{"id":66395,"date":"2022-12-15T23:12:24","date_gmt":"2022-12-16T04:12:24","guid":{"rendered":"https:\/\/world.edu\/?p=66395"},"modified":"2022-12-15T23:12:24","modified_gmt":"2022-12-16T04:12:24","slug":"what-social-media-regulation-could-look-like-think-of-pipelines-not-utilities","status":"publish","type":"post","link":"https:\/\/world.edu\/what-social-media-regulation-could-look-like-think-of-pipelines-not-utilities\/","title":{"rendered":"What social media regulation could look like: Think of pipelines, not utilities"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-66396\" src=\"https:\/\/world.edu\/wp-content\/uploads\/2022\/12\/social-media-regulation.jpeg\" alt=\"\" width=\"680\" height=\"290\" srcset=\"https:\/\/world.edu\/wp-content\/uploads\/2022\/12\/social-media-regulation.jpeg 680w, https:\/\/world.edu\/wp-content\/uploads\/2022\/12\/social-media-regulation-250x107.jpeg 250w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><\/p>\n<p>Elon Musk\u2019s takeover of Twitter, and his controversial\u00a0<a href=\"https:\/\/www.nytimes.com\/2022\/12\/12\/business\/musk-twitter-fauci.html\">statements<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.theguardian.com\/technology\/2022\/dec\/13\/techscape-twitter-files-elon-musk\">decisions<\/a>\u00a0as its owner, have fueled a new wave of calls for\u00a0<a href=\"https:\/\/www.bostonherald.com\/2022\/12\/04\/elizabeth-warren-will-work-with-lindsey-graham-to-regulate-twitter-she-says\/\">regulating social media companies<\/a>. Elected officials and policy scholars have argued for years that companies like Twitter and Facebook \u2013 now Meta \u2013 have\u00a0<a href=\"https:\/\/www.nytimes.com\/2022\/10\/13\/opinion\/elon-musk-twitter.html\">immense power<\/a>\u00a0over public discussions and can use that power to\u00a0<a href=\"https:\/\/freedomhouse.org\/report\/freedom-net\/2017\/manipulating-social-media-undermine-democracy\">elevate some views and suppress others<\/a>. Critics also accuse the companies of\u00a0<a href=\"https:\/\/www.cnn.com\/2022\/09\/06\/tech\/instagram-fine-teens-privacy\/index.html\">failing to protect users\u2019 personal data<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/facebook-knows-instagram-is-toxic-for-teen-girls-company-documents-show-11631620739\">downplaying harmful impacts<\/a>\u00a0of using social media.<\/p>\n<p>As an economist who studies the\u00a0<a href=\"https:\/\/scholar.google.com\/citations?hl=en&amp;user=yxN_35oAAAAJ\">regulation of utilities<\/a>\u00a0such as electricity, gas and water, I wonder what that regulation would look like. There are many regulatory models in use around the world, but few seem to fit the realities of social media. However, observing how these models work can provide valuable insights.<br \/>\n<center><iframe width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/ItAseX1x_9o\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/center><\/p>\n<h4><strong>Not really economic regulation<\/strong><\/h4>\n<p>The central ideas behind economic regulation \u2013 safe, reliable service at fair and reasonable rates \u2013 have been around for\u00a0<a href=\"https:\/\/mises.org\/library\/great-depression-14th-century\">centuries<\/a>. The U.S. has a rich history of regulation since the turn of the 20th century.<\/p>\n<p>The first federal economic regulator in the U.S. was the Interstate Commerce Commission, which was created by the\u00a0<a href=\"https:\/\/www.archives.gov\/milestone-documents\/interstate-commerce-act\">Interstate Commerce Act of 1887<\/a>. This law required railroads, which were\u00a0<a href=\"https:\/\/www.loc.gov\/classroom-materials\/united-states-history-primary-source-timeline\/rise-of-industrial-america-1876-1900\/railroads-in-late-19th-century\/\">growing dramatically<\/a>\u00a0and becoming a highly influential industry, to operate safely and fairly and to charge reasonable rates for service.<\/p>\n<p>The Interstate Commerce Act reflected concerns that railroads \u2013 which were monopolies in the regions that they served and provided an essential service \u2013 could behave in any manner they chose and charge any price they wanted. This power threatened people who relied on rail service, such as\u00a0<a href=\"https:\/\/www.theatlantic.com\/magazine\/archive\/1873\/11\/the-railroads-and-the-farms\/630996\/\">farmers sending crops to market<\/a>. Other industries, such as bus transportation and trucking, would later be subjected to similar regulation.<\/p>\n<p>Individual social media companies don\u2019t really fit this traditional mold of economic regulation. They are not monopolies, as we can see from people leaving Twitter and jumping to alternatives like\u00a0<a href=\"https:\/\/www.bostonglobe.com\/2022\/12\/06\/business\/after-trying-two-leading-twitter-alternatives-heres-what-we-found\/\">Mastodon and Post<\/a>.<\/p>\n<p>While internet access is fast becoming an essential service in the information age, it\u2019s debatable whether social media platforms provide essential services. And companies like Facebook and Twitter don\u2019t directly charge people to use their platforms. So the traditional focus of economic regulation \u2013 fear of exorbitant rates \u2013 doesn\u2019t apply.<br \/>\n<center><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">On Elon Musk&#39;s Twitter:<\/p>\n<p>&#8211; Slurs against Black people have tripled<br \/>&#8211; Slurs against women are up 33%<br \/>&#8211; Slurs against Jewish people are up 61%<br \/>&#8211; And slurs against gay men are up 58%<\/p>\n<p>These numbers are abysmal \u2013 and unacceptable.<\/p>\n<p>Today, <a href=\"https:\/\/twitter.com\/RepMarkTakano?ref_src=twsrc%5Etfw\">@RepMarkTakano<\/a> and I are demanding action.<\/p>\n<p>&mdash; Adam Schiff (@RepAdamSchiff) <a href=\"https:\/\/twitter.com\/RepAdamSchiff\/status\/1600873302443970560?ref_src=twsrc%5Etfw\">December 8, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/center><\/p>\n<h4><strong>Fairness and safety<\/strong><\/h4>\n<p>In my view, a more relevant regulatory model for social media might be the way in which the U.S. regulates\u00a0<a href=\"https:\/\/www.ferc.gov\/what-ferc-does\">electricity grid and pipeline operations<\/a>. These industries fall under the jurisdiction of the Federal Energy Regulatory Commission and\u00a0<a href=\"https:\/\/www.naruc.org\/\">state utility regulators<\/a>. Like these networks, social media carries a commodity \u2013 here it\u2019s information, instead of electricity, oil or gas \u2013 and the public\u2019s primary concern is that companies like Meta and Twitter should do it safely and fairly.<\/p>\n<p>In this context, regulation means establishing standards for safety and equity. If a company violates those standards, it faces fines. It sounds simple, but the practice is far more complicated.<\/p>\n<p>First, establishing these standards requires a careful definition of the regulated company\u2019s roles and responsibilities. For example, your local electric utility is responsible for delivering power safely to your home. Since social media companies continuously adapt to the needs and wants of their users, establishing these roles and responsibilities could prove challenging.<\/p>\n<p>Texas attempted to do this in 2021 with\u00a0<a href=\"https:\/\/capitol.texas.gov\/BillLookup\/History.aspx?LegSess=872&amp;Bill=HB20\">HB 20<\/a>, a law that barred social media companies from banning users\u00a0<a href=\"https:\/\/www.protocol.com\/policy\/hb-20-fifth-circuit-questions\">based on their political views<\/a>. Social media trade groups sued, arguing that the measure infringed upon their members\u2019 First Amendment rights. A federal appellate court\u00a0<a href=\"https:\/\/www.politico.com\/news\/2022\/10\/12\/5th-circuit-temporarily-blocks-texas-social-media-law-00061555\">blocked the law<\/a>, and the case is likely headed to the Supreme Court.<\/p>\n<p>Setting appropriate levels of fines is also complicated. Theoretically, regulators should try to set a fine commensurate with the\u00a0<a href=\"https:\/\/www.ferc.gov\/sites\/default\/files\/2020-07\/PolicyStatementonEnforcement.pdf\">damage to society from the infraction<\/a>. From a practical standpoint, however, regulators treat fines as a deterrent. If the regulator never has to assess the fine, it means that companies are adhering to the established standards for safety and equity.<\/p>\n<p>But laws often inhibit agencies from energetically policing target industries. For example, the Office of Enforcement at the\u00a0<a href=\"https:\/\/www.ferc.gov\/enforcement\">Federal Energy Regulatory Commission<\/a>\u00a0is concerned with safety and security of U.S. energy markets. But under a 2005 law, the office can\u2019t levy civil penalties higher than\u00a0<a href=\"https:\/\/www.ferc.gov\/civil-penalties\">US$1 million per day<\/a>. In comparison, the cost to customers of the California power crisis of 2000-2001, fueled partially by energy market manipulation, has been estimated at approximately\u00a0<a href=\"https:\/\/www.ppic.org\/wp-content\/uploads\/content\/pubs\/report\/R_103CWR.pdf\">$40 billion<\/a>.<\/p>\n<p>In 2022 the Office of Enforcement\u00a0<a href=\"https:\/\/www.ferc.gov\/media\/fy2022-oe-annual-report\">settled eight investigations<\/a>\u00a0of violations that occurred from 2017 to 2021 and levied a total of $55.5 million in penalties. In addition, it opened 21 new investigations. Clearly, the prospect of a fine from the regulator is not a sufficient deterrent in every instance.<\/p>\n<h4><strong>From legislation to regulation<\/strong><\/h4>\n<p>Congress writes the laws that create regulatory agencies and guide their actions, so that\u2019s where any moves to regulate social media companies will start. Since these companies are controlled by some of the wealthiest people in the U.S., it\u2019s likely that a law regulating social media would face legal challenges, potentially all the way to the Supreme Court. And the current Supreme Court has a\u00a0<a href=\"https:\/\/minnesotalawreview.org\/article\/a-century-of-business-in-the-supreme-court-1920-2020\/\">strong pro-business record<\/a>.<\/p>\n<p>If a new law withstands legal challenges, a regulatory agency such as the\u00a0<a href=\"https:\/\/www.fcc.gov\/\">Federal Communications Commission<\/a>\u00a0or the\u00a0<a href=\"https:\/\/www.ftc.gov\/\">Federal Trade Commission<\/a>, or perhaps a newly created agency, would have to write regulations establishing social media companies\u2019 roles and responsibilities. In doing so, regulators would need to be mindful that changes in social preferences and tastes could render these roles moot.<\/p>\n<p>Finally, the agency would have to create enforcement mechanisms, such as fines or other penalties. This would involve determining what kinds of actions are likely to deter social media companies from behaving in ways deemed harmful under the law.<\/p>\n<p>In the time it would take to set up such a system, we can assume that social media companies would evolve quickly, so regulators would likely be assessing a moving target. As I see it, even if bipartisan support develops for regulating social media, it will be easier said than done.<\/p>\n<p><em><strong>Author Bio:<\/strong> Theodore J. Kury is Director of Energy Studies at the University of Florida<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk\u2019s takeover of Twitter, and his controversial\u00a0statements\u00a0and\u00a0decisions\u00a0as its owner, have fueled a new wave of calls for\u00a0regulating social media companies. Elected officials and policy scholars have argued for years that companies like Twitter and Facebook \u2013 now Meta \u2013 have\u00a0immense power\u00a0over public discussions and can use that power to\u00a0elevate some views and suppress others. [&hellip;]\n&hellip; <a href=\"https:\/\/world.edu\/what-social-media-regulation-could-look-like-think-of-pipelines-not-utilities\/\" class=\"more\">learn more&rarr;<\/a><\/p>","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[434200],"coauthors":[11733],"class_list":["post-66395","post","type-post","status-publish","format-standard","hentry","category-business-politics","tag-social-media-regulation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What social media regulation could look like: Think of pipelines, not utilities - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/what-social-media-regulation-could-look-like-think-of-pipelines-not-utilities\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"What social media regulation could look like: Think of pipelines, not utilities - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"Elon Musk\u2019s takeover of Twitter, and his controversial\u00a0statements\u00a0and\u00a0decisions\u00a0as its owner, have fueled a new wave of calls for\u00a0regulating social media companies. 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