⚡ Musk's SEC Battle, TikTokers' Migration, Meta's Misinformation Shift
Good morning. It’s Wednesday, January 15. Today we are covering:
Musk Accused by SEC of Cheating Twitter Investors Out of Millions
U.S. TikTokers flock to Xiaohongshu, baffling and bonding with Chinese users
Meta just flipped the switch that prevents misinformation from spreading in the United States
DJI will no longer stop drones from flying over airports, wildfires, and the White House
Biden admin's final rule banning Chinese connected cars also bars robotaxi testing on U.S. roads
Let’s dive in
Musk Accused by SEC of Cheating Twitter Investors Out of Millions
By Nicola M White via Bloomberg
The SEC has filed a lawsuit accusing Elon Musk of defrauding Twitter investors by delaying disclosure of his 5% stake in the company in early 2022, allegedly costing shareholders over $150 million.
The lawsuit claims Musk violated federal securities laws by withholding information that would have likely driven up Twitter's stock price as he prepared a takeover bid.
Musk's lawyer has denied the allegations, stating Musk did "nothing wrong" and arguing that the SEC lacks a legitimate case.
𝕏: NEWS: The SEC has sued Elon Musk in federal court over an alleged securities violation, according to a court docket. The SEC alleges Elon "committed securities fraud in 2022 by failing to disclose his ownership in Twitter and buying shares at “artificially low prices.” This lawsuit will likely go nowhere with a new head of the SEC about to come in. - Sawyer Merritt (@SawyerMerritt)
U.S. TikTokers flock to Xiaohongshu, baffling and bonding with Chinese users
By Kinling Lo via Rest of World
American TikTokers, facing a potential U.S. ban on TikTok, have migrated to the Chinese app Xiaohongshu, or "Little Red Book," creating an unexpected cultural exchange as they share memes, hometown photos, and discuss sensitive topics with Chinese users, despite the platform's strict censorship rules.
The influx of American users, dubbed "TikTok refugees," has made Xiaohongshu the most-downloaded app on the U.S. App Store, challenging its traditional focus on Chinese-speaking users and sparking debates about global expansion versus compliance with China's censorship laws.
This trend has raised concerns about cross-cultural barriers and the app's ability to manage sensitive content, with experts suggesting Xiaohongshu may need to separate domestic and international users, similar to ByteDance's strategy with TikTok and Douyin.
𝕏: While Chinese users know when to self-censor, Americans don’t. On Xiaohongshu aka RedNote, they ask about the Ukraine War, the Chinese govt, gay people. Some locals reminded the newcomers not to discuss “politics, religion, and drugs.” w/ @kinlinglo - Viola Zhou (@violazhouyi)
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Meta just flipped the switch that prevents misinformation from spreading in the United States
By Casey Newton via Platformer
Meta has ended its U.S. fact-checking program, disabled misinformation penalties, and altered content moderation policies, allowing unchecked spread of hoaxes like those seen in the 2016 election, while signaling alignment with the incoming Trump administration.
The company plans to replace professional fact-checkers with a volunteer-based annotation system similar to X's Community Notes, but has provided few details on its implementation timeline or effectiveness.
Critics warn these changes could amplify harmful misinformation, undermining years of integrity efforts, as Meta dismantles tools like CrowdTangle that previously tracked viral content trends.
𝕏: wow. Upon Court order, incriminating exhibits were unsealed at 3:30am in an AI lawsuit against Meta. Once past a 'fake privilege,' it appears Zuckerberg approved the use of a highly controversial, pirated dataset. Note OpenAI, too? AI companies with no ethics or guardrails. - Jason Kint (@jason_kint)
DJI will no longer stop drones from flying over airports, wildfires, and the White House
By Sean Hollister via The Verge
DJI has removed its geofencing restrictions in the U.S., allowing drones to fly over previously prohibited areas, including airports, wildfires, and the White House, replacing mandatory blocks with dismissible warnings.
The change aligns with FAA Remote ID rules, placing responsibility on drone operators to follow regulations, but has raised safety concerns from experts who argue that geofencing significantly enhanced aviation safety.
Critics warn the decision could lead to increased risks, especially as some drones, like sub-250-gram models, are exempt from Remote ID requirements, complicating enforcement and incident investigations.
𝕏: China’s DJI, the world’s largest drone manufacturer, has removed US geofencing… These drones can now fly over US military bases and in other “no-fly” zones, such as DC. The United States needs to wake up. - Geiger Capital (@Geiger_Capital)
Biden admin's final rule banning Chinese connected cars also bars robotaxi testing on U.S. roads
By Rebecca Bellan via TechCrunch
The Biden administration has issued a final rule banning the sale, import, and testing of Chinese and Russian connected vehicles on U.S. roads, citing national security concerns over potential misuse of sensitive data by foreign adversaries.
The rule includes phased bans, with software restrictions starting in 2027 and hardware prohibitions in 2029, but exempts vehicles over 10,000 pounds, allowing companies like BYD to continue assembling electric buses in the U.S.
Chinese autonomous vehicle firms, including WeRide, Pony AI, and Baidu’s Apollo, face the potential loss of California testing permits, as the Commerce Department’s ruling supersedes state allowances.
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