How Social Media Moderation Might Be Legislated After the Capitol Attack

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Section 230

Calls are mounting among lawmakers to ramp up regulation of social media following the violent takeover of the U.S. Capitol last week.

Facebook, Amazon and a slew of other tech companies have locked President Trump's account and given the boot to right-wing site Parler.

But Bay Area Congresswoman Anna Eshoo, a Democrat on the Energy and Commerce committee, calls the move by tech giants too little, too late and says "Congress and the administration must take swift and bold action."

"These companies have demonstrated they will not do the right thing on their own," she said.


The problems that social media can create or exacerbate, including spreading misinformation and breeding terrorism, are well known. But it's tricky regulatory territory, cutting across issues of free speech, data privacy, market competition and the responsibility that companies should have over the content on their platforms.

Eshoo sat on the powerful Communications & Technology subcommittee in the last Congressional session, during which she and fellow Democratic Congressman Tom Malinowksi of New Jersey introduced legislation to amend Section 230. The law governs the liability of internet intermediaries including social media companies for the content users publish on their platforms. The amendment would increase sites' liability for how their algorithms spread harmful or radicalizing content that leads to offline violence.

Facebook and Twitter's move to suspend Trump's account, she said, was "a few hours too late to thwart the failed coup attempt...and years too late to avoid the harm done to our democracy."

Eshoo said in a statement she will revive the bill in this legislative session and update it.

The Possible Changes to Section 230

Enacted in 1996 as part of the Communications Decency Act, Section 230 says interactive computer services like social media websites are not to be considered publishers of, and therefore should not be held liable for, the content that appears on their platforms. It also provides cover for "good faith" moderation of content that the provider or users deem objectionable.

Both sides of the political aisle have increasingly taken issue with the legislation, for different reasons.

Democrats tend to criticize 230 for absolving tech companies of the responsibility for policing their platforms. President-elect Biden has called for 230 to be revoked, saying social media companies are "propagating falsehoods they know to be false."

That could backfire, said Ángel Díaz of the Brennan Center for Justice, a nonpartisan law and policy think tank.

"The reality is Section 230 is precisely the law that gives the platforms flexibility to remove posts that may not necessarily be illegal but are objectionable in some way," he said.

President Trump began pushing for a Section 230 repeal after Twitter began fact-checking his tweets. His concerns echoed the objections other Republicans have made to the law, claiming it enables platforms to disproportionately censor conservative voices.

Such concerns speak to one of the thorny issues surrounding content moderation – balancing it with free speech. Although Section 230 aims to provide a legal framework for doing so, it does not specify what should and should not be censored, leaving room for debate of the sort that has unfolded across party lines.

Nor does Section 230 cover all the issues pertinent to potential social media regulation. Since the time the legislation was written, internet companies like Facebook, Amazon and Google have gobbled up huge markets, causing concerns among legislators and observers regarding fair market competition. And concern is growing about these companies' use of consumer data.

"The conversation needs to go beyond 230 to capture these other avenues that are really important for understanding the future of the internet," Díaz said.

Emma Llansó, director of the Center for Democracy & Technology's Free Expression Project, said "the attention Congress (and the Biden administration) will be paying will be as strong if not more intense in the wake of what happened at the Capitol."

Congress "needs to identify the specific problems and harms it's trying to address or prevent and come up with tailored legislative proposals."

But, she added, amending 230 alone won't resolve many of these issues and could create bigger problems.

Requiring platforms to moderate content with a fine-tooth comb, for instance, could give more established and better-funded social media sites such as Facebook a leg up on upstarts and make it impossible for new companies to get started.

"If you do regulation like 230 the wrong way you could just entrench the biggest players," Llansó said.

Other Content Moderation Laws in Development

One helpful way forward, said Díaz, could be to mandate more transparency from social media companies about their moderation policies and the outcomes of that moderation. Clearer public data, for example, "would help us get a better understanding of how much of a conservative bias there is or how much hate speech is targeting communities of color and being allowed to stay on the platform," he said.

In California, State Assemblymember Ed Chau of Monterey Park introduced a bill in December to address transparency from social media companies. Assembly Bill 35 would force social media platforms to disclose to users, in an easily accessible way, whether they have a policy or mechanism in place to address the spread of misinformation.

"The rioting upon our nation's Capital...was exacerbated by the spread of falsehoods and misinformation, some of which was disseminated via social media platforms," Chau said in a statement released last week.

"It is vital to ensure that information on these platforms, which many have come to rely upon, is accurate and factual," he said.

The bill would authorize levying $1,000 fines on social media platforms for each day they violate the disclosure requirement. That provision, however, could disproportionately burden smaller companies, Llansó said.

"You could imagine a site that doesn't know about this requirement finding out 90 days after they launch that they owe $90,000 in fines, which would be problematic for a small service," Llansó said, noting that even a blog with a comments section could be subject to the bill in its current form.

Another piece of legislation that may resurface in the new congressional session would establish a bipartisan National Commission on Online Platforms and Homeland Security to explore how social media platforms can spread violence. The bill was introduced by Mississippi Congressman Bennie Thompson in 2019, and received co-sponsorship from nearly twenty legislators on both sides of the aisle.

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What’s New from Waymo 🚗 and Snapchat 👻

🔦 Spotlight

Happy Friday, LA!

Image Source: Waymo

In case you’ve been cooped up indoors or haven’t had a chance to leave the office this week, you might have missed the latest buzz—Waymo’s self-driving cars are now cruising all over LA! That’s right—Waymo One, the autonomous ride-hailing service, has officially expanded citywide, now covering nearly 80 square miles of Los Angeles. After months of testing and a waitlist, Angelenos can now book rides 24/7 in areas stretching from Santa Monica to Hollywood to the USC neighborhood. Early feedback has been overwhelmingly positive, with passengers rating the service 4.7/5. Riders are praising the smooth, safe experience—making it a game-changer for getting around the city, whether it’s for work, errands, or leisure.

Image Source: Snap

Meanwhile, Snapchat is stepping up its game with new features in its Family Center designed to boost family safety and connectivity. Parents can now request their teens' live location on Snap Map, stay informed about their location-sharing settings, and set travel notifications to get alerts when family members arrive or depart from key locations like home or school. These updates give families more control and peace of mind in managing their digital interactions.


🤝 Venture Deals

LA Companies

  • Camouflet, an AI-driven platform specializing in real-time pricing optimization, has raised a $3M Seed funding round from private investors to enhance its services. - learn more
  • Chaos Industries, a defense tech company specializing in advanced detection and monitoring systems, raised a $145M Series B funding round led by Accel to accelerate its development of critical national security technologies. - learn more
  • Radiant, a company specializing in advanced nuclear microreactors, raised a $100M Series C funding round led by DCVC. The funds will be used to complete the Kaleidos Development Unit and conduct testing at Idaho National Laboratory's DOME facility, aiming to bring factory-built microreactors to market. - learn more
  • Mundial Media, a company focused on contextual marketing for multicultural audiences, raised a $1.5M Pre-Seed extension round led by new and existing investors, with the funds aimed at advancing their Cadmus AI technology and expanding digital advertising offerings. - learn more

LA Venture Funds
  • Joyful Ventures participated in a seed funding round for Meatly, a UK-based company specializing in lab-grown pet food, though the exact amount raised has not been disclosed. - learn more
  • B Capital participated in a $200M Series C funding round for Writer, a full-stack generative AI platform that helps enterprises deploy secure and reliable AI solutions to address critical business challenges. - learn more
  • LFX Venture Partners participated in a US$30M Series C2 funding round for UniUni, a company transforming last-mile delivery for e-commerce through technology, and plans to use the capital to improve its platform and rapidly grow its operations. - learn more
  • Composition Capital participated in a $20M Series B funding round for Arbolus, an expert insights platform that connects investors and consultants with subject matter experts, to support Arbolus's expansion into the U.S. market - learn more
  • Type One Ventures co-led a Series A funding round for Lunar Outpost, a company specializing in lunar surface mobility, commercial space robotics, and space resources; the funds will support their active programs. - learn more
  • Trousdale Ventures participated in a $29M funding round for Starfish Space, a Seattle-based satellite servicing company that will use the funds to develop and launch its Otter spacecraft, designed to extend the operational life of satellites in geostationary orbit. - learn more
  • Plus Capital participated in a $20M Series A funding round for OneSkin, a San Francisco-based biotech company specializing in skin health treatments, with the funds aimed at expanding research, developing new formulas, and growing its presence in the anti-aging skincare industry. The company will also invest in its team and explore new sales channels. - learn more
  • Starshot Capital participated in a $10.5M Series A funding round for Ecolectro, a New York City-based green hydrogen company, to support the development of its scalable electrolyzer technology and make green hydrogen more accessible. - learn more
  • Navitas Capital participated in a $37M Series B funding round for SwiftConnect, a company that provides connected access solutions for buildings and spaces, to expand its network, scale operations, and support new product initiatives. - learn more
  • Griffin Gaming Partners led a €17M Seed funding round for BIT ODD, a Finnish gaming studio focused on creating mobile games that prioritize creativity and emotional depth over finance-driven metrics. - learn more
  • The K Fund participated in a $20M funding round for Homethrive, a caregiving solutions platform, and the funds will be used to help expand its AI-driven care navigation, improve personalized support, and enhance digital tools to increase engagement across various payer populations. - learn more

        LA Exits

        • Farm Dog, a Los Angeles-based company that provides a platform with tools to help agronomists streamline their work—offering features for field scouting, document management, and data integration to enhance productivity in agriculture—has been acquired by FarmQA. - learn more

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                Wonder Dynamics: Redefining the Animation Landscape
                Wonder Animation

                🔦 Spotlight

                Happy Friday, LA!

                Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

                Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

                What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

                As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

                With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030—reflecting a compound annual growth rate (CAGR) of about 5%—tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


                🤝 Venture Deals

                LA Companies

                • Evite, an online platform enabling users to design, send, and manage digital invitations and eCards with tools for event organization and guest tracking, has received a strategic growth investment from Francisco Partners to accelerate innovation and expand its product offerings. - learn more
                LA Venture Funds
                • F4 Fund participated in a $4.1M Pre-Seed funding round for Further, a platform designed to help first-time homebuyers determine how much home they can afford by providing personalized insights on interest rates and lender requirements, giving users a clear view of their purchasing power. - learn more
                • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
                • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
                • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

                    LA Exits

                    • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
                    • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industry—including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiency—will be acquired by Serve Robotics. - learn more

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                          Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

                          🔦 Spotlight

                          Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

                          ⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

                          Image Source: Dodgers

                          💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

                          Image Source: ChatGPT

                          🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

                          From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


                          🤝 Venture Deals

                          LA Companies

                          • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
                          LA Venture Funds
                          • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
                          • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
                          • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
                          • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

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