Showing posts with label X Corp. Show all posts
Showing posts with label X Corp. Show all posts

Tuesday 28 November 2023

Confirmation that X Corp (formerly Twitter Inc) closed and left closed, accessible channels for the public to report misinformation/disinformation & malignant falsehoods found on its social media platform "X" during the Australian Voice to Parliament Referendum

 

Confirmation that X Corp (formerly Twitter Inc) - and its 95 shadowy equity partners - closed and left closed, accessible channels for the public to report misinformation and disinformation on its social media platform "X" during the Australian Aboriginal and Torres Strait Islander Peoples Voice to Parliament national referendum period from its initial announcement through to polling day.


Digital Industry Group Inc. (Digi), Media Statement, 27 November 2023:


Complaint By Reset Australia Against X (F.K.A Twitter) Upheld By Australian Code Of Practice On Disinformation And Misinformation Independent Complaints Sub-Committee


A decision by an independent committee in relation to a complaint by Reset Australia against X (f.k.a Twitter) under the Australian Code of Practice on Disinformation and Misinformation (ACPDM) has been reached today.


The Digital Industry Group Inc. (DIGI) is releasing this decision in its role as the administrator of the ACPDM. Eligible complaints made by the public, via the complaints portal that DIGI administers on its website, are escalated to an independent Complaints Sub-committee. These functions and the committee’s composition are detailed on the DIGI website here.


On Thursday, 5 October 2023, DIGI received a complaint from Reset Australia (the complainant) claiming that X (f.k.a Twitter) had breached its mandatory obligations under the ACPDM, in particular Outcome 1C.


DIGI assessed the complaint as an ‘eligible complaint’ – under the ACPDM’s Termsof reference for Complaints Facility and Complaints Sub-committee (ACPDM complaints process) – and, on Friday, 6 October 2023, notified the independent Complaints Sub-committee of the complaint concerning a material breach of the code. The complaint was handled in accordance with the process set out in the ACPDM complaints process.


DIGI has today published the public statement written by the independent Complaints Sub-committee, which includes information about its findings and the process it undertook. These statements, set out below, have been written by the independent Complaints Sub-committee, and are being released by DIGI in this media release and on the DIGI website in line with DIGI’s role as the administrator of the ACPDM.


Statements Attributable To The Independent Complaints Sub-Committee:


The finding of the ACPDM governance Complaints Sub-Committee into the complaint by Reset Australia against X.

Under section 12 (v) of the Complaints Sub-Committee Terms of Reference, X committed a serious breach of the code and has refused to cooperate with DIGI or undertake any remedial action.


As will be outlined in detail below, no further investigation of the breach is warranted, and X should not be extended any opportunity to remedy the breach. In the Sub Committee’s opinion, no correction made now could remedy the breach in relation to this complaint, the ACPDM code, and the wider community.


The complaint related to X closing and leaving closed, accessible channels for the public to report mis and disinformation on the platform during the Australian Voice to Parliament Referendum.


Accordingly, the Sub-Committee’s deliberations focused solely on the issue of a publicly available system to report a platform’s breaches of their policies and not on any content that might have been seen as mis or dis information.


The Sub-Committee’s Terms of Reference state that if the Complaints sub-committee determines the issue is serious, and the Signatory refuses to take remedial action or co-operate in an investigation or a correction is not possible, withdrawal of signatory status is available as a sanction.


The Sub-Committee noted that the example given in the Terms of Reference succinctly summarises X’s breach: For example, if the Signatory has, without reasonable excuse, failed to provide a mechanism to the public to make reports of breaches of its policies for an extended period.


Therefore, the Complaints Sub-Committee has decided to withdraw X’s signatory status of the ACPDM Code.


Background:


On Friday, Oct 6, 2023, the independent Complaints Sub-Committee was advised that Reset Australia had lodged a complaint about X with DIGI.


In part it said: It is no longer possible on X for users to report content that violates X’s Civic Integrity policy. To be clear, content that violates X’s published policies around ‘Misleading information about how to participate’, in an electoral process, or violate rules around voter ‘Suppression’ and ‘Intimidation’ cannot be reported using publicly available tools.


The code states “Signatories will implement and publish policies, procedures and appropriate guidelines that will enable users to report the types of behaviours and content that violates their policies under section 5.10. 5.12.”


The Sub-Committee, DIGI, Reset Australia, gathered for a Zoom meeting on Monday, Nov 13. X’s relevant executive was given adequate notice to attend and had confirmed as much but withdrew less than two hours before the meeting citing ill health. No written submission was provided to the meeting by X. Under the Complaints Sub-Committee terms of reference, DIGI attended as observers and acted in its administration capacity as secretary of the complaints Sub-Committee.


Reset, in their evidence, confirmed the claim in their complaint, that the accessible channels for the public to report mis and disinformation in the politics category was not available at the time of their complaint and remains unavailable.


This situation was confirmed by DIGI upon receipt of the Reset complaint. Additionally, at the request of the Complaints Sub-committee, an independent comprehensive survey of the X website was undertaken by RMIT Cross Check, following the commencement of the sub-committee’s investigation.


The survey also confirmed the absence of publicly accessible channels to report mis and disinformation in the politics category. As of the writing of this report, the publicly available tools referred to above remain unavailable.


X promised documents in their defence would be lodged the day after the meeting, but the documents were never submitted.


A list of questions from the Sub-Committee was sent to X following the November 13 meeting with a response date of November 21. No response has been received and no explanation offered for the failure to respond.


Repeated attempts to engage with X by DIGI and Reset Australia have failed to elicit any response to the complaint. The sub-committee has had no contact with X in relation to this matter.


On Monday Nov 27 the Sub-Committee met with DIGI and conveyed their finding noting that X’s refusal to engage in any way with the process was disappointing and irresponsible.


Complaints Sub-Committee,

27th November 2023


<Statements attributable to Complaints Sub-Committee end>


NOTE:


The ACPDM was developed in response to policy announced by the Morrison Coalition Government in December 2019, in relation to the ACCC Digital Platforms Inquiry, where the digital industry was asked to develop a voluntary code of practice on disinformation. DIGI developed the original code with assistance from the University of Technology Sydney’s Centre for Media Transition, and First Draft, a global organisation that specialises in helping societies overcome false and misleading information.


Unfortunately, being a voluntary code originally entered into by twelve large international technology companies along with five associate members and, with X Corp expelled for having chosen to ignore the complaint received by DIGI, full membership has now fallen to eleven companies - Apple, Discord, eBay, Google, Linktree, Meta, Snap, Spotify, TikTok, Twitch and Yahoo!.


Friday 6 October 2023

Is social media platform "X" now a financial blackhole threatening to consumer its investors & 'inconvenience' its bankers?

 

Reuters, 4 October 2023:


NEW YORK, Oct 3 (Reuters Breakingviews) - X is still worth something, but not for the people running it. Boss Linda Yaccarino is set to present her plans for the social network formerly known as Twitter to bankers holding nearly $13 billion of its debt, the Financial Times reported. Looming over talks is the likelihood that X’s value is substantially less than even that figure.


This week’s meeting with seven banks led by Morgan Stanley (MS.N) that supported Elon Musk’s $44 billion acquisition of the platform caps off a tumultuous first four months for Yaccarino, a former advertising executive at Comcast-owned (CMCSA.O) NBCUniversal. That includes a contentious interview last week in which she seemed caught off-guard by Musk’s announced ambition to charge X users a monthly fee to combat bots.


Despite Musk’s big pronouncements about pushing into subscriptions, X has historically relied on advertising, which contributed over 90% of revenue when it was a public company. But that business is spiraling, and the platform’s shifting policies could threaten more branding deals. In July, Musk posted that cash flow was negative because of a 50% drop in advertising sales.


The apparent strategic disconnect between the company’s ad-focused chief executive and its subscription-hungry owner comes as valuations are falling. TikTok parent ByteDance was recently valued at $224 billion, down by about a quarter from a year ago, the Information reported. Disappearing messaging app Snap’s (SNAP.N) market value has slumped by more than 10% over the past year.


Put it all together, and X isn’t just worth less than Musk paid for it, but likely less than its debt. Assume that the company’s revenue last year was $4.7 billion, based on results before it was taken private. If advertising has dropped by half, then this year’s sales should be a bit over $2.5 billion. Put that on the same enterprise-value-to-sales multiple as Snap, which is down to a mere 3 times, and X is worth around $8 billion.


The company is so far covering its hefty interest payments of $300 million per quarter, and Yaccarino sees profitable days ahead. But between Musk’s impromptu product shifts and the need to woo back advertisers, her task is daunting. If things deteriorate further, the company’s bankers - already nursing billions in on-paper losses - face the prospect of taking back the keys to a diminished platform that is worth less than even their claim on it. Like a financial black hole, X threatens to consume most of whatever value it once had.


(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.)



The seven banks which reportedly facilitated Musk’s US$13 billion loan arrangements so that he could purchase Twitter Inc/“Twitter” now known as X Corp/“X”:


Bank of America

Barclays

BNP Paribas - $6.5 billion term loan facility

Mizuho - $500 million revolving loan facility

Morgan Stanley - $3 billion secured bridge loans

MUFG - $3 billion unsecured bridge loans

Societe Generale

[Reuters, 7 October 2023]



BACKGROUND


USA Today, 4 October 2023, excerpt:


X, formerly known as Twitter, has lost most of the guardrails it once had. Massive employee cuts, in particular, to content moderation teams, more divisive content, the removal of state-affiliated media labels, and a blind allegiance to free speech by Elon Musk have made the platform much more susceptible to misinformation and disinformation. COVID, Russia’s invasion of Ukraine and the 2024 election are all vulnerable topics…..


Dana Taylor:


Pivoting to the 2024 US presidential election, there are quite a few nefarious forces out there including both state and non-state actors who are chipping away at American's confidence in election integrity and would like nothing more than to see the US democracy fail. Elon Musk also recently announced he was cutting X'S global election integrity team in half. Is it looking worse than 2020? And if so, how?


Josh Meyer:


For the story that I wrote, I talked to a lot of experts in, I do think there was a tremendous amount of concern that this could be the worst one ever. Hopefully that won't be the case, but we have a lot of state run actors now. We've got China, Iran, and, of course, Russia looking to meddle in the election. You've got a lot of right-wing extremist groups doing it. Some of the security information specialists that I talked to said you even have kids in their parents' basement who could manipulate things…..


According to Fiber in 2021 there were 5.8 million Twitter users in Australia.