Day: March 2, 2022

A consortium of U.S. states announced on Wednesday a joint investigation into TikTok’s possible harm to young users of the platform, which has boomed in popularity, especially among children. 

Officials across the United States have launched their own investigations and lawsuits against Big Tech giants as new national regulations have failed to pass, partly because of partisan gridlock in Congress. 

The consortium of eight states will look into the harm TikTok can cause to its young users and what the company knew about such possible harm, California Attorney General Rob Bonta said a statement.  

Leading the investigation is a coalition of attorneys general from California, Florida, Kentucky, Massachusetts, Nebraska, New Jersey, Tennessee and Vermont.

The investigation will focus, among other things, on TikTok’s techniques to boost young user engagement, including efforts to increase the frequency and duration of children’s use. 

“We don’t know what social media companies knew about these harms and when,” Bonta said in a statement.  

“Our nationwide investigation will allow us to get much-needed answers and determine if TikTok is violating the law in promoting its platform to young Californians,” he added. 

TikTok’s short-form videos have boomed in popularity with the youngest users, prompting growing concern from parents over the potential that their children could develop unhealthy use habits or be exposed to harmful content. 

TikTok welcomes investigation

The platform welcomed the investigation as a chance to provide information on its efforts to protect users. 

“We care deeply about building an experience that helps to protect and support the well-being of our community,” TikTok’s statement said. 

“We look forward to providing information on the many safety and privacy protections we have for teens,” it added. 

Social media’s impact on young users came under renewed scrutiny last year when Facebook whistleblower Frances Haugen leaked a trove of internal company documents raising questions over whether it had prioritized growth over users’ safety. 

The documents were given to lawmakers, a consortium of journalists and U.S. regulators by Haugen, who has become a figurehead of criticism of the leading social media platform. 

Despite media attention on the issue and hearings before U.S. lawmakers, no new rules have gotten close to being enacted on the national level. 

States have instead proceeded with their own efforts to look into Big Tech companies. 

For example, a consortium of U.S. states announced a joint probe in November of Instagram’s parent company, Meta, for promoting the app to children despite allegedly knowing its potential for harm. The consortium of attorneys general, states’ top law enforcers and legal advisers, included some of the same states as Wednesday’s probe, like California and Florida.

Instagram sparked fierce criticism for its plans to make a version of the photo-sharing app for younger users. It later halted development. 
…

Some of America’s best-known companies including Apple, Google, Ford, Harley-Davidson and Exxon Mobil rebuked and rejected Russia for its invasion of Ukraine, under steady pressure from investors and consumers decrying the violence. 

Late Tuesday, Apple said it had stopped sales of iPhones and other products in Russia, adding that it was making changes to its Maps app to protect civilians in Ukraine. 

Tech firms including Alphabet’s Google dropped Russian state publishers from their news, and Ford Motor, with three joint venture factories in Russia, told its Russian manufacturing partner it was suspending operations in the country. Motorcycle maker Harley-Davidson suspended shipments of its bikes. 

Exxon wants out of Russia

Exxon Mobil Corp said it would discontinue operations in Russia and was taking steps to exit the Sakhalin-1 venture, following in the steps of British energy giants Shell and BP, Russia’s biggest foreign investor. 

Many corporations have been unusually clear in their condemnation of Russia. 

“We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence,” Apple said in a statement. 

The steady drum beat of companies taking a stance increased later in the day as rockets struck major cities in Ukraine. 

“Ford is deeply concerned about the invasion of Ukraine and the resultant threats to peace and stability. The situation has compelled us to reassess our operations in Russia,” Ford said, adding to several days of announcements by global car companies. 

“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” said Exxon, adding it will not invest in new developments in Russia. 

Boeing suspends support program

Boeing suspended parts, maintenance and technical support services for Russian airlines, a Politico reporter tweeted. The U.S. planemaker suspended major operations in Moscow and will also temporarily closed office in Kyiv, the tweet said. Boeing did not immediately respond to a request for comment. 

Restrictions from the West have hit the Russian economy hard, with the ruble falling as much as a third to a record low. Financial isolation is rising as shipping companies say they will not serve Russian ports. 

The U.S. government is expected to ban Russian flights from American airspace as soon as Wednesday, government and industry officials told Reuters. 

And a boom of investor interest in environmental, social and governance (ESG) factors is making it more difficult for those companies that sit on the sidelines. 

Russian companies are in particular peril with such Western investors, since they often are not open to talks to change their behavior, said TJ Kistner, vice president at Segal Marco Advisors, a large U.S. pension consultant. 

Investors continue to leave

Western investors may respond by pulling out. 

“The only course of action for many is simply divestment,” Kistner said. 

Moscow has responded by temporarily curbing foreign investors from selling Russian assets. 

Big Tech companies also are continuing efforts to stop Russian forces from taking advantage of their products. 

Apple said it had blocked app downloads of some state-backed news services outside of Russia. 

Microsoft earlier said it would remove Russian state-owned media outlet RT’s mobile apps from its Windows App store and ban ads on Russian state-sponsored media. Google barred RT and other Russian channels from receiving money for ads on websites, apps and YouTube videos, similar to a move by Facebook. 
…