The CEOs of top social media companies, including Meta (META) founder and CEO Mark Zuckerberg, X Corp CEO Linda Yaccarino, TikTok CEO Shou Chew, Discord CEO Jaso Citron, and Snapchat (SNAP) cofounder & CEO Evan Spiegel, were grilled by the Senate Judiciary Committee earlier this Wednesday on whether or not their platforms put children at risk for online sexual abuse & exploitation. The hearing was fiery & confrontational, with the parents of victims amongst the attendees in the audience. Here are the top takeaways investors need to know:

Victims state their case (00:00:12):

Republican Senator from Illinois Dick Durbin opened the hearing with a harrowing video, where victims detailed how they were sexually exploited on the various social media platforms. The video also included parents who had lost their children from suicide due to the bullying and harassment they experienced online. It was a strong opening salvo for the Judiciary Committee that immediately put the tech CEOs on the back foot.

Senator Klobuchar vs. Discord CEO Jason Citron (00:01:13)

Democratic Senator from Minnesota Amy Klobuchar took on Discord CEO Jason Citron on whether or not he would support her legislation titled The Shield Act. The law would criminalize the nonconsensual sharing of intimate images online. Without a firm answer from Mr. Citron, the Senator erupted in frustration: "I just want to get this stuff done, I am so tired of this it's been 28 years since the Internet and we haven't passed any of these bills? Everyone is double-talk, double-talk, it's time to actually pass them. And the reason they haven't passed is because of the power of your companies."

Mark Zuckerberg confronted by grieving families (00:01:29)

Meta (META) founder & CEO Mark Zuckerberg was ambushed during the hearing when Republican Senator from Missouri, Josh Hawley, prompted Zuckerberg to apologize to the victims & families in the audience. Hawley stated "There are families of victims here today, would you like to apologize to them now? They're here, you are on national television, would you like to apologize to the families who were harmed by your product?" Zuckerberg promptly stood up and addressed the families of the victims as they held up photos of their loved ones. Zuckerberg addressed the audience saying: "I'm sorry for everything you have all been through. No one should go through the things that your families have suffered."

Although the hearing resulted in many dynamic and powerful moments, it is not clear whether any legislation will be passed against the social media giants. However, it seems that if there is any sort of bipartisan issue still left in Congress, regulation of social media is something both parties can work across the aisle on accomplishing.

Video Transcript

DICK DURBIN: With the touch of your finger, that smartphone that can entertain and inform you can become a back alley where the lives of your children are damaged and destroyed.

- I was sexually exploited on Facebook.

- I was sexually exploited on Instagram.

- I was sexually exploited on X.

- This is my daughter Olivia.

- This is our son Matthew.

- Look at how beautiful Marianne is.

- My son Riley died from suicide after being sexually exploited on Facebook.

JASON CITRON: Just like with all technology and tools, there are people who exploit and abuse our platforms for immoral and illegal purposes.

LINDA YACCARINO: It is time for a federal standard to criminalize the sharing of non-consensual intimate material.

SHOU CHEW: We share the community's concern and commitment to protect young people online. And we welcome the opportunity to work with you on legislation to achieve this goal.

LINDSAY GRAHAM: Mr. Zuckerberg, you and the companies before us, I know you don't mean it to be so, but you have blood on your hands. You have a product-- you have a product that's killing people.

AMY KLOBUCHAR: I just want to get this stuff done I'm so tired of this it's been 28 years, what, since the internet. We haven't passed any of these bills, because everyone's double talk, double talk. It's time to actually pass them. And the reason they haven't passed is because of the power of your company. So let's be really, really clear about that.

MARK ZUCKERBERG: Our job is to make sure that we build tools to help keep people safe--

JOSH HAWLEY: Are you going to compensate them?

MARK ZUCKERBERG: Senator, our job and what we take seriously is making sure that we build industry-leading tools, to find harmful--

JOSH HAWLEY: To make money--

MARK ZUCKERBERG: --take it off the services--

JOSH HAWLEY: Oh, to make money.

MARK ZUCKERBERG: --and to build tools that empower parents.

JOSH HAWLEY: So you didn't take any action. You didn't take any action. You didn't fire anybody. You haven't compensated a single victim. Let me ask you this, let me ask you this. There's families of victims here today. Have you apologized to the victims? Would you like to do so now? They're here. You're on national television. Would you like now to apologize to the victims who have been harmed by your product? Show them the pictures. Would you like to apologize for what you've done to these good people?

MARK ZUCKERBERG: --continue doing industry-leading efforts to make sure that no one has to go through the types of things that your families have had to suffer.

JEFF HORWITZ: Legislations come out of committee before in unanimous fashion. It just hasn't ever received a vote. And that's something that the Senate leadership, obviously, has some control about, and likewise in the House. So I don't know that there's certainty as to where this goes. But if there is going to be a place where Congress does decide to pass legislation regulating social media, this would be it. This is the closest thing to consensus among both parties, I think.