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The Supreme Court puzzles over social-media regulations

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IN THE MIDDLE of a four-hour Supreme Court debate on February 26th over state laws regulating social-media sites, Justice Samuel Alito asked Paul Clement, the platforms’ lawyer, to imagine that “YouTube were a newspaper”. How much, Justice Alito asked, “would it weigh?” The snark was directed at Mr Clement’s suggestion that Facebook, YouTube and their ilk deserve editorial control over the content they host just as newspapers are free to decide which articles appear on their broadsheets.

If Justice Alito was sceptical of the regulators’ comparisons of platforms to telegraph companies (which must dispatch all messages, not just the ones they agree with), he was downright hostile to the newspaper analogy. But Mr Clement had a rejoinder: a paper version of YouTube “would weigh an enormous amount, which is why, in order to make it useful, there’s actually more editorial discretion going on in these cases” than in any of the others that have come before the court.

The laws at issue date from 2021, when Republican legislatures in Florida and Texas sought to rein in sites like Facebook and Twitter because they had sidelined anti-vaccine activists and insurrectionists (including a user named Donald Trump). Two industry groups—NetChoice and the Computer & Communications Industry Association—quickly sued. Governments cannot constitutionally wrest control of content-moderation from private companies, they argued. After the appellate courts asked to consider the cases split on the question, Moody v NetChoice and NetChoice v Paxton arrived at the Supreme Court.

Justice Alito’s sympathies seemed to lie with Florida and Texas, as did those of Justices Clarence Thomas and Neil Gorsuch. The three mused that content moderation is a euphemism for “censorship”, prompting Mr Clement to insist that only the government can properly be said to “censor”. The three also accused the social-media sites of trying to have their cookies and eat them too. In last year’s cases involving Section 230 of the Communications Decency Act, the companies said they should be immune from liability for dangerous content on their sites; but now they claim to exercise editorial discretion. There’s no double standard, Mr Clement explained in response. An anthologist may decide which short stories to include in a collection but is not herself author of any of the stories.

Mr Clement and Elizabeth Prelogar, President Joe Biden’s solicitor-general, may not have persuaded the most conservative wing of the court to side with the social-media platforms, but five or six justices were worried that the treatment of the companies by Florida and Texas threatened their First Amendment freedoms. Justice Brett Kavanaugh noted the “Orwellian” nature of a state that endeavours to “[take] over media”. The court’s precedents have clarified, he said, “that we have a different model here” and it is not one of “the state interfering with…private choices”.

John Roberts, the chief justice, echoed this sentiment, noting that the court’s “first concern” should be protecting the “modern public square” from state meddling. Justice Sonia Sotomayor voiced concern over laws “that are so broad that they stifle speech”. And Justice Elena Kagan discussed the public utility of sites that quell “misinformation” about voting and public health and filter out hate speech.

If the Supreme Court lets the laws take effect, Mr Clement argued, those priorities would be thrown out of the window. Social-media sites will lose their charm—and worse. With no ability to take down posts based on their ‘”viewpoint”, platforms would have to open their servers to debates they will rue. If you have to be viewpoint-neutral, he said, permitting users to post about suicide-prevention would entail allowing advocacy of suicide-promotion, too. Or “pro-Semitic” posts would mean you’re equally open to antisemitic views. “This is a formula”, he concluded, “for making these websites very unpopular to both users and advertisers.”

Yet worries from a majority of the court about what Ms Prelogar called the laws’ “very clear defect” may not suffice to give what Justice Alito dubbed the “megaliths” of social media a clean win. That’s because Florida’s law, at least, seems sloppily drafted enough to apply not just to giant platforms such as Facebook and YouTube but to e-commerce sites such as Etsy, Uber and Venmo. And NetChoice was seeking to get the laws thrown out entirely rather than merely narrowing their focus.

But, as Justice Kagan pointed out, Florida’s law seems to have a “plainly legitimate sweep”—applications that do not violate the First Amendment because they regulate not speech but conduct (requiring an Uber driver to pick up Republicans as well as Democrats, say). Those constitutional (if not so salient) corners of the law may be enough to thwart the effort to ditch them. A messy consensus seemed to emerge: send the cases back to the lower courts to sort out all the facts. Which means a year or two down the road, the justices may find themselves clicking refresh.

Economics

Protests against a regal presidency have been notably peaceful

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There is no need to send in the troops

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Economics

Gavin Newsom is ready for his close-up

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NORMALLY, GAVIN NEWSOM is loose. The Democratic governor of California talks with a staccato cadence, often flitting from one incomplete thought to the next. When he talks to journalists or asks a guest on his podcast a meandering question, he tends to use a lot of meaningless filler words: “in the context of” is a frequent Newsomism. But on June 10th he was clear and direct. “This brazen abuse of power by a sitting president inflamed a combustible situation,” he said during a televised address after President Donald Trump deployed nearly 5,000 troops to Los Angeles to quell protests over immigration raids. “We do not want our streets militarised by our own armed forces. Not in LA. Not in California. Not anywhere.”

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Economics

Consumer sentiment reading rebounds to much higher level than expected as people get over tariff shock

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A woman shops at a supermarket on April 30, 2025 in Arlington, Virginia.

Sha Hanting | China News Service | Getty Images

Consumers in the early part of June took a considerably less pessimistic about the economy and potential surges in inflation as progress appeared possible in the global trade war, according to a University of Michigan survey Friday.

The university’s closely watched Surveys of Consumers showed across-the-board rebounds from previously dour readings, while respondents also sharply cut back their outlook for near-term inflation.

For the headline index of consumer sentiment, the gauge was at 60.5, well ahead of the Dow Jones estimate for 54 and a 15.9% increase from a month ago. The current conditions index jumped 8.1%, while the future expectations measure soared 21.9%.

The moves coincided with a softening in the heated rhetoric that has surrounded President Donald Trump’s tariffs. After releasing his April 2 “liberation day” announcement, Trump has eased off the threats and instituted a 90-day negotiation period that appears to be showing progress, particularly with top trade rival China.

“Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,” survey director Joanne Hsu said in a statement. “However, consumers still perceive wide-ranging downside risks to the economy.”

To be sure, all of the sentiment indexes were still considerably below their year-ago readings as consumers worry about what impact the tariffs will have on prices, along with a host of other geopolitical concerns.

On inflation, the one-year outlook tumbled from levels not seen since 1981.

The one-year estimate slid to 5.1%, a 1.5 percentage point drop, while the five-year view edged lower to 4.1%, a 0.1 percentage point decrease.

“Consumers’ fears about the potential impact of tariffs on future inflation have softened somewhat in June,” Hsu said. “Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead.”

The Michigan survey, which will be updated at the end of the month, had been an outlier on inflation fears, with other sentiment and market indicators showing the outlook was fairly contained despite the tariff tensions. Earlier this week, the Federal Reserve of New York reported that the one-year view had fallen to 3.2% in May, a 0.4 percentage point drop from the prior month.

At the same time, the Bureau of Labor Statistics this week reported that both producer and consumer prices increase just 0.1% on a monthly basis, pointing toward little upward pressure from the duties. Economists still largely expect the tariffs to show impact in the coming months.

The soft inflation numbers have led Trump and other White House officials to demand the Fed start lowering interest rates again. The central bank is slated to meet next week, with market expectations strongly pointing to no cuts until September.

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