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A bipartisan pair of senators reintroduced the Kids Online Safety Act on Tuesday with updates that aimed to address concerns that the bill could inadvertently cause more harm to the young internet users it seeks to protect. But some activists who raised those issues say the changes are still insufficient.

The bill aims to make the internet a safer place for kids to access by putting the onus on social media companies to prevent and mitigate harms that might come from their services. The new version of the bill defines a set list of harms that platforms need to take reasonable steps to mitigate, including by preventing the spread of posts promoting suicide, eating disorders, substance abuse and more. It would require those companies to undergo annual independent audits of their risks to minors and require them to enable the strongest privacy settings by default for kids.

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Congress and President Joe Biden have made clear online protections for children are a key priority, and KOSA has become one of the leading bills on the subject. KOSA has racked up a long list of more than 25 co-sponsors and the earlier version of the bill passed unanimously out of the Senate commerce committee last year. The new version of the bill has gained support from groups such as Common Sense Media, the American Psychological Association, the American Academy of Pediatrics and the Eating Disorders Coalition.

At a virtual press conference on Tuesday, Sen. Richard Blumenthal, D-Conn., who introduced the bill alongside Sen. Marsha Blackburn, R-Tenn., said that Senate Majority Leader Chuck Schumer, D-N.Y., is “a hundred percent behind this bill and efforts to protect kids online.”

While Blumenthal acknowledged it’s ultimately up to Senate leadership to figure out timing, he said, “I fully hope and expect we’ll have a vote this session.”

A Schumer spokesperson did not immediately respond to a request for comment.

Late last year, dozens of civil society groups warned Congress against passing the bill, warning it could further endanger young internet users in different ways. For example, the groups worried the bill would add pressure for online platforms to “over-moderate, including from state Attorneys General seeking to make political points about what kind of information is appropriate for young people.”

Blumenthal and Blackburn made several changes to the text in response to critiques from outside groups. They sought to more carefully tailor the legislation to limit the duty of care requirements for social media platforms to a specific set of potential harms to mental health based on evidence-backed medical information.

They also added protections for support services like the National Suicide Hotline, substance abuse groups and LGBTQ youth centers to ensure they aren’t unintentionally hampered by the bill’s requirements. Blumenthal’s office said it did not believe the duty of care would have applied to those sorts of groups, but opted to clarify it regardless.

But the changes have not been enough to placate some civil society and industry groups.

Evan Greer, director of digital rights nonprofit Fight for the Future, said Blumenthal’s office never met with the group or shared the updated text in advance of the introduction despite multiple requests. Greer acknowledged the co-sponsors’ offices met with other groups, but said in an emailed statement that “it seems they intentionally excluded groups that have specific issue-area expertise in content moderation, algorithmic recommendation, etc.”

“I’ve read through it and can say unequivocally that the changes that have been made DO NOT address the concerns that we raised in our letter,” Greer wrote. “The bill still contains a duty of care that covers content recommendation, and it still allows state Attorneys General to effectively dictate what content platforms can recommend to minors.”

“The ACLU remains strongly opposed to KOSA because it would ironically expose the very children it seeks to protect to increased harm and increased surveillance,” ACLU Senior Policy Counsel Cody Venzke said in a statement. The group joined the letter warning against its passage last year.

“KOSA’s core approach still threatens the privacy, security, and free expression of both minors and adults by deputizing platforms of all stripes to police their users and censor their content under the guise of a ‘duty of care,'” Venzke added. “To accomplish this, the bill would legitimize platforms’ already pervasive data collection to identify which users are minors when it should be seeking to curb those data abuses. Moreover, parental guidance in minors’ online lives is critical, but KOSA would mandate surveillance tools without regard to minors’ home situations or safety. KOSA would be a step backwards in making the internet a safer place for children and minors.”

At the press conference, in response to a question about Fight for the Future’s critiques, Blumenthal said the duty of care had been “very purposefully narrowed” to target certain harms.

“I think we’ve met that kind of suggestion very directly and effectively,” he said. “Obviously, our door remains open. We’re willing to hear and talk to other kinds of suggestions that are made. And we have talked to many of the groups that had great criticism and a number have actually dropped their opposition, as I think you’ll hear in response to today’s session. So I think our bill is clarified and improved in a way that meets some of the criticism. We’re not going to solve all of the problems of the world with a single bill. But we are making a measurable, very significant start.”

The bill also faced criticism from several groups that receive funding from the tech industry.

NetChoice, which has sued California over its Age-Appropriate Design Code Act and whose members include Google, Meta and TikTok, said in a press release that despite lawmakers’ attempts to respond to concerns, “unfortunately, how this bill would work in practice still requires an age verification mechanism and data collection on Americans of all ages.”

“Working out how young people should use technology is a difficult question and has always been best answered by parents,” NetChoice Vice President and General Counsel Carl Szabo said in a statement. “KOSA instead creates an oversight board of DC insiders who will replace parents in deciding what’s best for children.”

“KOSA 2.0 raises more questions than it answers,” Ari Cohn, free speech counsel TechFreedom, a think tank that’s received funding from Google, said in a statement. “What constitutes reason to know that a user is under 17 is entirely unclear, and undefined by the bill. In the face of that uncertainty, platforms will clearly have to age-verify all users to avoid liability—or worse, avoid obtaining any knowledge whatsoever and leave minors without any protections at all.”

“Protecting young people online is a broadly shared goal. But it would contradict the goals of bills such as this to impose compliance obligations that undermine the privacy and safety of teens,” said Matt Schruers, president of the Computer & Communications Industry Association, whose members include Amazon, Google, Meta and Twitter. “Governments should avoid compliance requirements that would compel digital services to collect more personal information about their users — such as geolocation information and a government-issued identification — particularly when responsible companies are instituting measures to collect and store less data on customers.”

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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Amazon to halt some of its DEI programs: Internal memo

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Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

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