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.
