Axios Login

November 07, 2022
Spent an enjoyable Sunday evening switching between watching some great football on NBC and whatever this was on Twitter.
Situational awareness: Meta is planning large-scale layoffs of thousands of workers — a company first — that could begin as soon as Wednesday, the Wall Street Journal reported, citing sources.
Today's Login is 1,275 words, a 5-minute read.
1 big thing: More noise, less action for tech under a GOP Congress
Illustration: Sarah Grillo/Axios
Republican control of the House, Senate or both would trigger a big shift for Big Tech on the Hill away from Democrats' privacy and antitrust crusades and toward the GOP's chief tech complaint — perceived platform bias against conservative-leaning content, Axios' Ashley Gold and Peter Allen Clark report.
Why it matters: The outcome of Tuesday's elections will shape the next two years of tech legislation and hearings in D.C. But prospects for enacting new laws are likely even dimmer if Republicans control Congress' agenda while a Democrat remains in the White House.
What they're saying: "Content will far and away be the biggest issue" in a Republican-run Congress, one tech policy executive told Axios. "It's unlikely something gets done, but it will be a serious and big issue."
- House Minority Leader Kevin McCarthy's Republican agenda outline names Republican tech priorities: "Greater privacy and data security protections, equip parents with more tools to keep their kids safe online, and stop companies from putting politics ahead of people."
Details: Conservatives in the House have long said they want to repeal Section 230 of the Communications Decency Act, which largely shields tech platforms from liability for what users post.
- House and Senate Republicans also want strengthened antitrust enforcement and loosened rules for app stores as Democrats do. But conservatives walk a fine line on this issue, as there's resistance to giving the Federal Trade Commission and its chair, Lina Khan, too much power.
- Bills that crack down on Chinese-owned tech companies that do business in the U.S. or have U.S.-based customers are also likely.
- Tech CEOs are likely to be hauled back to the Hill, as well, in a reprise of a Trump administration ritual.
Who to watch: McCarthy has made criticism of Big Tech one of his priorities since the Trump era, and will surely continue in that vein if he takes the House gavel.
- As chair of the the House Energy and Commerce Committee, Rep. Cathy McMorris Rodgers (R-Wash.) would be in charge of tech efforts there, with a focus on Section 230.
- Senate Judiciary committee leader Sen. Chuck Grassley (R-Iowa) partnered with Sen. Amy Klobuchar (D-Minn.) on a Big Tech antitrust bill that almost made it to the full Senate floor last Congress, but efforts to revive that proposal will face bigger challenges with Republicans in charge.
- Sen. Mike Lee (R-Utah), the ranking Republican on Judiciary's antitrust subcommittee, is wary of Big Tech but even warier of giving the government agencies tasked with antitrust enforcement too much power.
Meanwhile: If Democrats hold onto control of either or both houses, expect them to keep hammering away at issues like antitrust, online privacy concerns, and gaps in content moderation that allow misinformation to spread and put children at risk.
- Big Tech firms are still buying up smaller companies in ways many Democrats view as anti-competitive.
- Revelations about social media's effects on children sparked a flurry of hearings and grim findings in the current session of Congress, but lawmakers failed to enact new regulations.
Yes, but: The Democrats' tech agenda over the last two years has been swept away by shifting priorities and gridlock in the Senate.
- Several bills, like the American Innovation and Competition Online Act and the Kids Online Safety Act, had vocal bipartisan support. But they could not gather momentum to garner a filibuster-proof 60 votes in the upper chamber.
- Issues such as infrastructure spending, abortion rights, gun control and climate took precedence over tech. Congress did pass a $280 billion package that aimed to boost the domestic chip-making industry.
The intrigue: The Supreme Court is set to hear arguments in cases about Section 230 as well as challenges to laws in Texas and Florida aiming to limit platforms' powers to moderate content.
- Decisions in such cases could change the tech industry's landscape far more radically than anything Congress is likely to be able to manage.
What's next: Whatever happens Tuesday, the Biden administration says it plans to push Congress to approve antitrust legislation, among other priorities, during the coming post-election lame duck session.
- "There is bipartisan support for these antitrust bills, and no reason why Congress can't act before the end of year," White House deputy press secretary Emilie Simons told Axios.
2. Catch up quick: A wild weekend at Twitter
Illustration: Annelise Capossela/Axios
The drama at Twitter continued throughout the weekend. Key developments...
Twitter is asking some laid-off staffers to remain: The company appears to have changed its mind about at least some of the thousands of workers it laid off Friday.
- Twitter needs a number of the affected workers to maintain the service and help launch new features, according to sources, as well as reports from Platformer's Casey Newton and Bloomberg.
Twitter is delaying its plan to give all its Blue subscribers a blue checkmark until after Tuesday’s election, according to the New York Times.
- It comes as researchers and activists have warned that the change could open the door to fraud and misinformation.
Twitter will permanently ban "engaging in impersonation": Musk declared Sunday that users who impersonate other users without "clearly specifying 'parody'" will be permanently suspended without warning.
- A number of users had greeted his earlier declaration that "Comedy is now legal on Twitter" by changing their profile names to "Elon Musk."
- Previously, in explaining why he thinks former president Trump's banned account should be restored, Musk had said, "Permanent bans just fundamentally undermine trust in Twitter."
Advertisers want none of the Twitter drama: Major advertisers are pausing their spending on Twitter, and Musk has blamed pressure from activist groups.
- But, as Axios' Sara Fischer reports, the marketers are more worried by Musk himself, whose free-speech pledges and layoffs could undermine the platform's ability to rein in hate speech, bullying and misinformation.
- Musk didn't help his case by threatening to go "thermonuclear" on brands who pulled their ads.
3. China COVID woes slow iPhone 14 Pro shipments
Image: Apple
Apple said Sunday that it will ship fewer iPhone 14 Pro and Pro Max smartphones than it had anticipated because of COVID-19 restrictions at a plant in Zhengzhou, China, that have "significantly reduced" manufacturing output.
Why it matters: The move will have a significant impact on Apple's quarterly sales and make it harder for consumers to get their hands on Apple's high-end models.
What they're saying: "We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models," Apple said in a rare Sunday press release. "However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products."
- Apple said the Zhengzhou plant is its primary facility for making the pro models and added it is "working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker."
- Bloomberg previously reported on the restrictions limiting output at the plant.
4. Charted: How Apple held on as rivals fell

Tech stocks led the monster stock-market rally that we saw in the second half of 2020 and all of 2021. They have also led the 2022 decline.
- Apple has had the best of both worlds — a stunning rise and relatively modest fall, Axios chief financial correspondent Felix Salmon writes.
🔭 Zoom out: At one point last week, Apple was worth more than Amazon, Meta and Alphabet — combined.
5. Take note
On Tap
- Lyft and Take Two Interactive Software report earnings today, with most tech companies looking to avoid scheduling anything on Election Day.
Trading Places
- BSA | The Software Alliance has hired Michael O’Brien to be VP of global public affairs.
ICYMI
- NSO Group, the Israeli maker of the Pegasus spyware, has reportedly cut staff and raised prices. (Bloomberg)
6. After you Login
Check out a parrot in Chile stealing a broadcast reporter's AirPod while he was on the air.
Thanks to Scott Rosenberg and Peter Allen Clark for editing and Nick Aspinwall for copy editing this newsletter.
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