This article, part of the DSA Observatory series, provides insights from a keynote address at the second DSA and Platform Regulation Conference, reflecting on the implications of the Digital Services Act. It highlights a significant recent development: TikTok’s sale of its U.S. operations to a consortium of American investors, showcasing how ownership of social media is entwined with geopolitical power dynamics. This event parallels Elon Musk’s acquisition of X (formerly Twitter), emphasizing the rise of tech oligarchs who wield substantial influence over public discourse.
The author critiques the platform governance community for largely overlooking the role of shareholders in social media ownership and proposes a three-step agenda for researchers and policymakers: (1) mapping ownership structures, (2) studying ownership’s effects on social media, and (3) introducing regulatory safeguards for transparency and accountability.
A deep dive into ownership structures reveals contrasts between firms like Apple and Microsoft, which have dispersed ownership, and firms like Meta and Alphabet, which use dual-class stock structures, leading to concentrated control. Notably, Musk’s leadership of X reflects a “private logic” of ownership that leans towards political motivations, with significant implications for content governance.
In light of recent developments such as the establishment of TikTok USA, the article argues for a new regulatory paradigm in the U.S. that targets ownership to influence content moderation. The complex web of ownership among major stakeholders raises critical questions about the direction of public discourse and the potential for political manipulation.
For Europe, the article suggests that ownership concentration poses challenges for media pluralism and calls for transparency, independence safeguards, and potential ownership limits on foreign entities. This could lead to a discussion of whether Europe requires its own equivalents to platforms like TikTok or Instagram, aimed at fostering democratic ownership structures. Ultimately, the piece advocates for further research into ownership’s political incentives and its broader implications on social media governance.
