Wednesday, June 1, 2022

Axios Login: Conservative campaign stalls

Plus: Apple snags Japanese legend | Wednesday, June 01, 2022
 
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Axios Login
By Ina Fried · Jun 01, 2022

I love playoff hockey, but I'm exhausted after watching my beloved Edmonton Oilers fall 8-6 against Colorado. But, as AJ reminded me, it's only Game 1.

💰 Situational awareness: 26 leading technologists sent a letter to bipartisan leaders in Congress today, urging them to "resist pressure" from the growing influence of cryptocurrency lobbyists, as reported by the Financial Times.

Today's newsletter is 1,168 words, a 4-minute read.

 
 
1 big thing: The right's legal campaign against social media stalls
Illustration of an elephant trunk on a block with a gavel coming down on it.

Illustration: Aïda Amer/Axios

 

Conservatives' long campaign against social media platforms keeps hitting a wall, Axios' Ashley Gold reports.

Why it matters: Republicans in Washington haven't been able to change the laws that govern the way platforms moderate users' content. Conservatives' alternative platforms have largely failed to gain traction. And the latest blow came from the U.S. Supreme Court.

Driving the news: The court on Tuesday, by a 5-4 vote, stopped Texas from enforcing a law, passed last fall, intended to end online "censorship" of political views.

  • The law would allow Texans and the attorney general to sue tech giants like Meta and YouTube if they remove certain kinds of content.
  • The court's order isn't a final ruling on the merits of Texas' law, but when the courts freeze a particular law or policy, it's often a sign that the measure faces an uphill climb on the merits.
  • The decision comes just a week after a federal appeals court barred Florida from enforcing a similar law.

The big picture: Conservative lawmakers and activists have argued for years that tech platforms are biased against them. Those complaints have only gotten louder as social media services have adopted stricter policies on abusive speech and on misinformation around vaccines, elections and voting.

  • States across the U.S. have begun to enact laws telling tech platforms how to manage users' posts. These measures aim to stop companies from removing users' legal speech; to prohibit platforms from using algorithms to choose which posts to show, or to require companies to be more transparent about their content decisions.

So far, this hasn't worked. Pressure from the right has not yet led to laws that pass legal muster. Meanwhile, conservatives' efforts to build rival platforms with different rules have largely fizzled.

Some proponents of these laws argue that tech companies should be considered "common carriers," like phone companies.

  • That idea hasn't yet flown in court. "Neither law nor logic recognizes government authority to strip an entity of its First Amendment rights merely by labeling it a common carrier," the 11th Circuit Court of Appeals wrote in its ruling against Florida's content-moderation law.

What they're saying: "We are encouraged that this attack on First Amendment rights has been halted until a court can fully evaluate the repercussions of Texas's ill-conceived statute," said Matt Schruers, counsel at the Computer & Communications Industry Association, one of the tech industry groups fighting the law.

Yes, but: It's not clear how the justices will handle similar cases going forward.

  • Justice Samuel Alito wrote in his dissent, "It is not at all obvious how our existing precedents, which predate the age of the internet, should apply to large social media companies."
  • Liberal Justice Elena Kagan sided with three conservative colleagues in supporting letting the Texas law go into effect. But court watchers interpreted her vote as a part of her running objection to the court's growing practice — known as the "shadow docket" — of deciding important cases quickly without full argument or written decision.

Our thought bubble: Conservatives stymied in court may find a different triumph in Elon Musk's planned purchase of Twitter, which the billionaire has promised to reshape much along the lines that the right has demanded.

The bottom line: The Texas decision shows that government policing of tech companies' content rules is just as tough to get right as tech companies' policing of users' speech.

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2. Apple game service gets a Japanese all-star
A screenshot from Air Twister

Air Twister. Screenshot: YS-Net

 

Apple announced Tuesday that one of Japan's most revered game developers, Yu Suzuki, is making his next game for the tech giant's mobile gaming subscription service, Axios' Stephen Totilo reports.

Why it matters: Apple is an enigmatic but major player in gaming, with resources to do seemingly whatever it wants and tap some all-star talent in the process.

  • Apple doesn't make games or dedicated gaming hardware and doesn't report its gaming revenue.
  • The Wall Street Journal estimates that in 2019, Apple generated $8.5 billion from games in its app store, at least $2 billion more than Sony, Activision, Nintendo and Microsoft earned in that same time period.

Details: The game from Suzuki and his team is called Air Twister and features a princess-warrior who flies through fantastical environments to zap airborne enemies. It is due out June 24.

  • It's an arcade-style throwback to Suzuki's earliest works, particularly the mid-'80s shoot-em-up Space Harrier.

Suzuki is an industry pioneer and Hall of Famer. He oversaw the development of dozens of acclaimed games, including After Burner, Virtua Fighter and Shenmue, all for iconic Japanese publisher Sega during its rivalry with Nintendo.

  • He left his full-time role at Sega in 2011 and raised over $6 million over Kickstarter to release 2019's Shenmue III, but he had not revealed a new project since then.

What they're saying: "When I went to the Apple headquarters, we had a talk — and we actually had a really good talk about what if I was to do a really straight-forward game you want to play over and over again, like old-school arcades," Suzuki told Axios through an interpreter during a video call today.

Between the lines: Apple keeps quiet about how it builds its game business, but it's clearly finding a way to tie its Arcade service to some game creators and brands who have name recognition with hardcore console players.

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3. Quick bits: Meta's hardware prowess

1. Meta could be the next billion dollar customer for chipmaker Broadcom, Reuters reports, citing JPMorgan analysts.

  • Why it matters: It's a sign that Meta, once the new kid on the hardware block, is seen as the next hardware power, through its production of virtual-reality rigs and Portal devices.

2. In addition to holding hearings targeting the Biden administration, Congressional Republicans could make life tough for tech companies if they retake Congress, Axios' Lachlan Markay reports.

  • Between the lines: "Big Tech is in the crosshairs," the Heritage Foundation's Mike Howell tells Axios. "They're going to be subject to document requests and subpoenas and depositions."

3. Amazon is taking aim at antitrust legislation put forth by Sen. Amy Klobuchar as well as similar legislation in the House from Rep. David Cicilline.

  • What they're saying: "Congress is considering legislation that jeopardizes two of the things American consumers love most about Amazon: the vast selection and low prices made possible by opening our store to third-party selling partners, and the promise of fast, free shipping through Amazon Prime," Amazon says in a blog post.
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4. Take note

On Tap

  • Augmented reality conference AWE 2022 runs today through Friday in Santa Clara, California.
  • The National Constitution Center and the National Association of Attorneys General are hosting a bipartisan conversation on the role of states in regulating social media. It runs from noon-1pm ET and will be streamed live.

Trading Places

  • Amber Harrison joined Match Group on Tuesday as vice president of brand for the dating company's Match service.
  • Irvine, California-based connectivity firm Mobix Labs has hired former Microsemi executive Jim Aralis as its chief technology officer. 

ICYMI

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