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  • Major Supreme Court cases to watch in the new term | CNN Politics

    Major Supreme Court cases to watch in the new term | CNN Politics

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    CNN
     — 

    Looking at an upcoming Supreme Court term from the vantage point of the first Monday in October rarely tells the full story of what lies ahead, but the docket already includes major cases concerning the intersection between the First Amendment and social media, gun rights, racial gerrymandering and the power of the executive branch when it comes to regulation.

    The court will still determine if it will hear oral arguments on issues such as medication abortion and transgender rights, not to mention the possibility of a flurry of emergency requests related to the 2024 election.

    Here are some of the key cases on which the court will hear oral arguments this term:

    After the Supreme Court issued a major decision last year expanding gun rights nationwide, lower courts began reconsidering hundreds of firearms regulations across the country under the new standard crafted by Justice Clarence Thomas that a gun law passes legal muster only if it is rooted in history and tradition.

    On the heels of that decision, a federal appeals court invalidated a federal law that bars an individual who is subject to a domestic violence restraining order from possessing a firearm. That law, the 5th US Circuit Court of Appeals ruled, “is an outlier that our ancestors would never have accepted.”

    The Biden administration has appealed, saying the ruling “threatens grave harms for victims of domestic violence.”

    In 2019, nearly two-thirds of domestic homicides in the United States were committed with a gun, according to Everytown for Gun Safety.

    Lawyers for Zackey Rahimi, a man who was prosecuted under the law in 2020 after a violent altercation with his girlfriend, have urged the justices to let the lower court opinion stand, arguing in part that there is no law from the founding era comparable to the statute at hand.

    Racial gerrymandering: South Carolina congressional maps

    Justices will consider a congressional redistricting plan drawn by South Carolina’s Republican-controlled legislature in the wake of the 2020 census. Critics say it was designed with discriminatory purpose and amounts to an illegal racial gerrymander.

    The case focuses the court’s attention once again on the issue of race and map drawing and comes after the court ordered Alabama to redraw the state’s congressional map last term to account for the fact that the state is 27% black. The decision, penned by Chief Justice John Roberts, surprised liberals who feared the court was going to make it harder for minorities to challenge maps under Section 2 of the historic Voting Rights Act.

    In the latest case, the South Carolina State Conference of the NAACP and a Black voter named Taiwan Scott, are challenging the state’s congressional District 1 that is located along the southeastern coast and is anchored in Charleston County. Although the district consistently elected Republicans from 1980 to 2016, in 2018 a Democrat was elected in a political upset, though a Republican recaptured the seat in 2020.

    The person who devised the map has testified that he was instructed to make the district “more Republican leaning,” but that he did not consider race. He did, however, acknowledge that he examined racial data after drafting each version and that the Black voting age population of the district was likely viewed during the drafting process.

    A three-judge district court panel struck down the plan in January, saying that race had been the predominant motivating factor. “To achieve a target of 17% African American population,” the court said, “Charleston County was racially gerrymandered and over 30,000 African Americans were removed from their home district.”

    Expert explains why Justice Thomas’ gifts from wealthy friends are problematic

    In the latest attack against the so-called administrative state, the justices are considering whether to overturn decades old precedent to scale back the power of federal agencies, impacting how the government tackles issues such as climate change, immigration, labor conditions and public health.

    At issue is an appeal from herring fishermen in the Atlantic who say the National Marine Fisheries Service does not have the authority to require them to pay the salaries of government monitors who ride aboard the fishing vessels.

    In agreeing to hear the case, the justices signaled they will reconsider a 1984 decision – Chevron v. Natural Resources Defense Council – that sets forward factors to determine when courts should defer to a government agency’s interpretation of the law. First, they examine a statute to see if Congress’ intent is clear. It if is – then the matter is settled. But if there is ambiguity – the court defers to the agency’s expertise.

    Solicitor General Elizabeth Prelogar told the justices that the agency was acting within the scope of its authority under the Magnuson-Stevens Fishery Conservation and Management Act and said the fishermen are not responsible for all the costs. The regulation was put in place to combat overfishing of the fisheries off the coasts of the US.

    Representing the fishermen, former Solicitor General Paul Clement argues that the government exceeded its authority and needs direct and clear congressional authorization to make such a demand. “The ‘net effect’ of Chevron,” Clement said, is that it “incentives a dynamic where Congress does far less than the Framers anticipated, and the executive branch is left to do far more by deciding controversial issues via regulatory fiat”

    For the second time in recent years, the court is taking aim at a watchdog agency created to combat unfair and deceptive practices against consumers, in a case that could deal a fatal blow to the future of the agency and send reverberations throughout the financial services industry.

    At the center of the case at hand is the Consumer Financial Protection Bureau – an independent agency set up in the wake of the 2008 financial meltdown that works to monitor the practices of lenders, debt collectors and credit rating agencies.

    Congress chose to fund the CFPB from outside the annual appropriations process to ensure its independence. As such, the agency receives its funding each year from the earnings of the Federal Reserve System. But the conservative 5th US Circuit Court of Appeals held last year that the funding scheme violates the Appropriations Clause of the Constitution, that, the court said “ensures Congress’ “exclusive power over the federal purse.”

    According to the CFPB, the agency has obtained more than $18.9 billion in ordered relief, including restitution and canceled debts, for more than 195 million consumers, and more than $4.1 billion in penalties, in actions brought by the agency against financial institutions and individuals that have broken federal consumer financial protection laws.

    A handful of other agencies have similar funding schemes including the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.

    Three years ago, the Supreme Court limited the independence of the CFPB by invalidating its leadership structure. A 5-4 court held that the structure violated the separation of powers because the president was restricted from removing the director, even if they had policy disagreements.

    Agency regulatory authority: Securities and Exchange Commission

    The justices are looking at the in-house enforcement proceedings of the US Securities and Exchange Commission in another case that invites the conservative majority to pare back the regulatory authority of federal agencies.

    The court’s decision could impact whether the SEC and other agencies can conduct enforcement proceedings in-house, using administrative courts staffed with agency employees, or whether such actions must be brought in federal court.

    On one side are critics of such agency courts who argue that they allow federal employees to serve as prosecutors, judges and jury, issuing rulings that could particularly hurt small businesses. On the other side are those who point out that several agencies, including the Social Security Administration, have such internal proceedings because the topics are often complex and the agency has more expertise than a federal judge.

    The case arose in 2013 after the SEC brought an enforcement action against George Jarkesy, who had established two hedge funds with his advisory firm, Patriot28, for securities fraud.

    The 5th Circuit ruled that the SEC’s proceedings deprive individuals of their Seventh Amendment right to a civil jury. In addition, the court said that Congress had improperly delegated legislative power to the SEC, which gave the agency unconstrained authority at times to choose the in-house administrative proceeding rather than filing suit in district court.

    In December, the court will examine the historic multibillion-dollar Purdue Pharma bankruptcy settlement with several states that would ultimately offer the Sackler family broad protection from OxyContin-related civil claims.

    Until recently, Purdue was controlled by the Sackler family, who withdrew billions of dollars from the company before it filed for bankruptcy. The family has now agreed to contribute up to $6 billion to Purdue’s reorganization fund on the condition that the Sacklers receive a release from civil liability.

    The Biden administration, representing the US Trustee, the executive branch agency that monitors the administration of bankruptcy cases, has called the plan “exceptional and unprecedented” in court papers, noting that lower courts have divided on when parties can be released from liability for actions that caused societal harm.

    “The plan’s release ‘absolutely, unconditionally, irrevocably, fully, finally, forever and permanently releases’ the Sacklers from every conceivable type of opioid-related civil claim – even claims based on fraud and other forms of willful misconduct that could not be discharged if the Sacklers filed for bankruptcy in their individual capacities,” Prelogar argued in court papers.

    For the second year running, the justices will leap into the online moderation debate and decide whether states can essentially control how social media companies operate.

    If upheld, laws from Florida and Texas could open the door to more state legislation requiring platforms such as Facebook, YouTube and TikTok to treat content in specific ways within certain jurisdictions – and potentially expose the companies to more content moderation lawsuits.

    It could also make it harder for platforms to remove what they determine is misinformation, hate speech or other offensive material.

    “These cases could completely reshape the digital public sphere. The question of what limits the First Amendment imposes on legislatures’ ability to regulate social media is immensely important – for speech, and for democracy as well,” said Jameel Jaffer, the executive director of Columbia University’s Knight First Amendment Institute, in a statement.

    “It’s difficult to think of any other recent First Amendment cases in which the stakes were so high,” Jaffer added.

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  • Microsoft Outlook will soon write emails for you | CNN Business

    Microsoft Outlook will soon write emails for you | CNN Business

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    New York
    CNN
     — 

    Artificial intelligence could soon be writing more company emails in Microsoft Outlook, as the company expands its rollout of AI tools for corporate users.

    The Microsoft 365 Copilot tool – “your everyday AI companion,” as the company bills it – will help users write their emails to “keep your sentences concise and error-free.” The tool also summarizes long email threads to quickly draft suggested replies.

    Users with Microsoft 365 Personal or Family subscriptions will get more advanced AI help through Microsoft Editor, an intelligent writing assistant. The update will include suggested edits for “clarity, conciseness, inclusive language and more” to help workers create more “polished and professional” emails, according to a blog post from the company in September.

    The company said the tool will be available to more corporate clients starting on November 1. It has already been in months-long testing with customers including Visa, General Motors, KPMG and Lumen Technologies.

    In March, Microsoft outlined its plans to bring artificial intelligence to its most recognizable productivity tools, including Outlook, PowerPoint, Excel and Word, with the promise of changing how millions do their work every day. The addition of its AI-powered “copilot” – which will help edit, summarize, create and compare documents – is built on the same technology that underpins ChatGPT.

    In addition to writing emails, Microsoft 365 users will be able to summarize meetings and create suggested follow-up action items, request to create a specific chart in Excel, and turn a Word document into a PowerPoint presentation in seconds.

    Corporate customers will also get to use Microsoft 365 Chat, previously called Business Chat, which can scan the internet and employee emails, meetings, chats and files, to behave as a sort of personalized secretary.

    The expansion will come less than a year after OpenAI publicly released viral AI chat tool ChatGPT, which stunned many users with its impressive ability to generate original essays, stories and song lyrics in response to user prompts. The initial wave of attention on the tool helped renew an arms race among tech companies to develop and deploy similar AI tools in their products.

    In the months since, many other companies have rolled out features underpinning or similar to the technology. Microsoft rival Google, for example, has also brought AI to its productivity tools, including Gmail, Sheets and Docs.

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  • Modern romance: falling in love with AI | CNN Business

    Modern romance: falling in love with AI | CNN Business

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    New York
    CNN
     — 

    Alexandra is a very attentive girlfriend. “Watching CUBS tonight?” she messages her boyfriend, but when he says he’s too busy to talk, she says, “Have fun, my hero!”

    Alexandra is not real. She is a customizable AI girlfriend on dating site Romance.AI.

    As artificial intelligence seeps into seemingly every corner of the internet, the world of romance is no refuge. AI is infiltrating the dating app space – sometimes in the form of fictional partners, sometimes as advisor, trainer, ghostwriter or matchmaker.

    Established players in the online dating business like Tinder and Hinge are integrating AI into their existing products. New apps like Blush, Aimm, Rizz and Teaser AI (most of them free or with many free features) offer completely new takes on virtual courtship. Some use personality tests and analysis of a user’s physical type to train AI-powered systems – and promise higher chances of finding a perfect match. Others apps act as Cyrano de Bergerac, employing AI to whip up the most appealing response to a potential match’s query: ‘What’s your favorite food? or “a typical Sunday?”

    Around half of all adults under 30 have used a dating site or app, according to 2023 Pew Research findings – but nearly half of users report their experience as being negative. Empty conversations, few matches and endless swiping leave many users single and unhappy with apps – problems that many in the AI dating app field say could be solved with the technology, making people less lonely and fostering easier, deeper connections.

    Of course, the average online dater now has other issues to deal with, having to wonder if the person they are are speaking with might be relying entirely on AI-generated conversation. And is it even possible that a computer can identify a potential love connection? Is it a way of cheating the dating game?

    “It’s like saying using a word processor is like cheating on generating a novel. In so many ways this is just a new tool that enables people to be faster and more creative. AI is just honestly no different from sending a friend a gif or a meme. You’re taking existing content, and you’re repurposing it to connect with somebody,” Dmitri Mirakyan, co-founder of AI dating conversation app YourMove.AI, told CNN. “The world’s becoming a more lonely place, and I think AI could make that easier and better for people.”

    And many people seem ready for AI to take part in their online dating life. A March study by cybersecurity and digital privacy company Kaspersky found 75% of dating app users are willing to use ChatGPT, an AI-powered chatbot, to deliver the perfect line.

    “There is a growing fatigue with dating apps right now as there is a lot of pressure on people to be ‘original’ and cut through the noise created by the continuous choice being offered to single people – unfortunately dating has become a numbers game,” Crystal Cansdale, dating expert at global dating app Inner Circle, commented on the study.

    Founders of the new apps say they are doing a fair share of good. Here are a few of the ways AI apps are now trying to help you fall in love:

    Try Rizz.app, Teaser AI or YourMove.AI.

    Founders and designers of these apps say people find starting and keeping conversations going the most challenging part of the process. “Dating app conversations are exhausting,” reads YourMove.AI’s homepage. “We can make it easier. So you can spend less time texting, and more time dating.”

    Rizz.app and YourMove.AI allow users to upload words or screenshots, receiving a witty AI-generated response to be used either to create their own dating app profile, respond to someone else’s or just keep a conversation going. Mirakyan says he was hoping to help people like himself who have struggled in social situations.

    “I was a really freaking awkward kid…I couldn’t really read social cues, but I remember reading this book called ‘Be More Chill’ about a computer that you could put into your ear that would tell you what to say so that you could sound cool and fit in,” Mirakyan told CNN. “It feels like it’s an opportunity to really make a difference with this fairly large subset of people that for various reasons find the current social environment challenging.”

    Teaser.AI is a new stand-alone dating app from the makers of viral camera app Dispo, and it adds an unusual twist. Users build the average profile – but also select personality traits for their AI bot they train. (Options include “traditional,” “toxic,” and “unhinged.”) When matching with another person, users first get to read a conversation between their two AIs they’ve created to “simulate [what] a potential conversation between you two might look like,” according to the app. Once a human messages, the bots takes a back seat.

    Woman using mobile phone home STOCK

    “We see it as an improvement, a tweak of the current dating app ecosystem,” Teaser.AI co-Founder and CEO Daniel Liss told CNN. “So many of those apps it feels are not really designed to get you out there meeting people. They’re designed to keep you on the app for as long as possible. So for us, we view this technology as a way to give people a nudge… just starting that conversation and to creating connection.”

    Find out on dating apps Iris and Aimm.

    These apps are among those using AI technology to better pair potential couples, relying on gathered data to determine how compatible two people are.

    Dating app Iris is all about AI-determined mutual attraction. It initiates new members by putting them through “training” where they are shown faces of “people” of their desired gender – some stock images, others AI-generated – and prompted to hit “Pass,” “Maybe,” or “Like.” The app uses the information to learn a user’s physical type, then only offers potential matches with a high data-backed chance of mutual attraction and lower odds of rejection.

    Also hoping that AI can find better matches is Aimm, a full service digital matchmaker that uses a virtual assistant to perform intense personality assessments before conducting a matchmaking process to find an optimal match. Founder Kevin Teman says the technology is really good at putting two people together who have the possibility to fall in love – but that it can only go so far.

    “The tug of war that I see is thinking ‘how can a computer be able to know what real human love is,’ and the way people assess whether they’re in love with somebody may not be able to translate perfectly into a machine,” Teman told CNN.

    Try Blush or RomanticAI. These startups offer an array of AI potential matches, digital girlfriends and boyfriends that users can chat with.

    Both apps market themselves as places to practice relationship skills, giving users a chance to converse with bots in a romantic environment. Blush uses a traditional dating app set-up, letting users swipe, chat with matches and even go on virtual dates. Before entering the app, users get a warning: “Be aware that AI can say triggering, inappropriate, or false things.”

    Blush reports that their audience is mostly men and largely people in their early 20s who are struggling to connect romantically with others. “A lot of people reported that exploring different romantic relationships or dating scenarios with AI really helped them first boost their own confidence and feel like they feel more prepared to be dating, which I think especially after COVID was definitely a problem for many of us,” Blush’s chief product officer Rita Popova told CNN.

    Romantic.AI is set up more like a chat room, offering several male and female bots to choose from- though there is a much larger selection of female options, including Mona Lisa and the Ancient Egyptian queen Nefertiti. The bots have bios with interests, career and body type, giving users a multi-faceted idea of a person while chatting.

    It creates a “safe space for any kind of desire, any kind of sexuality relief or something like that. AI is giving the ultimate acceptance of whatever you want to bring over there,” COO Tanya Grypachevskaya told CNN.

    RomanticAI has over one million monthly users using the app for over an hour a day on average, according to the company.

    One user left a rave review after using the app to find closure after a breakup. “He created his custom-made character with the traits similar in personality as his girlfriend. He talked to it and he talked and he was able to tell all of the things he wanted to tell but didn’t have the opportunity before. So the whole review was about ‘guys, thank you so much. It really gave me an opportunity to close this chapter of my life and move on,” said Grypachevskaya.

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  • X has ditched a political misinformation reporting feature, researchers say | CNN Business

    X has ditched a political misinformation reporting feature, researchers say | CNN Business

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    CNN
     — 

    X, the social media company formerly known as Twitter, has scrapped a feature that lets users self-report political misinformation on the platform, a research group says, marking the latest safety-focused guardrail that X has rolled back since billionaire Elon Musk took the helm.

    The move was first spotted by an Australia-based digital policy think tank, Reset Australia. The group of researchers sent an open letter to X warning of the potential harms this can cause as it came just weeks ahead of a major referendum vote on whether to change the Australian constitution to establish an Indigenous advisory group with a direct line to government.

    “There now appears to be no channel to report electoral misinformation when discovered on your platform,” the letter from Reset Australia states. “It is extremely concerning that Australians would lose the ability to report serious misinformation weeks away from a major referendum.”

    The rollback also comes as political campaigning for the United States 2024 presidential election ramps up, and concerns about the spread of misinformation online remains a keystone issue ahead of the US vote.

    X did not immediately respond to CNN’s request for comment Wednesday morning. X users, notably, can still report content on the platform for violations in other categories — such as “Hate,” “Abuse & Harassment,” and “Violent Speech,” among other issues. Musk has also long touted the platforms “Community Notes” feature, which lets users add context they think is missing to posts.

    The user-reporting feature initially launched as a test for a small group of users in the US, South Korea and Australia, X (then called Twitter) announced in August 2021. The feature allowed users to report a post as “it’s misleading” when they encountered problematic political content. In January 2022, the company said it was expanding the misinformation reporting feature to more countries and users.

    Musk’s rocky takeover of Twitter, meanwhile, was officially completed in October 2022.

    With Musk at the helm, the platform has also made other changes, such as reinstating controversial accounts, including those belonging to former US President Donald Trump and rapper Kanye West. Musk has long opined concerns about perceived censorship on the platform and its need to focus on promoting what he views as “free speech.”

    In other recent changes to its approach to political content, X announced last month that it will again allow political ads on the platform — for the first time since 2019 — and said that it is hiring for its safety and election teams ahead of the 2024 US presidential vote.

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  • TikTok steps up efforts to counter misinformation about Israel-Hamas war | CNN Business

    TikTok steps up efforts to counter misinformation about Israel-Hamas war | CNN Business

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    London
    CNN
     — 

    TikTok is stepping up efforts to counter misinformation, incitement to violence and hate relating to the Israel-Hamas war on its online platform, it announced Sunday, days after the European Union (EU) warned social media companies they risked falling foul of the bloc’s content moderation laws.

    As part of its measures, TikTok is launching a command center to coordinate the work of its “safety professionals” around the world, improving the software it uses to automatically detect and remove graphic and violent content, and hiring more Arabic and Hebrew speakers to moderate content.

    TikTok said in a statement that, following the brutal attack by Hamas on Israeli civilians on October 7, it had “immediately mobilized significant resources and personnel to help maintain the safety of [its] community and integrity of [its] platform.”

    “We do not tolerate attempts to incite violence or spread hateful ideologies,” it added. “We have a zero-tolerance policy for content praising violent and hateful organizations and individuals.”

    The firm, owned by China’s ByteDance, said it had already removed more than 500,000 videos and shut down 8,000 livestream videos from the “impacted region” since the Hamas attack.

    As the conflict escalates — Israel has blocked the provision of electricity, food, fuel and water to Gaza, and has been signaling it is preparing for a ground invasion of the area — millions have turned to social media for updates, while misinformation has proliferated on these sites.

    One recent TikTok video, seen by more than 300,000 users and reviewed by CNN, promoted conspiracy theories about the origins of the Hamas attack, including false claims that it was orchestrated by the media.

    Last week, the EU told social media companies they needed to better protect “children and teenagers from violent content and terrorist propaganda” on their platforms.

    EU Commissioner Thierry Breton wrote to TikTok Thursday, in a letter shared on X, the platform formerly known as Twitter, saying the company had 24 hours to detail the steps it was taking to comply with EU rules on content moderation. Breton has sent similar letters to X, Google and Meta, the owner of Instagram and Facebook.

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  • X is ‘close to breakeven’ says CEO Linda Yaccarino | CNN Business

    X is ‘close to breakeven’ says CEO Linda Yaccarino | CNN Business

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    New York
    CNN
     — 

    X CEO Linda Yaccarino, leader of the platform formerly known as Twitter, said the company is keeping an eye on new competitor Threads, despite the sharply slowing growth of the rival app from Meta.

    “Threads did jump in with a ton of hype and a launch pad from their Instagram users … [but] it’s dropped off dramatically,” Yaccarino told CNBC Thursday in her first interview as CEO of the company now called X.

    “But you can never, ever take your eye off any competition because they’ll continue iterating and as much as the launch has stalled, we’re keeping an eye on everything that they’re doing.”

    Still, Yaccarino said X remains largely focused on its own future as the company chases profitability, and that Threads may be looking at its past.

    “What we can see is that [Threads] may be building to what Twitter was — enter rebrand, enter X — and we’re focused on what X will be, and it’s an entirely different roadmap and vision,” she said.

    Staving off competition from Meta’s Threads and other rival platforms is just one of the things Yaccarino is now tasked with after taking over from owner Elon Musk as X’s CEO in June. In just her first two months, the company underwent a massive rebrand from Twitter to X in hopes of transforming into an “everything app” similar to China’s WeChat, and has continued to warn of challenges reviving its core advertising business. Musk, who is now the company’s chief technology officer, has also been preparing for a cage fight with Meta CEO Mark Zuckerberg.

    Yaccarino joined the company after months of turmoil caused by Musk’s takeover, including mass layoffs, controversial policy decisions and various legal battles.

    But on Thursday, she doubled down on the company’s vision and explained why it retired its highly recognized brand name.

    “The rebrand really represented a liberation from Twitter, a liberation that allows us to evolve past a legacy mindset and to reimagine how everyone … around the world is going to change how we congregate, how we transact, all in one place,” Yaccarino said, adding that users would soon be able to make video calls and payments through the platform.

    “It’s developing into this global town square that is fueled by free expression, where the public gathers in real time,” she said.

    Yaccarino said that the company is returning to growth mode after months of slashing costs through ongoing layoffs, infrastructure and office space reductions and, in some cases, allegedly holding back on paying its bills and employee severance. Twitter’s staff has shrunk from nearly 8,000 employees to just around 1,500 workers since Musk’s takeover, Yaccarino said.

    “Are we hiring? Yes,” Yaccarino said. “I get to come in and shift from this cost discipline to growth … the future is bright.”

    Threatening to stand in the way of that evolution are the company’s very real business challenges. Musk last month disclosed in a post that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform is still losing money. After Musk bought Twitter for $44 billion last October, the company’s value now stands around $15 billion, according to a May disclosure from a Fidelity fund.

    Yaccarino, a former marketing executive with NBCUniversal, was brought on to Twitter in part to help revive its advertising business. And she said on Thursday that the company is “close to breakeven.”

    “Coca Cola, Visa, State Farm is a huge partner, they’re coming back — the last bunch of weeks, continued revenue growth,” Yaccarino said.

    But maintaining the ad business has been an uphill battle for the site since Musk’s takeover. Hordes of advertisers halted spending on the platform over concerns about content moderation, mass layoffs and general uncertainty about the company’s future. Musk has also defended his own controversial tweets, telling CNBC in May, “I’ll say what I want, and if the consequence of that is losing money, so be it.”

    Yaccarino pointed to the company’s “freedom of speech, not freedom of reach” policy that aims to limit the reach of so-called lawful but awful content on the platform and to protect brands from having their ads appear alongside such content. X on Tuesday rolled out additional brand safety controls for advertisers, including the ability to avoid having their ads show next to “targeted hate speech, sexual content, gratuitous gore, excessive profanity, obscenity, spam, drugs.”

    “I wrap my security blanket around you, my brand and my CMO, and say your ads will only air next to content that is appropriate for you,” Yaccarino said Thursday.

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  • Microsoft CEO warns of ‘nightmare’ future for AI if Google’s search dominance continues | CNN Business

    Microsoft CEO warns of ‘nightmare’ future for AI if Google’s search dominance continues | CNN Business

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    CNN
     — 

    Microsoft CEO Satya Nadella warned on Monday of a “nightmare” scenario for the internet if Google’s dominance in online search is allowed to continue, a situation, he said, that starts with searches on desktop and mobile but extends to the emerging battleground of artificial intelligence.

    Nadella testified on Monday as part of the US government’s sweeping antitrust trial against Google, now into its 14th day. He is the most senior tech executive yet to testify during the trial that focuses on the power of Google as the default search engine on mobile devices and browsers around the globe.

    Taking the stand in a charcoal suit and tie, Nadella painted Google as a technology giant that has blocked off ways for consumers to access rival search engines. His testimony reflected the frustrations of a long-running rivalry between Microsoft and Google whose tensions have permeated the weeks-long trial. (Google didn’t immediately respond to a request for comment.)

    Central to Google’s strategy has been its agreements with companies such as Apple that have made Google the default search engine for millions of internet users.

    “You get up in the morning, you brush your teeth, you search on Google,” Nadella said.

    Nadella testified that every year he has been Microsoft’s CEO, he has unsuccessfully sought to persuade Apple to switch away from Google as its default search partner. Nadella added that Microsoft has been willing to spend close to $15 billion a year for the privilege. (A senior Apple executive, Eddy Cue, testified last week that Apple has always considered Google the best search product for its users, a claim echoed by Google itself throughout the trial.)

    However, even more worrisome, Nadella argued, is that the enormous amount of search data that is provided to Google through its default agreements can help Google train its AI models to be better than anyone else’s — threatening to give Google an unassailable advantage in generative AI that would further entrench its power.

    “This is going to become even harder to compete in the AI age with someone who has that core… advantage,” Nadella testified.

    Despite being profitable, and despite investing some $100 billion in it over the past 20 years, Microsoft’s Bing search engine has only a single-digit market share in mobile search, and only slightly more — into the teens — in desktop search, Nadella said, adding that one of his dreams has been to see Bing account for at least 20% of the market in both segments.

    Bing has struggled to grow its market share in part because being the default search provider for billions of devices means Google receives enormous amounts of data through search queries that helps Google understand at scale what users are likely to be interested in, Nadella noted. And for years, that “dynamic data” has enabled Google to stay ahead of Bing, he added.

    “Every misspelling of a new movie, every local restaurant whose name you mistype,” Nadella explained, “…is a very critical asset to have your search quality get better.” And because the physical world is constantly changing, capturing shifts in search trends are essential to helping a search engine stay relevant as historical data becomes less relevant. Nadella previously led Microsoft’s cloud computing business and before that had spent several years overseeing the engineering team responsible for search and advertising at the company, making him well-versed in Bing’s various challenges.

    Now, Nadella has said that the same data advantage could create “even more of a nightmare” as large language models compete on the basis of the data they are trained on.

    “What is concerning is, it reminds me of what happened with distribution deals [in search],” he testified.

    Under questioning by a Google attorney, Nadella admitted that in some cases, defaults are not the sole determinant of success: Google was able to overcome Microsoft’s own Internet Explorer defaults on Windows PCs to become the market-leading desktop web browser.

    But Nadella attributed Google’s success to the relative openness of the Windows platform, arguing that on more tightly controlled mobile operating systems, and in search, default status plays a much larger role than in competition for desktop web browsers.

    In addition to training its models on search queries, Google has also been moving to secure agreements with content publishers to ensure that it has exclusive access to their material for AI training purposes, according the Microsoft CEO. In Nadella’s own meetings with publishers, he said that he now hears that Google “wants … to write this check and we want you to match it.” (Google didn’t immediately respond to questions about those deals.)

    The requests highlight concerns that “what is publicly available today [may not be] publicly available tomorrow” for AI training, according to the testimony.

    While Microsoft and Apple have their own defaults — for example, by making Apple Maps the default maps app on iOS devices — Google goes much further than other tech companies in using “carrots and sticks” to keep people using its products by default, Nadella claimed. He cited Google’s licensing requirements that make Google’s Play Store a required installed app as a condition of using the Android operating system — another topic of dispute in the trial. The equivalent would be if Microsoft threatened to withhold Microsoft Office if Bing were not the default search engine, Nadella said, a move he claimed would not be in Microsoft’s business interests.

    Acknowledging that Google would not be in its dominant position without Microsoft’s own antitrust battles with the US government in the 1990s, Nadella said the situation involving Google today is vastly different. Internet search and, particularly on mobile devices, is the single largest software business opportunity in the world.

    Google’s dominance in search is reinforced when websites and publishers optimize for Google’s search algorithm and not Bing’s, when advertisers flock to Google and when users stick to what’s familiar, Nadella argued.

    In his fruitless negotiations with Apple, Nadella said he has tried to argue that Bing’s current role is little more than as a useful tool for Apple to “bid up the price” of hosting Google as the default search provider — but that Bing provides an important counterweight to Google and that Apple should consider investing in the Microsoft alternative for competition’s sake. Nadella has also proposed running Bing on Apple devices as a kind of “public utility,” he said.

    “Let’s say Bing exited the market,” Nadella said. “You think Google would keep paying [Apple]?”

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  • New trove of emails and documents turned over to prosecutors in Georgia election subversion case | CNN Politics

    New trove of emails and documents turned over to prosecutors in Georgia election subversion case | CNN Politics

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    CNN
     — 

    A trove of emails and documents uncovered by state investigators looking into a voting systems breach in Georgia is being turned over to the Fulton County prosecutors who brought the sweeping racketeering case against former President Donald Trump and his allies.

    More than 15,000 emails and documents connected to Misty Hampton, the former election supervisor for Coffee County, were discovered this month by the Georgia Bureau of Investigation – after attorneys for the rural county’s board of elections claimed the information had been lost.

    Hampton has been charged alongside Trump and 17 other co-defendants with trying to subvert the 2020 election results in Georgia. She has been accused of facilitating the unlawful breach of Coffee County’s voting systems.

    The Georgia Bureau of Investigation had been looking into the Coffee County incident since the summer of 2022. Earlier this month, the agency completed its investigation and gave the case file to Fulton County prosecutors to be included as part of discovery to be turned over to defendants in the Trump election interference case.

    While it’s unclear what’s in the trove of emails and documents, the Coffee County breach features prominently in the Fulton County indictment. Prosecutors say Trump allies illegally breached the voting systems in hopes of finding proof that the election was fraudulent. Prosecutors also have evidence tying Trump campaign lawyers to the breach.

    Sidney Powell, the former Trump campaign attorney charged with crimes stemming from the Coffee County voting systems breach, has centered her defense around the claim that access to the data was authorized by Hampton. Powell and pro-Trump lawyer Kenneth Chesebro are the first two defendants to go to trial, with jury selection set to begin Friday.

    In text messages previously obtained by CNN, Hampton allegedly gave Trump attorneys a “written invitation” to access Georgia voting systems.

    RELATED: Georgia prosecutors have messages showing Trump’s team is behind voting system breach

    Hampton’s attorney Jonathan Miller said he believes that the newly discovered emails and content will exonerate her.

    “There is nothing in the 15,000 emails that would do anything to make my client culpable of a crime, and I look forward to reviewing it all,” Miller told CNN. “She was acting under authority of Georgia statutes in doing what she did, and the evidence is going to show that. She did not commit any crimes.”

    Hampton and Powell each face seven charges in Fulton County, including conspiracy to commit election fraud and computer trespassing, in addition to racketeering. A trial date for Hampton has not been set, and Miller said his client has not received a plea offer she is “willing to facilitate.”

    All but one defendant, bail bondsman Scott Hall, who has agreed to testify for the prosecution, have pleaded not guilty.

    The security of Georgia’s elections had been the subject of litigation even before the 2020 presidential contest. The Coalition for Good Governance, a nonprofit organization, sued the Georgia secretary of state over the issue in 2017. Hampton’s alleged involvement in the Coffee County breach came to light as part of that ongoing civil lawsuit.

    “Few people believed the bizarre claims made by the Coffee County Board of Elections and their attorneys that Misty Hampton’s emails were suddenly lost shortly after she was terminated in February 2021,” the coalition said in a statement.

    The board of elections did not respond to CNN’s request for comment.

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  • More than 20 million Americans enrolled in a federal program for subsidized internet access | CNN Business

    More than 20 million Americans enrolled in a federal program for subsidized internet access | CNN Business

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    Washington
    CNN
     — 

    More than 20 million US households are now receiving discounts on internet service as part of a federal program created to close the digital divide, according to the Federal Communications Commission.

    The milestone highlights the cost of reliable internet service for low-income families, an issue that the government’s Affordable Connectivity Program (ACP) seeks to address by providing $30-a-month subsidies to eligible US households. Recipients living on tribal lands can receive even more, up to $75 per month to help cover internet access costs.

    US residents can can qualify for the program if they meet certain eligibility requirements, such as participating in other government assistance programs including SNAP or Medicaid, if their income is below a certain level or if they have recently received federal Pell grants.

    The FCC announcement comes nearly two years after the bipartisan infrastructure law first set up the program, replacing an earlier pandemic-era aid initiative. And Americans have signed up for the program at a rapid pace.

    In early 2022, just months after the infrastructure bill became law, the FCC said more than 10 million households had signed up for the ACP.

    Then, this February, Vice President Kamala Harris announced the figure had grown to more than 16 million households saving a total of $500 million a month on internet service.

    The program has continued to gain more than half a million new households a month since then.

    “For a long time, closing the digital divide focused on one part of the equation—the lack of physical infrastructure to get online,” said FCC Chairwoman Jessica Rosenworcel in a statement. “But we know that for many people, even when there was technically access, the cost to get online was too high.”

    Despite the program’s bipartisan popularity and its rapid uptake by consumers, the new enrollment figures still only represent about 40% of the estimated 50 million households in the United States that may be eligible for assistance through the ACP, according to research by the consumer advocacy group Common Sense Media.

    And the ACP’s future is uncertain: Once the program runs out of the $14 billion that Congress initially allocated for it, millions of low-income Americans could lose their monthly discounts. The more households that sign up, the faster the program will exhaust its funding. Policy analysts widely anticipate the ACP running out of money in 2024, setting up pressure on Congress to extend the program.

    The ACP isn’t the only way the US government has recently moved to expand internet access. Billions of dollars in infrastructure funding are set to flow to states in the coming months as part of a separate initiative to encourage broadband buildouts. All US states and territories have been awarded at least some funding under the program overseen by the Commerce Department known as the Broadband Equity, Access and Deployment (BEAD) program.

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  • Elon Musk’s X Corp. sues California AG over content moderation law | CNN Business

    Elon Musk’s X Corp. sues California AG over content moderation law | CNN Business

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    New York
    CNN
     — 

    Elon Musk’s X Corp., the parent company of the platform formerly known as Twitter, on Friday sued California’s attorney general over the state’s new content moderation law.

    California Gov. Gavin Newsom signed bill AB 587 into law last September. The law requires social media companies to post their terms of service online and submit a semiannual report to the state attorney general outlining their content moderation policies and practices. Platforms must, among other things, disclose how their automated content moderation systems work, how they define controversial content categories such as “hate speech” and “disinformation,” and the number of pieces of content flagged or removed in such categories.

    Newsom’s office touted the bill as a way to improve transparency from social networks. But in a complaint filed in California’s Eastern District Court against California Attorney General Robert Bonta, X alleged that the law violates the First Amendment and California’s constitution by potentially compelling the company to moderate users’ politically charged speech.

    The law “compels companies like X Corp. to engage in speech against their will, impermissibly interferes with the constitutionally-protected editorial judgments of companies such as X Corp., has both the purpose and likely effect of pressuring companies such as X Corp. to remove, demonetize, or deprioritize constitutionally-protected speech,” the company alleged in the complaint. It added that the law could place an “undue burden” on social media companies such as Musk’s X, which is headquartered in California.

    Attorney General Bonta’s press office said in an email to CNN: “While we have not yet been served with the complaint, we will review it and respond in court.”

    A spokesperson for Newsom sent CNN a statement from last September in which the governor remarked on the bill.

    “California will not stand by as social media is weaponized to spread hate and disinformation that threaten our communities and foundational values as a country,” Newsom said in the statement. “Californians deserve to know how these platforms are impacting our public discourse, and this action brings much-needed transparency and accountability to the policies that shape the social media content we consume every day.”

    The lawsuit comes as Musk has escalated his rhetoric over what kinds of speech should be permitted on his platform, as the company’s core advertising business has taken a major revenue hit over concerns, among other things, about the approach to content moderation. Under Musk’s leadership, the platform has made several changes to its content policies, including ceasing enforcement of its Covid-19 misinformation policy and reinstating many previously banned users.

    Just last month, at least two brands paused their ad spending on X after their advertisements ran alongside an account promoting Nazism. (X suspended the account after the issue was flagged and said ad impressions on the page were minimal.)

    The billionaire this week threatened a lawsuit against the Anti-Defamation League for defamation, claiming that the nonprofit organization’s statements about rising hate speech on the social media platform have torpedoed X’s advertising revenue. (The ADL says it does not comment on legal threats, but CEO Jonathan Greenblatt spoke out against the #BanTheADL campaign on X.)

    In Friday’s lawsuit, X Corp. alleged that requiring social media companies to report their moderation practices could pressure the platforms into “limiting or censoring constitutionally-protected content that the State finds objectionable.” It also claimed that the law could force social platforms “to take public positions on controversial and politically charged issues” and thus tailor those positions in a way it otherwise wouldn’t to avoid public scrutiny.

    The law “‘compel[s]’ X Corp. to ‘speak a particular message,’ which necessarily ‘alters the content of’ its speech,’” in violation of its First Amendment rights, the company alleges in the complaint.

    The lawsuit seeks a jury trial on the constitutionality and legal validity of the California law.

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  • Federal appeals court extends limits on Biden administration communications with social media companies to top US cybersecurity agency | CNN Business

    Federal appeals court extends limits on Biden administration communications with social media companies to top US cybersecurity agency | CNN Business

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    Washington
    CNN
     — 

    A federal appeals court has expanded the scope of a ruling that limits the Biden administration’s communications with social media companies, saying it now also applies to a top US cybersecurity agency.

    The ruling last month from the conservative 5th Circuit US Court of Appeals severely limits the ability of the White House, the surgeon general, the Centers for Disease Control and Prevention and the FBI to communicate with social media companies about content related to Covid-19 and elections that the government views as misinformation.

    The preliminary injunction had been on pause and a recent procedural snafu over a request from the plaintiffs in the case to broaden its scope led the court on Tuesday to withdraw its earlier opinion and issue a new one that now includes the US Cybersecurity and Infrastructure Security Agency. That agency is charged with protecting non-military networks from hacking and other homeland security threats.

    Similar to the ruling last month, in which the appeals court said the federal government had “likely violated the First Amendment” when it leaned on platforms to moderate some content, the new ruling says CISA violates the Constitution.

    “CISA used its frequent interactions with social media platforms to push them to adopt more restrictive policies on censoring election-related speech,” the three-judge panel wrote.

    “The platforms’ censorship decisions were made under policies that CISA has pressured them into adopting and based on CISA’s determination of the veracity of the flagged information,” they continued. “Thus, CISA likely significantly encouraged the platforms’ content-moderation decisions and thereby violated the First Amendment.”

    The plaintiffs in the suit, which include Missouri and Louisiana’s attorneys general, as well as several individual plaintiffs, had also asked the court to expand the scope in other ways, including by making it apply to some State Department officials. But the court’s new ruling was only modified to add CISA as an enjoined entity.

    The judges said they were pausing their new injunction for 10 days, and the Biden administration has the option of asking the Supreme Court to issue a more lasting pause on the modified ruling.

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  • Australia fines X, accusing it of ’empty talk’ on fighting child sexual abuse online | CNN Business

    Australia fines X, accusing it of ’empty talk’ on fighting child sexual abuse online | CNN Business

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    CNN
     — 

    Australia issued a fine of $610,500 Australian dollars ($386,000) on Monday against the company formerly known as Twitter for “falling short” in disclosing information on how it tackles child sex abuse content, in yet another setback for the Elon Musk-owned social media platform.

    Just days earlier, the European Commission formally opened an investigation into X after issuing a previous warning about disinformation and illegal content on its platform linked to the Israel-Hamas war.

    Australia’s e-Safety Commission, the online safety regulator, said in a statement Monday that X had failed to adequately respond to a number of questions about the way it was dealing with the problem of child abuse materials.

    The commission accused the platform of not providing any response to some questions, leaving some sections entirely blank or providing answers that were incomplete or inaccurate.

    “Twitter/X has stated publicly that tackling child sexual exploitation is the number 1 priority for the company, but it can’t just be empty talk, we need to see words backed up with tangible action,” eSafety Commissioner Julie Inman Grant said in the statement.

    In February, Inman Grant had asked five tech firms — X, TikTok, Google (including YouTube), Discord and Twitch — about the steps they were taking to tackle the “proliferation” of crimes against children taking place on their services.

    “Their answers revealed … troubling shortfalls and inconsistencies,” Inman Grant said. X’s failure to comply was “more serious” than other companies, the commissioner added.

    The platform has 28 days to either request a withdrawal of the notice or pay up.

    X did not immediately respond to a request for comment by CNN.

    The commission said X did not respond to a number of important questions such as “the time it takes the platform to respond to reports of child sexual exploitation; the measures it has in place to detect child sexual exploitation in livestreams; and the tools and technologies it uses to detect child sexual exploitation material.”

    When asked about the measures the platform has in place to prevent grooming of children by sexual predators, X responded by saying that it is “not a service used by large number of young people,” adding that its technology was currently “not of sufficient capability or accuracy.”

    The regulator said Google also failed to answer a number of key questions on child abuse. The American tech giant has been given a formal warning to deter it from future non-compliance, it added.

    Lucinda Longcroft, Google’s director of government affairs and public policy for Australia and New Zealand, told CNN the platform has “invested heavily in the industry-wide fight to stop the spread of child sexual abuse material” and remains “committed to … collaborating constructively and in good faith with the eSafety Commissioner.”

    In an earlier report, the Australian regulator said it had uncovered “serious shortfalls” in how Apple, Meta, Microsoft, Skype, Snap, WhatsApp and Omegle tackle online child sexual exploitation.

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  • X appears to slow load times for links to several news outlets and rival platforms | CNN Business

    X appears to slow load times for links to several news outlets and rival platforms | CNN Business

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    New York
    CNN
     — 

    Link loading times to some Twitter competitors and news media sites posted to X, the social media platform formerly known as Twitter, appeared to be delayed or throttled for much of Tuesday.

    Links posted to X that directed to sites including the New York Times, Reuters, Facebook, Substack and X competitors Bluesky and Threads took around 5 seconds to load — a notable slowdown from the typically nearly instantaneous loading times, according to observations by CNN reporters. Many other sites, such as NBA.com, CNN, retailer Target and other sites did not appear to be affected by the issue.

    The delays were first reported by users of the technology forum Hacker News.

    The reason for the delays in loading links to some sites was not clear. X did not respond to multiple requests for comment from CNN. The site has been plagued by technical issues after Musk bought the site last year and laid off the majority of the staff. And the issue seemed to have resolved for some users by Tuesday afternoon.

    However, the delays affected the sites for rival platforms, as well as news outlets that Twitter owner Elon Musk has previously criticized. Musk earlier this year feuded with the New York Times over its unwillingness to pay for his platform’s new paid verification program, and he has separately called for the outlet to be “cancelled.”

    The apparent delay in visiting links to the New York Times was easy to verify with simple commands on a computer. Will Dormann, a cybersecurity researcher, plugged the New York Times website into a basic command program on his Mac and compared the loading time for that website with that of a dummy website. The load time for the New York Times site was about 4.5 seconds longer, Dormann told CNN Tuesday.

    X, like other platforms, uses a link-shortener service to collect information on users who click on links shared on the platform. When a link for a New York Times article plugged into X’s link-shortener takes far longer to load than other websites using the same link-shortening service, “this is the clear indicator that there are server-side [at the X-operated shortener] shenanigans going on,” Dormann told CNN.

    The New York Times said in a statement to CNN that it had observed the delay, but, “We have not received any explanation from the platform about this move.”

    “While we don’t know the rationale behind the application of this time delay, we would be concerned by targeted pressure applied to any news organization for unclear reasons,” it said in the statement. “The mission of The New York Times is to report the news impartially without fear or favor, and we’ll continue to do so, undeterred by any attempts to hinder this.”

    Meta, the parent company of Facebook and Threads, did not respond to a request for comment on the delay. But CEO Mark Zuckerberg responded to a post about the issue on Threads with a thinking face emoji.

    Musk and Zuckerberg have in recent weeks been making plans to take one another on in a cage fight, although Zuckerberg this week signaled that the fight may be off because he believes Musk “isn’t serious.” “Elon won’t confirm a date, then says he needs surgery, and now asks to do a practice round in my backyard instead,” Zuckerberg wrote on Threads Sunday. Musk on Monday appeared to respond by suggesting in a series of tweets that he might show up at Zuckerberg’s home to fight anyway.

    Substack cofounders Chris Best, Hamish McKenzie and Jairaj Sethi said in a statement to CNN that they hoped X would reverse the delay but that “Substack was created in direct response to this kind of behavior by social media companies.”

    “Writers cannot build sustainable businesses if their connection to their audience depends on unreliable platforms that have proven they are willing to make changes that are hostile to the people who use them,” the Substack cofounders said.

    Reuters said in a statement that it was aware of reports “of a delay in opening links to Reuters stories on X. We are looking into the matter.”

    Bluesky did not immediately respond to a request for comment about the link delay.

    X briefly sparked backlash in December over a decision to ban links to rival social media services, including Facebook, Instagram and Twitter alternatives like Mastodon, which was later reversed. The platform has also faced a series of outages and technical issues in recent months that have affected users’ ability to read tweets, view photos and click through links after Musk slashed the company’s staff and cut back on infrastructure spending.

    -CNN’s Jon Passantino and Oliver Darcy contributed to this report.

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  • Appeals court says Biden admin likely violated First Amendment but narrows order blocking officials from communicating with social media companies | CNN Politics

    Appeals court says Biden admin likely violated First Amendment but narrows order blocking officials from communicating with social media companies | CNN Politics

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    CNN
     — 

    A federal appeals court on Friday said the Biden administration likely violated the First Amendment in some of its communications with social media companies, but also narrowed a lower court judge’s order on the matter.

    The US 5th Circuit Court of Appeals ruled that certain administration officials – namely in the White House, the surgeon general, the US Centers for Disease Control and Prevention, and the Federal Bureau of Investigation – likely “coerced or significantly encouraged social media platforms to moderate content” in violation of the First Amendment in its efforts to combat Covid-19 disinformation.

    But the three-judge panel said the preliminary injunction issued by US District Judge Terry Doughty in July, which ordered some Biden administration agencies and top officials not to communicate with social media companies about certain content, was “both vague and broader than necessary to remedy the Plaintiffs’ injuries, as shown at this preliminary juncture.”

    The Biden administration had previously argued in the lawsuit brought by Republican attorneys general claiming unconstitutional censorship that channels with social media companies must stay open so that the federal government can help protect the public from threats to election security, Covid-19 misinformation and other dangers.

    In briefs submitted earlier this summer, the administration wrote, “There is a categorical, well-settled distinction between persuasion and coercion,” adding that Doughty had “equated legitimate efforts at persuasion with illicit efforts to coerce.”

    The 5th Circuit left in place part of the injunction that barred certain Biden administration officials from “threatening, pressuring, or coercing social-media companies in any manner to remove, delete, suppress, or reduce posted content of postings containing protected free speech.”

    “But,” the appeals court said, “those terms could also capture otherwise legal speech. So, the injunction’s language must be further tailored to exclusively target illegal conduct and provide the officials with additional guidance or instruction on what behavior is prohibited.”

    The appeals court reversed several aspects of Doughty’s sweeping order, concluding that those pieces of it risked blocking the federal government “from engaging in legal conduct.”

    The 5th circuit left the order, which had been temporarily blocked earlier in the summer, on pause for 10 days so that the case can be appealed to the Supreme Court.

    The opinion was handed down jointly by Circuit Judges Edith Clement, Jennifer Walker Elrod and Don Willett – all appointees of Republican presidents.

    The conservative appeals court sided with many of the arguments put forward by the plaintiffs, which included private individuals as well Missouri and Louisiana, but also narrowed the injunction’s scope so that it only applied to the White House, the surgeon general, the CDC and the FBI. Doughty had included other agencies in his July order.

    This story has been updated with additional information.

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  • ADL says it will resume advertising on X following feud with Elon Musk | CNN Business

    ADL says it will resume advertising on X following feud with Elon Musk | CNN Business

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    New York
    CNN
     — 

    The Anti-Defamation League on Wednesday said it plans to resume advertising on X, the platform formerly known as Twitter, following a spat with owner Elon Musk.

    Musk last month threatened to sue the ADL for defamation, claiming that the nonprofit organization’s statements about rising hate speech on the social media platform had hurt X’s advertising revenue. ADL CEO Jonathan Greenblatt pushed back on the claims, saying that while the ADL was part of a coalition of groups that called on companies to pause advertising on the platform immediately following Musk’s acquisition last year, it had not been engaged in such calls in recent months.

    Musk’s statements about the group also amplified a campaign of antisemitic hate against the organization that had begun prior to Musk’s legal threat, leading to a surge of threats directed at the ADL, Greenblatt told CNN last month.

    The rights group reiterated in a statement Wednesday that “any allegation that ADL has somehow orchestrated a boycott of X or caused billions of dollars of losses to the company or is ‘pulling the strings’ for other advertisers is false.”

    “Indeed, we ourselves were advertising on the platform until the anti-ADL attacks began a few weeks ago,” the group said. “We now are preparing to do so again to bring our important message on fighting hate to X and its users.”

    Musk responded to the ADL’s statement in a post Wednesday saying, “Thank you for clarifying that you support advertising on X.”

    The statement appears to mark a resolution — for now — to weekslong tension between Musk and the ADL, which has coincided with incidents of antisemitism rising across the United States. But the group says it will continue to monitor for antisemitic content on X.

    “As we have noted in our research over the past several years, X – along with other social media platforms — has a serious issue with antisemites and other extremists using these platforms to push their hateful ideas and, in some cases, bully Jewish and other users,” it said. “A better, healthier, and safer X would be a win for the world … As we do with all platforms, we will credit X as it moves in that direction, and we also will call it out when it has not.”

    The ADL and other similar organizations, including the Center for Countering Digital Hate, have said in reports that the volume of hate speech on the website has grown dramatically under Musk’s stewardship. (Musk has criticized the findings.)

    Two brands in August paused their ad spending on X after their advertisements ran alongside an account promoting Nazism. X suspended the account after the issue was flagged and said ad impressions on the page were minimal.

    X has emphasized its new “freedom of speech, not freedom of reach” policy that aims to limit the reach of so-called lawful but awful content on the platform and to protect brands from having their ads appear alongside such content. CEO Linda Yaccarino has also promoted additional brand safety controls for advertisers, including the ability to avoid having their ads show next to “targeted hate speech, sexual content, gratuitous gore, excessive profanity, obscenity, spam, [and] drugs.”

    Asked about Musk’s threats to sue the ADL in an interview last week, Yaccarino said, “I wish that would be different … We’re looking into that.” She added that the ADL should acknowledge X’s progress on addressing antisemitism.

    It appears the platform may have more work to do. A search on Wednesday for Greenblatt’s name immediately surfaced multiple hateful and antisemitic tweets about the ADL leader.

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  • EU asks Meta for more details on efforts to stop illegal and inaccurate content on Israel-Hamas war | CNN Business

    EU asks Meta for more details on efforts to stop illegal and inaccurate content on Israel-Hamas war | CNN Business

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    London
    CNN
     — 

    The European Union has told Meta it has a week to explain in greater detail how it is fighting the spread of illegal content and disinformation on its Facebook and Instagram platforms following the attacks across Israel by Hamas.

    The European Commission, the bloc’s executive arm, said it had sent the formal request for information to Meta (META) Thursday.

    The commission also asked TikTok for more information on the steps it had taken to prevent the spread of “terrorist and violent content and hate speech,” it said, but without referring to the Israel-Hamas war.

    Last week, EU Commissioner Thierry Breton wrote to several social media companies, including Meta and TikTok, giving them 24 hours to detail the measures they were taking to comply with EU rules on content moderation enshrined in the recently enacted Digital Services Act (DSA).

    On Friday, Meta said its teams had been working “around the clock” since the attacks by Hamas on October 7 to monitor its platforms and outlined some of its actions against misinformation and content that violates its policies and standards.

    And on Sunday, TikTok announced that it had, among other measures, launched a command center to coordinate the work of its “safety professionals” around the world and improve the software it uses to automatically detect and remove graphic and violent content.

    But the European Commission has made it clear it needs more information. In its Thursday announcement, the body gave both Meta and TikTok until October 25 to respond to its requests and warned that it had the power to impose financial penalties if it was not satisfied with their responses.

    Both companies also have until November 8 to detail how they intend to protect the “integrity of elections” on their platforms, the commission said.

    Both Meta and TikTok are bound by obligations set out in the DSA, a landmark piece of legislation, enacted in August, that seeks to more stringently regulate large tech companies, and protect people’s rights online.

    The commission’s formal requests come a week after it issued a similar ultimatum to X, the company formerly known as Twitter, asking for information on how it intends to stop the spread of illegal, misleading, violent and hateful content.

    The commission said it had opened an investigation into X’s compliance with the DSA. It has not announced parallel investigations into Meta or TikTok.

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  • Google’s antitrust showdown: What’s at stake for the internet search titan | CNN Business

    Google’s antitrust showdown: What’s at stake for the internet search titan | CNN Business

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    CNN
     — 

    Google will face off in court Tuesday against government officials who have accused the company of antitrust violations in its massive search business, kicking off a long-anticipated legal showdown that could reshape one of the internet’s most dominant platforms.

    The trial beginning this week in Washington before a federal judge marks the culmination of two ongoing lawsuits against Google that started during the Trump administration. Legal experts describe the actions as the country’s biggest monopolization case since the US government took on Microsoft in the 1990s.

    In separate complaints, the Justice Department and dozens of states accused Google in 2020 of abusing its dominance in online search by allegedly harming competition through deals with wireless carriers and smartphone makers that made Google Search the default or exclusive option on products used by millions of consumers. The complaints eventually consolidated into a single case.

    Google has maintained that it competes on the merits and that consumers prefer its tools because they are the best, not because it has moved to illegally restrict competition. Google’s search business provides more than half of the $283 billion in revenue and $76 billion in net income Google’s parent company, Alphabet, recorded in 2022. Search has fueled the company’s growth to a more than $1.7 trillion market capitalization.

    Now, the company is set to defend itself in a multiweek trial that could upend the way Google distributes its search engine to users. The case is expected to feature testimony from high-profile witnesses including former employees of Google and Samsung, along with executives from Apple, including senior vice president Eddy Cue. It is the first case to go to trial in a series of court challenges targeting Google’s far-reaching economic power, testing the willingness of courts to clamp down on large tech platforms.

    “This is a backwards-looking case at a time of unprecedented innovation,” said Google President of Global Affairs Kent Walker, “including breakthroughs in AI, new apps and new services, all of which are creating more competition and more options for people than ever before. People don’t use Google because they have to — they use it because they want to. It’s easy to switch your default search engine — we’re long past the era of dial-up internet and CD-ROMs.”

    The trial may also be a bellwether for the more assertive antitrust agenda of the Biden administration.

    In its initial complaint, the US government alleged in part that Google pays billions of dollars a year to device manufacturers including Apple, LG, Motorola and Samsung — and browser developers like Mozilla and Opera — to be their default search engine and in many cases to prohibit them from dealing with Google’s competitors.

    As a result, the complaint alleges, “Google effectively owns or controls search distribution channels accounting for roughly 80 percent of the general search queries in the United States.”

    The lawsuit also alleges that Google’s Android operating system deals with device makers are anticompetitive, because they require smartphone companies to pre-install other Google-owned apps, such as Gmail, Chrome or Maps.

    At the time the lawsuit was first filed, US antitrust officials did not rule out the possibility of a Google breakup, warning that Google’s behavior could threaten future innovation or the rise of a Google successor.

    Separately, a group of states, led by Colorado, made additional allegations against Google, claiming that the way Google structures its search results page harms competition by prioritizing the company’s own apps and services over web pages, links, reviews and content from other third-party sites.

    But the judge overseeing the case, Judge Amit Mehta in the US District Court for the District of Columbia, tossed out those claims in a ruling last month, narrowing the scope of allegations Google must defend and saying the states had not done enough to show a trial was necessary to determine whether Google’s search results rankings were anticompetitive.

    Despite that ruling, the trial represents the US government’s furthest progress in challenging Google to date. Mehta has said Google’s pole position among search engines on browsers and smartphones “is a hotly disputed issue” and that the trial will determine “whether, as a matter of actual market reality, Google’s position as the default search engine across multiple browsers is a form of exclusionary Conduct.”

    In January, meanwhile, the Biden administration launched another antitrust suit against Google in opposition to the company’s advertising technology business, accusing it of maintaining an illegal monopoly. That case remains in its early stages at the US District Court for the Eastern District of Virginia.

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  • Microsoft, Amazon facing UK antitrust probe over cloud services | CNN Business

    Microsoft, Amazon facing UK antitrust probe over cloud services | CNN Business

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    London
    CNN
     — 

    Microsoft and Amazon could be in hot water over apparently making it difficult for UK customers to use multiple suppliers of vital cloud services.

    The Competition and Markets Authority (CMA), the country’s antitrust regulator, said Thursday it was launching an investigation into the UK cloud infrastructure services market to determine whether players were engaged in anti-competitive practices.

    Cloud computing firms, such as Microsoft and Amazon Web Services (AWS), use data centers around the world to provide remote access to computing services and storage. This “cloud infrastructure” forms the foundation for how software applications, such as Gmail and Dropbox, are developed and run.

    The CMA probe has been initiated following a report from Britain’s media and communications regulator Ofcom, which found that the supply of cloud infrastructure in the United Kingdom is highly concentrated and competition limited.

    “We welcome Ofcom’s referral of public cloud infrastructure services to us for in-depth scrutiny,” CMA CEO Sarah Cardell said in a statement.

    “This is a £7.5 billion market that underpins a whole host of online services — from social media to [artificial intelligence] foundation models. Many businesses now completely rely on cloud services, making effective competition in this market essential.”

    The CMA said it would conclude its investigation by April 2025.

    The probe is the latest evidence of increased scrutiny of big tech companies by European regulators, which have tightened rules in recent years in areas such as data protection and targeted advertising.

    The European Digital Services Act, which came into force at the end of August, reflects one of the most comprehensive and ambitious efforts by policymakers anywhere to regulate tech giants. It applies to companies including Amazon (AMZN), Apple (AAPL), Google (GOOG), Microsoft (MSFT), Snapchat, TikTok and Meta (META), the owner of Facebook and Instagram.

    According to Ofcom, last year Microsoft and AWS had a combined market share of 70-80% in the UK cloud infrastructure services market. Google is their closest competitor with a share of 5-10%.

    In its report, Ofcom identified features of the market that make it more difficult for customers to change providers or to use multiple providers, such as switching fees.

    “If customers have difficulty switching and using multiple providers, it could make it harder for competitors to gain scale and challenge AWS and Microsoft effectively for the business of new and existing customers,” Ofcom wrote.

    The report also raised concerns about the software licensing practices of some cloud providers, particularly Microsoft.

    Both Amazon and Microsoft said they would engage “constructively” with the CMA.

    But a spokesperson for AWS added that the company disagreed with Ofcom’s findings. “We… believe they are based on a fundamental misconception of how the IT sector functions, and the services and discounts on offer,” the spokesperson said, noting that “the cloud has made switching between providers easier than ever.”

    A spokesperson for Microsoft added: “We are committed to ensuring the UK cloud industry remains innovative, highly competitive and an accelerator for growth across the economy.”

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  • Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business

    Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business

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    CNN
     — 

    Dozens of states sued Instagram-parent Meta on Tuesday, accusing the social media giant of harming young users’ mental health through allegedly addictive features such as infinite news feeds and frequent notifications that demand users’ constant attention.

    In a federal lawsuit filed in California by 33 attorneys general, the states allege that Meta’s products have harmed minors and contributed to a mental health crisis in the United States.

    “Meta has profited from children’s pain by intentionally designing its platforms with manipulative features that make children addicted to their platforms while lowering their self-esteem,” said Letitia James, the attorney general for New York, one of the states involved in the federal suit. “Social media companies, including Meta, have contributed to a national youth mental health crisis and they must be held accountable.”

    Eight additional attorneys general sued Meta on Tuesday in various state courts around the country, making similar claims as the massive multi-state federal lawsuit.

    And the state of Florida sued Meta in its own separate federal lawsuit, alleging that Meta misled users about potential health risks of its products.

    Tuesday’s multistate federal suit — filed in the US District Court for the Northern District of California — accuses Meta of violating a range of state-based consumer protection statutes, as well as a federal children’s privacy law known as COPPA that prohibits companies from collecting the personal information of children under 13 without a parent’s consent.

    “Meta’s design choices and practices take advantage of and contribute to young users’ susceptibility to addiction,” the complaint reads. “They exploit psychological vulnerabilities of young users through the false promise that meaningful social connection lies in the next story, image, or video and that ignoring the next piece of social content could lead to social isolation.”

    The federal complaint calls for court orders prohibiting Meta from violating the law and, in the case of many states, unspecified financial penalties.

    “We share the attorneys generals’ commitment to providing teens with safe, positive experiences online, and have already introduced over 30 tools to support teens and their families,” Meta said in a statement. “We’re disappointed that instead of working productively with companies across the industry to create clear, age-appropriate standards for the many apps teens use, the attorneys general have chosen this path.”

    The wave of lawsuits is the result of a bipartisan, multistate investigation dating back to 2021, Colorado Attorney General Phil Weiser said at a press conference Tuesday, after Facebook whistleblower Frances Haugen came forward with tens of thousands of internal company documents that she said showed how the company knew its products could have negative impacts on young people’s mental health.

    “We know that there were decisions made, a series of decisions to make the product more and more addictive,” Tennessee Attorney General Jonathan Skrmetti told reporters. “And what we want is for the company to undo that, to make sure that they are not exploiting these vulnerabilities in children, that they are not doing all the little, sophisticated, tricky things that we might not pick up on that drive engagement higher and higher and higher that allowed them to keep taking more and more time and data from our young people.”

    Tuesday’s multipronged legal assault also marks the newest attempt by states to rein in large tech platforms over fears that social media companies are fueling a spike in youth depression and suicidal ideation.

    “There’s a mountain of growing evidence that social media has a negative impact on our children,” said California Attorney General Rob Bonta, “evidence that more time on social media tends to be correlated with depression with anxiety, body image issues, susceptibility to addiction and interference with daily life, including learning.”

    The suits follow a raft of legislation in states ranging from Arkansas to Louisiana that clamp down on social media by establishing new requirements for online platforms that wish to serve teens and children, such as mandating that they obtain a parent’s consent before creating an account for a minor, or that they verify users’ ages.

    In some cases, the tech industry has challenged those laws in court — for example, by claiming that Arkansas’ social media law violates residents’ First Amendment rights to access information.

    New Hampshire Attorney General John Formella said the states expect Meta to mount a similar defense but that the company will not succeed because the multistate suit targets Meta’s conduct, not speech.

    Formella added that in addition to consumer protection claims, New Hampshire is also bringing negligence and product liability claims as part of the federal suit.

    The complaints filed in state courts allege violations of various state-specific laws. For example, the complaint from District of Columbia Attorney General Brian Schwalb accuses Meta of violating the district’s consumer protection statute by misleading the public about the safety of company platforms.

    Tuesday’s lawsuits come days before a federal judge in California is set to consider a slew of similar allegations against the wider tech industry. In a hearing Friday morning, District Judge Yvonne Gonzalez Rogers is expected to hear arguments by Google, Meta, Snap and TikTok urging her to dismiss nearly 200 complaints involving private plaintiffs that have accused the companies of addicting or harming their users.

    It is possible that Tuesday’s multistate suit could be merged with the consumers’ cases, said Weiser, adding that the main difference of the multistate case is that it could lead to nationwide relief.

    “The coordination that we bring across the AG community, we believe is invaluable to this,” Weiser said.

    Participating in Tuesday’s multistate federal suit are California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Virginia, Washington, West Virginia and Wisconsin.

    The additional suits filed in state courts were brought by the District of Columbia, Massachusetts, Mississippi, New Hampshire, Oklahoma, Tennessee, Utah and Vermont.

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  • Illinois passes a law that requires parents to compensate child influencers | CNN Business

    Illinois passes a law that requires parents to compensate child influencers | CNN Business

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    CNN
     — 

    When 16-year-old Shreya Nallamothu from Normal, Illinois, scrolled through social media platforms to pass time during the pandemic, she became increasingly frustrated with the number of children she saw featured in family vlogs.

    She recalled the many home videos her parents filmed of herself and her sister over the years: taking their first steps, going to school and other “embarrassing stuff.”

    “I’m so glad those videos stayed in the family,” she said. “It made me realize family vlogging is putting very private and intimate moments onto the internet.”

    She said reminders and lectures from her parents about how everything is permanent online intensified her reaction to the videos she saw of kid influencers. “The fact that these kids are either too young to grasp that or weren’t given the chance to grasp that is really sad.”

    Nallamothu wrote a letter last year to her state senator, Democrat Dave Koehler, urging him to consider legislation to protect young influencers. Last week, her home state became the first to pass a law that establishes safeguards for minors who are featured in online videos – and how they’re compensated.

    Illinois Gov. J. B. Pritzker on Friday signed a bill, inspired by Nallamothu’s letter, amending the state’s Child Labor Law that will allow teenagers over the age of 18 to take legal action against their parents if they were featured in monetized social media videos and not properly compensated, similar to the rights held by child actors.

    Starting July 1 2024, parents in Illinois will be required to put aside 50% of earnings for a piece of content into a blocked trust fund for the child, based on the percentage of time they’re featured in the video. For example, if a child is in 50% of a video, they should receive 25% of the funds; if they’re in 100%, they are required to get 50% of the earnings. However, this only applies in scenarios during which the child appears on the screen for more than 30% of the vlogs in a 12-month period.

    “We understand that parents should receive compensation too because they have equity in this, but we don’t want to forget about the child,” Koehler told CNN.

    Many YouTube parent vloggers or social media influencers post multiple videos each month or weekly, sharing intimate details about their lives, ranging from family financial troubles and the birth of a new baby to opening new toys or going through a child’s phone or report card. Although children are predominantly featured in these monetized videos, parents have had no legal obligation to give them any portion of the earnings.

    Meanwhile, kid influencer accounts, which can at times earn $20,000 or more for sponsored posts, are typically run by parents and not often set up in the child’s name due to age restrictions on social media platforms.

    “We often see with emerging technology and trends that legislation is always a reaction to that,” Koehler said. “But we know with the explosion of social media that parents are using it to monetize kids being on videos. If money is being made and nothing is set up for the children, it’s the same thing as a child actor.”

    The new law is modeled off of the 1936 Jackie Coogan’s Law, the Hollywood silent actor discovered by Charlie Chaplin whose parents swindled him out of his earnings. That California law required parents to set aside a portion of 15% of child earnings in a blocked trust account that the child actor could access after the age of 18.

    Although similar bills have been proposed in California and Washington, Jessica Maddox — an assistant professor at The University of Alabama who studies the social media influencer community — said she’s hopeful other states will follow in Illinois’ footsteps.

    “Even though Illinois is the first state to pass such a law, this legislation is a long time coming,” Maddox said. “Social media labor and careers are becoming increasingly common and viable forms of income, and it’s important that the law catches up with technology to ensure minors aren’t being exploited.”

    Maddox said it also breathes new life into the long-simmering debate over what is appropriate for parents to document online and whether a child can really consent to participating.

    “I’ve seen organic conversations start to emerge between individuals who had been featured heavily in their parents’ social media content but are now of age to tell their stories and admit that had they really understood what was going on, they would have never consented for their lives to be broadcast for everyone.”

    Chris McCarty — the 19-year-old founder of Quit Clicking Kids, an advocacy and education site to combat the monetization of children on social media, who is helping to develop child influencer legislation in Washington State — believes that as the kids featured in family vlogs grow up and share their stories, there will be an increase in public pressure to provide more privacy protections.

    “When children are slightly older, often the narratives get increasingly personal; for example. detailing trouble with bullies, first periods, doctor’s visits, and mental health issues,” McCarty said. “A lot of consumers assume that children working in a family vlog and child actors have the same experiences. This is not the case. As difficult as it is to be a child actor, child actors are still playing a part rather than having their intimate personal details shared for entertainment and monetary purposes.”

    Nallamothu agrees that the next step is for legislation to evolve over time to include more regulations around consent.

    “I know this bill isn’t going to be perfect off the bat but I don’t want perfection to get in the way of progress because regulations have only started coming up,” she said. “I’m glad it’s getting there.”

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