White House officials said President Donald Trump would sign an executive order aimed at curbing the industry's influence.
Bloomberg said the order could increase the litigation risk for social media companies by having the Federal Communications Commission fine-tune rules on removing or censuring user content. At present, social media companies need only to act in 'good faith' when acting on inappropriate material.
Bloomberg also reported that the Department of Justice could be asked to convene a panel of states Attorneys General to review spending and operational practices on social media platforms.
The executive order threat follows a series of Tweets from the President aimed at what he deemed unfair and biased treatment of 'conservative voices' on social media platforms following the fact-checking of a message on voter fraud by Twitter executives.
Twitter CEO Jack Dorsey said the fact-check was necessary as the Tweets "may mislead people into thinking they don’t need to register to get a ballot", adding the company would update the link on the President's Tweets to "make this more clear."
Ultimately, Jim Cramer says Trump's executive order isn't constitutional. He details what he thinks will happen if the president takes pen to paper in the video above.
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