In an interview with the New York Times
Internet Stocks Under Scrutiny
This continues a recent trend of people and prominent politicians on both sides of the aisle calling for increased regulatory oversight of technology companies. This political backlash is not surprising given that both sides of the aisle have reasons to distrust big tech.
On the left, there's the natural suspicion for big corporations and billionaires. Further, many blame the close 2016 election going in President Donald Trump's direction on "fake news" whose propagation was enabled by online platforms. Naturally, politicians further left like Senator Elizabeth Warren and Senator Bernie Sanders have already called out for harsher measures.
Although this idea started on the far left, Biden's emphasis on it shows that it's now become a position embraced by moderate Democrats and centrists. It may also be a savvy attempt by Biden to outflank his rivals in the primary on this specific issue especially as Democratic voters remain concerned that nothing substantive has changed between 2016 and 2020 to prevent platforms from being weaponized.
Biden's Prescription and Facebook's Response
Like many critics of Facebook, Biden wants the company to take a more active role in making sure that "known falsehoods" are kept off the platform or regulated in some way. Facebook argues that it's simply not possible for it to completely ensure that only truthful content is posted without encroaching on users' free speech or outright engaging in censorship.
Biden wants to repeal Section 230 of the Communications Decency Act that shields digital companies from lawsuits over user posts and "good faith" efforts to remove harmful material. He wants to hold Facebook to the same standard as news companies which are legally liable for falsehoods and inaccuracies.
In one sense, increased scrutiny from politicians and the public is the only check on the company's dominance. In most sectors with high profit margins, companies are constantly challenged by market and industry forces. Eventually, competition succeeds in eroding market share. With Facebook this process has short-circuited, and it's become a monopoly due to network effects. Therefore, its biggest threat now is the federal government, and Joe Biden made it clear that the next administration will not be friendly.
