LONDON: US President Donald Trump is going to battle against Twitter and Facebook — a move that could weigh on companies whose shares have so far outperformed during the pandemic.
Trump is set to announce an executive order targeting social media companies on Thursday, though it’s not clear what exactly the order will include. The action comes after Twitter applied a fact-check to two of Trump’s tweets, including one that falsely claimed mail-in ballots would lead to widespread voter fraud, reports the US media.
Trump then accused the social media company of censorship, warning that if it continued to tag his messages, he would use the power of the federal government to rein it in or even shut it down.
Twitter (TWTR) shares closed down 2.8% and are off another 3% in premarket trading. Facebook (FB) shares dropped 1.3% Wednesday and are down another 1.5% in premarket trading Thursday.
Legal experts say Trump’s options for cracking down on Twitter and other sites over how they moderate their platforms are somewhat limited, my CNN Business colleague Brian Fung reports.
The most obvious course of action would be for Trump to seek changes to the Communications Decency Act, which shields tech platforms from legal liability for a wide range of online content.
There has been an ongoing push, led by the Justice Department and Republicans in Congress, to do just that. But changing the law would require building broad consensus in a deadlocked Congress. The Trump administration could not go it alone, according to Brian.
Trump could pressure federal agencies to take action against social media companies. But the Federal Trade Commission and the Federal Communications Commission have previously resisted efforts by the White House to regulate political speech.