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Elon Musk Accuses Twitter of Hiding Litigation Details Against Indian Government in $44 Billion Deal

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Tesla CEO Elon Musk, who is locked in a court battle with Twitter over a failed acquisition bid that Twitter now intends to force through, said that the social media giant jeopardized its third largest market by failing to disclose “risky” litigation against the Indian government.

In a countersuit in a Delaware court which was filed under seal last Friday and made public Thursday, Musk also claimed that he was “hoodwinked” into signing the deal to buy the San Francisco-based social media company.

Musk said that Twitter should follow the local law in India, according to the court documents. Snapshots of the court documents were seen circulating on Twitter posted by New York Times Tech Reporter Kate Conger @kateconger.

“In 2021, India’s information technology ministry imposed certain rules allowing the government to probe social media posts, demand identifying information, and prosecute companies that refused to comply. While Musk is a proponent of free speech, he believes that moderation on Twitter should “hew close to the laws of countries in which Twitter operates” read a portion of the legal filings in Twitter Vs Musk lawsuit, as posted by New York Times tech reporter Kate Conger in a series of tweets.

To Elon Musk’s averments in the court filings, Twitter responded that it “respectfully refers the Court for their complete and accurate contents. Twitter lacks knowledge or information sufficient to form a belief as to the truth of the allegations,” and said it “therefore denies them on that basis.”

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Referring to a petition filed in Karnataka High Court in July, Musk also objected to Twitter’s failure to disclose litigation against the Indian government.

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“Twitter avers that it has challenged certain blocking orders issued by the Indian government under Section 69A of the Information Technology Act, directing Twitter to remove certain content from its platform, including content from politicians, activists, and journalists, and that Twitter’s legal,” the company said in its response.

Twitter, through its lawyer at the Karnataka High Court, said that their India business would close if they complied with Indian government orders to block content that competent authorities had deemed illegal. The High Court had issued notices to the Centre and adjourned the hearing for August 25th.

The microblogging website and the world’s richest man are now heading to trial on October 17 after Musk sought to abandon his deal to acquire Twitter over what he says is a misrepresentation of fake accounts on the site.

Twitter is trying to compel Musk to follow through on the deal while accusing him of sabotaging it because it no longer served his interests.

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Earlier in April, Musk reached an acquisition agreement with Twitter at $54.20 (roughly Rs. 4,180) per share in a transaction valued at approximately $44 billion (roughly Rs. 3,37,465 crore)

In May, Musk put the deal on hold to allow his team to review the veracity of Twitter’s claim that less than 5 percent of accounts on the platform are bots or spam.


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Biden Administration Tells US Supreme Court Section 230 of Communications Decency Act Has Limits

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The Biden administration argued to the US Supreme Court on Wednesday that social media giants like Google could in some instances have responsibility for user content, adopting a stance that could potentially undermine a federal law shielding companies from liability.

Lawyers for the US Department of Justice made their argument in the high-profile lawsuit filed by the family of Nohemi Gonzalez, a 23-year-old American citizen killed in 2015 when Islamist militants opened fire on the Paris bistro where she was eating.

The family argued that Google was in part liable for Gonzalez’ death because YouTube, which is owned by the tech giant, essentially recommended videos by the Islamic State group to some users through its algorithms. Google and YouTube are part of Alphabet (GOOGL.O).

The case reached the Supreme Court after the San Francisco-based 9th US Circuit Court of Appeals sided with Google, saying they were protected from such claims because of Section 230 of the Communications Decency Act of 1996.

Section 230 holds that social media companies cannot be treated as the publisher or speaker of any information provided by other users.

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The law has been sharply criticised across the political spectrum. Democrats claim it gives social media companies a pass for spreading hate speech and misinformation.

Republicans say it allows censorship of voices on the right and other politically unpopular opinions, pointing to decisions by Facebook and Twitter to ban dissemination of a New York Post article about the son of then-Democratic candidate Joe Biden’s adult son, Hunter, in October 2020.

The Biden administration, in its filing to the Supreme Court, did not argue that Google should be held liable in the Gonzalez case and voiced strong support for most of Section 230’s protections of social media companies.

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But the DOJ lawyers said that algorithms used by YouTube and other providers should be subject to a different kind of scrutiny. They called for the Supreme Court to return the case to the 9th Circuit for further review.

Attorneys for Google could not be reached for comment on Wednesday night.

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© Thomson Reuters 2022


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WhatsApp Avatar Feature Rolling Out to Users With Support for 36 Customisable Stickers

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WhatsApp has begun rolling out Avatars, a feature that allows users to make a digital representation of themselves. The Meta-owned instant messaging service previously rolled out the Bitmoji-like feature to beta testers on Android and iOS. The feature which is now making its way to all users as part of a full-scale rollout, will allow users to curate their digital representation or personal avatar from a combination of hairstyles, facial features, and outfits, according to the company. WhatsApp will also provide 36 custom stickers that reflect different emotions and actions.

The instant messaging platform announced the new Avatars feature via a blog post on Wednesday. A user can set an Avatar as their WhatsApp profile photo, or use them as stickers. Meta says that these stickers will be available in 36 versions of popular emojis and actions, adding that avatars could provide users “a fast and fun way to share feelings with friends and family.”

Personalised avatars were first made popular on social media by Snapchat which now owns Bitmoji which was initially created by Bitstrips. Instagram, which is also owned by Meta, previously added support for Avatars, just like Facebook and Facebook Messenger.

WhatsApp’s support for Bitmoji-like 3D avatars appears to be the same set of models that are available on other Meta-owned apps. Facebook was the first amongst the Meta family to be introduced to Avatars through Messenger and the News Feed in 2019. A year later in 2020, the company added support for adding these digital avatars on Facebook comments and stories.

The company intends to serve Avatars as a mode for fun and creative expression as well as a privacy feature. Avatar can be a “great way to represent yourself without using your real photo so it feels more private,” added the company blog post.

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Users may access the Avatars feature by updating their WhatsApp to the latest version and navigating to Settings > Avatar > Create Your Avatar.

WhatsApp is also promising to bring future enhancements in the form of lighting, shading, hairstyle textures, and more that will improve the experience.

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The feature was previously tested with a few beta testers on WhatsApp beta version 2.22.23.9 for Android, about a month before it was eventually rolled out to all users.


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Twitter Blue Pricing to Be Lowered for Web Users to $7, App Store Subscribers to Pay $11: Report

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Twitter plans to change the pricing of its Twitter Blue subscription product to $7 (roughly Rs. 600) from $7.99 (roughly Rs. 700) if users pay for it through the website, and $11 (roughly Rs. 900) if they do so through its iPhone app, the Information reported on Wednesday, citing a person briefed on the plans.

The move was likely a pushback against the 30 percent cut that Apple takes on revenues from apps on its operating system, the report said, with lower pricing for the website likely to drive more users to that platform as opposed to signing up on their iPhones.

It did not mention whether pricing would change for the Android platform as well.

Last week, Musk accused Apple of threatening to block Twitter from its App Store without saying why in a series of tweets that also said it had stopped advertising on the social media platform.

In the first quarter of 2022, Apple was the top advertiser on Twitter, spending $48 million (roughly Rs. 390 crore) and accounting for more than 4 percent of total revenue for the period, the Washington Post reported, citing an internal Twitter document.

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Among the list of grievances tweeted by Musk was the up to 30 percent fee Apple charges software developers for in-app purchases.

He also posted a meme suggesting he was willing to “go to war” with Apple rather than paying the commission.

The fee has drawn criticism and lawsuits from companies such as Epic Games, the maker of Fortnite, while attracting the scrutiny of regulators globally.

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The commission could weigh on Musk’s attempts to boost subscription revenue at Twitter, in part to make up for the exodus of advertisers over content moderation concerns.

Musk later met Apple chief executive Tim Cook at the company’s headquarters and later tweeted that the misunderstanding about Twitter being removed from Apple’s App Store was resolved.

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Twitter and Apple did not immediately respond to a request for comment.

© Thomson Reuters 2022


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