The growth of commerce on the Internet has impacted nearly every industry in one form or another. In the area of technology, communication, and finances there have been many new platforms and technologies developed. Social media and crypto have seen rapid growth over the years and, as with any new industry finding its way into the marketplace, there will be regulatory concerns. New industries often come under the attention of regulators because new laws need to be applied to their industries or existing laws more carefully enforced when they are applied. Here are three companies currently facing pressure from regulators as we move into 2024.
Companies Facing Regulatory Pressure in 2024
- X (formerly Twitter): Twitter is among one of the most well-known social media platforms, but it is also one that is facing pressure from various regulatory bodies going into 2024. Some of the pressures encountered by the platform include having to meet content guidelines in the European Union, general complaints about content as it relates to laws about harassment and hate speech, disinformation, and suits concerning labor regulation and payment of past employees.
- Binance: crypto trading platform Binance, known for its BNB Chain L1 blockchain and various other activities in the crypto space, also faces pressure from governmental regulation. Claims from multiple regulators accuse the company of operating without proper licensing and improper response to these compliance complaints. The company has claimed it will address these issues and has stated it intends to increase the size of its compliance team to fix these issues and avoid future errors. The ongoing regulatory concerns have caused Binance to have difficulties in finding partner banks and the company’s market share has dropped due to the regulatory and banking concerns they are encountering.
- Meta: known for Facebook and other digital products. Meta does face regulatory issues heading into 2024. One of the key issues was the violation of privacy laws in the European Union as it relates to properly managing user data and personal information. The company was found to have violated established EU rules about user privacy and had to pay a sizable fine of 1.3 billion dollars because of this. There are also antitrust laws that have been brought up in the EU with the company. In the United States, there are questions about regulating Meta (and wider social media) based on harassment, misinformation, and the spreading of dangerous hate speech. Broader regulation questions are not just about the content or the sharing of personal information but about the impact the platforms have had on young people and whether Meta properly manages its platforms.
Final Thoughts
The internet has seen the creation of many unique and innovative companies in areas such as social media, finance, and technology. With the growth in these sectors and new marketplaces being developed, the growth of regulations and laws governing standards of conduct and behavior is to be expected. While the above companies do face issues with regulators, there are solutions to these issues, and working to achieve compliance helps create a more stable and predictable environment for both end users and future companies working in these sectors.
