Twitter, Facebook Face Scrutiny Over Role in Capitol Riots After Parler Goes Dark

Technology companies tried to contain a mounting backlash against their social media sites, with shares of Twitter Inc. and Facebook Inc. falling in early trading and rival platform Parler forced offline by Amazon.com Inc.

Many conservatives said the moves to expunge President Donald Trump from the social networks and take down an app popular with his supporters went too far. Twitter was down about 5% Monday morning, reflecting shareholder uncertainty about the permanent removal of one of the site’s biggest accounts and the legislative consequence that could follow. Facebook’s share were down 3%.

Parler, whose chief executive officer, John Matze, pitches the network as a safe place for free speech, went down early on Monday after Amazon Web Services shut off access to its servers, leaving it without a home. Both Google and Apple Inc. kicked Parler from their stores, making it almost impossible to download the app.

The bans were strongly criticized by senior lawmakers in Germany and France. Chancellor Angela Merkel argued lawmakers should set the rules governing free speech, not technology companies, while French Finance Minister Bruno Le Maire said that the state should be responsible for regulations, rather than “the digital oligarchy,” and called big tech “one of the threats” to democracy.

The big tech companies justified their actions by citing posts stoking riots in the U.S. capital last week and sought to avoid further incitements to violence. The bans underscore the power these companies hold over how information is disseminated and the impact their decisions have. Before, it was their stance to allow incendiary speech from Trump and his allies that drew heavy criticism from the left.

Regulatory risks for social media companies will persist even though Democrats will control the Congress and White House, Bank of America analyst Justin Post wrote in a note to clients. Twitter is also likely to see some usage decline as a result of dismissing the president, he wrote.

Meanwhile, Parler has so far been unable to find other web hosting services willing to step in, because of the negative publicity stemming from the violence, organized in part on its own platform. “This is not due to software restrictions -- we have our software and everyone’s data ready to go,” said Matze. “Rather it’s that Amazon’s, Google’s and Apple’s statements to the press about dropping our access has caused most of our other vendors to drop their support for us as well.”

Even some e-commerce and payments sites are now reassessing doing business with companies linked to Trump. Stripe Inc. will stop processing payments for Trump’s campaign website, according to a person familiar with the decision. Shopify Inc. shut down online stores affiliated with Trump.

Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm

Bloomberg Quicktake brings you live global news and original shows spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.

To watch complete coverage on Bloomberg Quicktake 24/7, visit http://www.bloomberg.com/qt/live, or watch on Apple TV, Roku, Samsung Smart TV, Fire TV and Android TV on the Bloomberg app.

Have a story to tell? Fill out this survey for a chance to have it featured on Bloomberg Quicktake: https://cor.us/surveys/27AF30

Connect with us on…
YouTube: https://www.youtube.com/user/Bloomberg
Breaking News on YouTube: https://www.youtube.com/c/BloombergQuickTakeNews
Twitter: https://twitter.com/quicktake
Facebook: https://www.facebook.com/quicktake
Instagram: https://www.instagram.com/quicktake