Tag Archives: Senator Josh Hawley

U.S. senator introduces legislation to curb Big Tech’s ad business

By Nandita Bose

WASHINGTON (Reuters) – Republican Senator Josh Hawley on Tuesday introduced legislation that would penalize large tech companies that sell or show targeted advertisements by threatening a legal immunity enjoyed by the industry – the latest onslaught on Big Tech’s business practices.

The bill, titled “Behavioral Advertising Decisions Are Downgrading Services (Bad Ads) Act,” aims to crack down on invasive data gathering by large technology companies such as Facebook and Alphabet’s Google that target users based on their behavioral insights.

It does so by threatening Section 230 – part of the Communications Decency Act — that shields online businesses from lawsuits over content posted by users. The legal shield has recently come under scrutiny from both Democrat and Republican lawmakers concerned about online content moderation decisions by technology companies.

On Tuesday, Democratic Senator Brian Schatz and No. 2 Senate Republican John Thune will hold a hearing to examine the role of Section 230. The senators recently introduced legislation to reform the federal law.

In May, President Donald Trump signed an executive order that seeks new regulatory oversight of tech firms’ content moderation decisions, and he backed legislation to scrap or weaken Section 230 in an attempt to regulate social media platforms.

“Big Tech’s manipulative advertising regime comes with a massive hidden price tag for consumers while providing almost no return to anyone but themselves,” said Hawley, an outspoken critic of tech companies and a prominent Trump ally. “From privacy violations to harming children to suppression of speech, the ramifications are very real.”

His recent legislation to ban federal employees from using Chinese social media app TikTok on their government-issued phones was passed unanimously by the U.S. Senate Committee on Homeland Security and will be taken up by the U.S. Senate for a vote.

Facebook and Google did not immediately respond to requests for comment.

(Reporting by Nandita Bose in Washington; Editing by Leslie Adler)

Twitter hack raises concern in Washington

(Reuters) – U.S. lawmakers sought an explanation from Twitter Inc after hackers gained access to the social media company’s internal systems to hijack accounts of several politicians, billionaires, celebrities and companies.

The company’s shares fell nearly 3% in early trade on Thursday after hackers infiltrated the twitter handles of U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian, former U.S. President Barack Obama and billionaire Elon Musk, among others, to solicit digital currency.

Twitter said hackers had targeted employees with access to its internal systems and “used this access to take control of many highly-visible (including verified) accounts and Tweet on their behalf.”

In an extraordinary step, it temporarily prevented many verified accounts from publishing messages as it investigated the breach.

The hijacked accounts tweeted out messages telling users to send bitcoin and their money would be doubled. Publicly available blockchain records show that the apparent scammers received more than $100,000 worth of cryptocurrency.

Republican Senator Josh Hawley, a tech critic, sent a letter to Twitter Chief Executive Jack Dorsey, urging him to get in touch with the Justice Department and the Federal Bureau of Investigation to secure the site.

“A successful attack on your system’s servers represents a threat to all of your users’ privacy and data security,” Hawley told Dorsey in the letter, demanding more answers on the impact and scope of the breach.

Frank Pallone, a Democrat who chairs the House Energy and Commerce Committee that oversees a sizable portion of U.S. tech policy, said in a tweet the company “needs to explain how all of these prominent accounts were hacked.”

Dorsey said in a tweet on Wednesday that it was a “tough day” for everyone at Twitter and pledged to share “everything we can when we have a more complete understanding of exactly what happened”.

Other high profile accounts that were hacked included rapper Kanye West, Amazon founder Jeff Bezos, investor Warren Buffett, Microsoft Corp co-founder Bill Gates, and the corporate accounts for Uber and Apple Inc.

Some analysts said hacks of this nature will not have any material impact on Twitter’s financials, others expect it to spend more on platform security to address such incidents.

The hack “certainly doesn’t help,” Joe Wittine, Edgewater Research analyst, told Reuters in an email. It will pose more of a “reputational risk”, versus “material near-term risk to advertising revenues.”

Echoing a similar sentiment, Bernstein analyst Mark Shmulik said in the long-term, “maybe if a few of the ‘blue check mark’ accounts decide to leave the platform that could have a minor impact on usage.”

(Reporting by Ayanti Bera, Aakash Jagadeesh Babu and Subrat Patnaik in Bengaluru and Nandita Bose in Washington DC; Editing by Bernard Orr and Peter Graff)

Senate committee to vote on bill banning federal employees from using TikTok

By Nandita Bose

WASHINGTON (Reuters) – A U.S. Senate committee is likely to vote next week on a bill from Republican Senator Josh Hawley that would ban federal employees from using social media app TikTok on government-issued devices.

The Senate Homeland Security and Governmental Affairs Committee will take up the “No TikTok on Government Devices Act” at its hearing on July 22.

TikTok’s Chinese ownership and wide popularity among American teens have brought scrutiny from U.S. regulators and lawmakers.

TikTok, owned by China’s ByteDance, is known for its ability to create short videos. The company last year said that about 60% of its 26.5 million monthly active users in the U.S. are aged 16 to 24.

One of the company’s harshest critic, Hawley has repeatedly raised national security concerns over TikTok’s handling of user data and said he was worried that the company shares data with the Chinese government.

“For federal employees it really is a no-brainer. It’s a major security risk. … Do we really want Beijing having geo-location data of all federal employees? Do we really want them having their keystrokes?” Hawley told reporters in March when he announced the introduction of the bill.

Several U.S. agencies that deal with national security and intelligence issues have banned employees from using the app, which allows users to create short videos.

Recently, Secretary of State Mike Pompeo said the United States is looking at banning Chinese social media apps, including TikTok, suggesting it shared information with the Chinese government. He said Americans should be cautious in using the app.

TikTok in the past has told Reuters it has never provided user data to China. It did not immediately respond to a request for comment.

Under a law introduced in 2017 under Chinese President Xi Jinping, Chinese companies have an obligation to support and cooperate in China’s national intelligence work.

(Reporting by Nandita Bose in Washington; Editing by Leslie Adler)