favor of Twitter in her questioning of Kneedler. Coney Barrett said such an opinion might say that in order to find Twitter liable for aiding and abetting the terrorist act, the complaint would have to prove that Twitter’s service was directly used toward the terrorist attack, not just general recruitment or radicalizing.
Coney Barrett also hypothesized that the justices could say there needs to be an allegation of specific knowledge of a terrorist act in order to find a service that’s “open to all comers” liable.
Kneedler said it would be important to clarify that some businesses that are theoretically open to all, like banks, would have a more “individualized encounter” with their consumers in the course of doing business, granting them more knowledge than a platform like Twitter.
Eric Schnapper, the attorney for Taamneh, conceded that they were not alleging specific ways Twitter was used to carry out the terrorist attack, but rather general recruitment. Justice Ketanji Brown Jackson asked if it would be illegal to sell Osama bin Laden a phone without knowing it would be used for a terrorist specific terrorist act.
Schnapper said it would not be necessary to prove the phone was used for a specific terrorist act, because it “aids the terrorist enterprise.” He later conceded that alleging bin Laden did in fact use the phone to further his terrorist activity “would be the better way to plea it.” Still, he said, the potential terrorist actions “would be fairly implicit in his name,” he said.
The Supreme Court is expected to make a decision on the case by June.
The founder of the company behind the IRL social media app was charged with defrauding investors of $170 million in the company’s 2021 funding round, the Department of Justice said Wednesday.
A federal grand jury in Oakland federal court indicted Abraham Shafi, 38 of Hawaii, with wire fraud, securities fraud and obstruction in connection with the scheme, the DOJ said.
Shafi was the CEO of Get Together, the parent company of IRL. The company was valued at $1 billion after its 2021 Series C funding round. IRL, which shuttered in June 2023, was a platform for users to organize events and offline activities. It found some traction in 2018, ranking among Apple’s top social apps.
Shafi allegedly spent millions on incentive advertising to boost installs of the app leading up to the Series C while maintaining to investors that the company spent “very little” on getting new users, the DOJ said.
He then concealed the expense by invoicing it to another firm, the DOJ said.
The indictment also alleges that the CEO and his fiancée used investor funds for “luxury hotel stays, luxury clothing, purchases from home furnishing retailers, thousands of dollars for art classes, and hundreds of thousands of dollars for SHAFI’s wedding, including payments for wedding guests’ airfare and luxury hotels.”
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Shafi told CNBC in February 2018 that investors backed the company on its potential to compete with Facebook and Snapchat. Investors in IRL included Peter Thiel’s Founders Fund and the venture firm Floodgate.
Shafi’s co-founders at IRL included Scott Banister, the first board member of PayPal and an early investor in Facebook, among others.
Only Shafi was named in the DOJ indictment. He faces a max of 20 years in prison on each count, the DOJ said.
“Shafi took advantage of investors’ appetite for investments in the pre-IPO technology space and fraudulently raised approximately $170 million by lying about IRL’s business practices,” Monique Winkler, director of the SEC’s San Francisco Regional Office, said in a release at the time.
A news ticker outside Fox News headquarters reads: Grand jury votes to indict former President Donald Trump, at the News Corporation building in New York City, U.S., March 31, 2023.
Brendan Mcdermid | Reuters
In less than three days, college football will be showcasing one of its most-highly anticipated week one matchups ever, with top-ranked Texas heading on the road to play reigning national champion and third-ranked Ohio State.
Fox is airing the much-hyped game. YouTube TV subscribers may be out of luck.
Google‘s YouTube said on Monday it may remove channels like Fox Broadcast Network, Fox News and Fox Sports if the company is unable to reach a new agreement with Fox Corp. by 5 p.m. ET on Wednesday. The two sides are still in a standoff, putting YouTube TV customers at risk of missing out on major sporting events and hefty ad dollars in limbo.
For Google, the issue is how much Fox is charging for its content.
“Fox is asking for payments that are far higher than what partners with comparable content offerings receive,” YouTube wrote in its Monday blog post.
YouTube TV has roughly 9.4 million subscribers. Most notably for sports fans, Fox is the home for many upcoming football games, both college and pro. The NFL season begins next week, with Fox set to air games starting on Sunday, Sept. 7
YouTube pays broadcasters like Fox to carry their channels.
In addition to football, Fox shows Major League Baseball games, and the MLB regular season is entering its final stretch. Fox will be airing some playoff games that follow, as well as the World Series, which is scheduled to start in late October.
Brendan Carr, chair of the Federal Communications Commission, weighed in on Tuesday.
“Google removing Fox channels from YouTube TV would be a terrible outcome,” he said on X. “Millions of Americans are relying on YouTube to resolve this dispute so they can keep watching the news and sports they want — including this week’s Big Game: Texas @ Ohio State. Get a deal done Google!”
The Texas – Ohio State game has added intrigue as its Arch Manning’s first marquee start as quarterback for the top-ranked Longhorns.
The hefty roster of Fox programs may be enough for sports fans to turn off YouTube TV in favor of other options. One place subscribers could turn to is Fox One, Fox’s standalone streaming service, which just launched last week, ahead of the NFL season. Fox One costs $19.99 per month or $199.99 annually.
The base plan for YouTube TV costs $82.99 per month and includes over 100 live channels and unlimited cloud DVR. If Fox does go offline for an extended period of time, YouTube will give members a $10 credit, the Google company said.
YouTube recently overtook Netflix, which has a market cap of $518 billion, as the top streaming platform in terms of audience engagement.
While YouTube and Fox have set a deadline of Wednesday to reach a deal, it’s common for carriage disputes to result in a deadline extension that would give the parties more time to negotiate.
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Google has eliminated more than one-third of its managers overseeing small teams, an executive told employees last week, as the company continues its focus on efficiencies across the organization.
“Right now, we have 35% fewer managers, with fewer direct reports” than at this time a year ago, said Brian Welle, vice president of people analytics and performance, according to audio of an all-hands meeting reviewed by CNBC. “So a lot of fast progress there.”
At the meeting, employees asked Welle and other executives about job security, “internal barriers” and Google’s culture after several recent rounds of layoffs, buyouts and reorganizations.
Welle said the idea is to reduce bureaucracy and run the company more efficiently.
“When we look across our entire leadership population, that’s mangers, directors and VPs, we want them to be a smaller percentage of our overall workforce over time,” he said.
The 35% reduction refers to the number of managers who oversee fewer than three people, according to a person familiar with the matter. Many of those managers stayed with the company as individual contributors, said the person, who asked not to be named because the details are private.
Google CEO Sundar Pichai weighed in at the meeting, reiterating the need for the company “to be more efficient as we scale up so we don’t solve everything with headcount.”
Google eliminated about 6% of its workforce in 2023, and has implemented cuts in various divisions since then. Alphabet finance chief Anat Ashkenazi, who joined the company last year, said in October that she would push cost cuts “a little further.” Google has offered buyouts to employees since January, and the company has slowed hiring, asking employees to do more with less.
Regarding the buyouts, executives at the town hall said that a total of 10 product areas have presented “Voluntary Exit Program” offers. They’ve applied to U.S.-based employees in search, marketing, hardware and people operations teams this year.
Fiona Cicconi, Google’s chief people officer, said at last week’s meeting that between 3% and 5% of employees on those teams have accepted the buyouts.
“This has been actually quite successful,” she said, adding “I think we can continue it.”
Pichai said the company executed the voluntary buyouts after listening to employees, who said they preferred that route to blanket layoffs.
“It’s a lot of work that’s gone into implementing the VEP program, and I’m glad we’ve done it,” Pichai said. “It gives people agency, and I’m glad to see it’s worked out well.”
‘Wanting a career break’
Cicconi said one of the main reasons employees are taking the buyouts is because they want to take time off from work.
“It’s actually quite interesting to see who’s taking a VEP, and it’s people sort of wanting a career break, sometimes to take care of family members,” she said.
CNBC previously reported that the layoffs hurt morale as the company was downsizing while at the same time issuing blowout earnings and seeing its stock price jump. Alphabet’s shares are up 10% this year after climbing 36% in 2024 and 58% the year prior.
At another point in the town hall, employees asked if Google would consider a policy similar to Meta’s “recharge,” a month-long sabbatical that employees earn after five years at the company.
“We have a lot of leaves, not least our vacation, which is there for exactly that — resting and recharging,” said Alexandra Maddison, Google’s senior director of benefits.
She said the company is not going to offer paid sabbatical.
“We’re very confident that our current offering is competitive,” Maddison said.
Meta didn’t immediately respond to a request for comment.
Other executives jumped in to compare the two companies’ benefits.
“I don’t think they have a VEP at Meta by the way,” Cicconi said.
Pichai then asked, to some laughs from the audience, “Should we incorporate all policies of Meta while we’re at it? Or should we only pick and choose the few policies we like?”
“Maybe I should try running the company with all of Meta’s policies,” he continued. “No, probably not.”