Social media stocks were under great pressure following the ban of outgoing President Trump’s accounts over his incitement of Wednesday’s Capitol Hill siege.
Twitter permanently banned Trump from its platform which Facebook suspended Trump’s account indefinitely. Twitter first banned the president’s account temporarily on Wednesday, but banned it permanently on Friday.
Parler, the right-wing platform is also facing suspension from other players. Apple store and Amazon’s web hosting service have banned Parler from their platforms. Similarly, Google’s app store banned Parler on Friday.
Instagram, Reddit, Spotify, Stripe, TikTok, and tWitch have also been restricting Trump. Currently, these platforms have joined in the ban against Parler.
Terms of Service Violation
The move of banning President Trump and Parler by multiple social media platforms is based on the fact the two had violated their terms of service. By inciting violence, Trump and Parler had crossed the line.
Apple and Google have given Parler an ultimatum of 24 hours to come up with a “remediation plan” if it wants to get back online. According to Amazon, Parler was a “very real risk” to the public.
Social Media Platforms May Count Losses
According to critics, while the suspension efforts by social media platforms are plausible, they shouldn’t be celebrated just yet. This is because these companies have profited off President Trump’s controversial tweets as well as his huge social media following.
Critics claim that Twitter was offended by tweets where the Trump mentioned that he wouldn’t be attending the inauguration while another said that his voters will have “a giant voice” in the future.
Facebook shares fell by about 1% on Monday after advertisers boycotted the social network over condoning misinformation and hate speech. The stock decline has cost the social media giant about $60 billion in market value. Companies like Coca-cola, Diageo, PepsiCo, Starbucks, Unilever, and Verizon have all halted advertising n Facebook.
Facebook has so far tweaked its policies to ensure accurate information about voting, ban hateful language, and tag posts that violate its standards.
The Communications Decency Act
Under section 230 of the Communications Decency Act, the social media companies have the right to allow or ban whomever or whatever they want on their platforms. According to critics, this controversial law allows websites to have a legal shield for posts that may condone violence or hate speech as it has been experienced in the past. In that case, critics do not approve the ban as the best solution for the current situation.