WSJ Tech News Briefing: Behind Big Tech’s Effort to Kill an Online Kid Safety Bill
Released on November 18, 2024

Introduction

In the latest episode of the WSJ Tech News Briefing, host James Rundle delves into the intricate dynamics between Big Tech companies and legislative efforts aimed at enhancing online safety for children. The episode not only explores the hurdles faced by the Kids Online Safety Act but also introduces listeners to the Wall Street Journal's new podcast series, Bold Names.

Launching Bold Names: Conversations with Tech Leaders

James Rundle kicks off the show by announcing the debut of Bold Names, a new podcast series hosted by WSJ columnists Christopher Mims and Tim Higgins. This series aims to feature in-depth interviews with prominent leaders in the tech industry, providing insights into their strategies and perspectives on current technological challenges.

Christopher Mims explains, “Bold Names is a series about the bold name leaders who appear in the pages of the Wall Street Journal. And it's about having a direct conversation with the folks who are making news every day, every week.” (01:26)

Tim Higgins adds, “It's an opportunity to have a conversation with interesting people who are leading very complex companies who are dealing with some of the day's biggest issues, whether it's the adoption of artificial intelligence or the transition to electric vehicles...” (01:42)

The first episode features Peter Rawlinson, CEO of electric vehicle manufacturer Lucid. Tim Higgins highlights Rawlinson’s pivotal role in developing Tesla's Model S sedan and his vision for Lucid's future, emphasizing the challenges of sustaining growth in the fiercely competitive EV market. Christopher Mims notes, “It's also fascinating to hear from somebody who was so instrumental in making Tesla what it is today, who is now going head to head with Tesla...” (03:09) The episode further discusses Rawlinson's contrarian views on market trends and the future of robo-taxis, positioning Lucid as a high-end contender with plans to introduce more competitively priced models.

Upcoming guests for Bold Names include:

• Marc Benioff, CEO of Salesforce
• Aaron Levy, CEO of enterprise software company Box
• JB Straubel, CEO of Redwood Materials and board member of Tesla

These conversations promise to shed light on pivotal developments in AI, EVs, and sustainable technologies.

Main Segment: The Struggle of the Kids Online Safety Act

The focal point of the episode transitions to the Kids Online Safety Act, a significant legislative effort aimed at expanding online protections for children—the first major update in over 25 years. Having passed the Senate with near-unanimous support (91-3), the bill now faces an uncertain future in the House, primarily due to intense lobbying by Big Tech giants Meta and Alphabet's Google.

James Rundle provides an overview: “The Kids Online Safety act offers the first major expansion of online protections for children in over 25. The Bill sailed through the Senate this summer with near unanimous approval, but now it's snarled in the House and looks unlikely to pass before the next Congress.” (00:03)

Understanding the Kids Online Safety Act

The act introduces a duty of care for social media platforms, compelling them to address design aspects that could harm children's mental health. This includes regulating features like infinite scrolling, push notifications, and algorithmic content amplification that may lead to distress, addiction, bullying, and sexual exploitation.

Georgia Wells, WSJ reporter, elaborates, “The duty of care would look at the design aspects of the social media platforms... this duty of care would put this legal onus on the tech companies to take steps to address things like mental health disorders, addiction like behaviors, bullying, sexual exploitation, and more.” (07:17)

Support from Parent Survivors

A significant driving force behind the legislation is Maureen Molak, a mother who became an advocate after her son, David, tragically took his own life in 2016 due to social media addiction and persistent cyberbullying. She underscores the personal toll and the necessity for legal safeguards: “As a parent survivor, to feel like you're being toyed with is unconscionable.” (07:52)

Big Tech's Opposition and Lobbying Tactics

Despite its bipartisan roots, the bill encountered fierce resistance in the House, largely orchestrated by Meta and Alphabet. These companies embarked on a widespread lobbying campaign, leveraging cultural and social issues to fragment the bill's support base.

Georgia Wells discusses their strategy: “Meta and Alphabet have been really kind of leaning on culture war type issues to try to splinter this bipartisan support...” (08:54) They raised concerns from both the left—such as LGBTQ expression—and the right—like censorship of anti-abortion views—to create divisions.

Financially, Meta and Alphabet have invested heavily in lobbying efforts, spending nearly $90 million over the past three years. Although the exact expenditure on this bill isn't disclosed, the companies have explicitly referenced the Kids Online Safety Act in their lobbying efforts repeatedly.

Corporate Responses and Actions

In response to the legislative push, both Meta and Alphabet have proposed alternative measures and highlighted existing protections. A Meta spokesperson suggested that legislation should focus on parental controls in app stores, advocating for mandatory parental approval for app downloads by users under 16. Conversely, an Alphabet spokeswoman pointed to their initiatives, such as disabling autoplay for videos targeting young users, to demonstrate proactive measures in safeguarding minors.

Additionally, Meta has implemented restrictions for teen accounts, including making them private by default, addressing long-standing criticisms regarding the platform's handling of young users.

The Road Ahead for the Kids Online Safety Act

Looking forward, the bill's prospects appear bleak unless it gains traction as part of essential year-end legislative packages spearheaded by Senate Majority Leader Chuck Schumer. There is optimism among supporters that embedding the act within broader legislation could ensure its passage, but this remains uncertain with the current Congressional dynamics.

Georgia Wells concludes, “The folks we're talking to are saying, like, certainly they would foresee changes. That degree of significance is what's in debate right now. So we'll see.” (11:36)

Conclusion

The episode of WSJ Tech News Briefing offers a comprehensive exploration of the ongoing battle between legislative efforts to protect children online and the formidable lobbying power of Big Tech companies. Through insightful discussions and expert interviews, listeners gain a nuanced understanding of the challenges and stakes involved in shaping the future of online safety.

Produced by Judy Chang with supervising producer Catherine Millsop, the episode underscores the critical interplay between technology, policy, and society. As the Kids Online Safety Act navigates the tumultuous waters of Congressional deliberations, its outcome will significantly impact the digital landscape for future generations.

Tune in next time as WSJ Tech News Briefing continues to bring you the latest in technology news, policy debates, and exclusive industry insights.