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Tighter moderation and copyright requirements can stop everything. The USA had excempted platforms from holding them responsible to allow broad innovation by everybody. The EU does the opposite and ads more requirements. Nothing that kills an established company but it's deadly for anything but the most serious startups.
The EU must know about the US excemption. They are not ignorant so they chose to not create competition and to leave that market to the US.
True, but that would be valid for everyone. So as it could stop an emerging social media it could also stop an estabilished social media, and EU historically does not go after the small fishes.
I am sure that you understand that if EU put up tighter moderation and copyright requirements the first social media to be tanked would be Facebook and not the emerging social media.
Not always.
But the way the USA went create a grey area were the social media can legally say "I am not responsible for what the users post" and on the other hand the "the platform is mine and I can decide what goes on it", which in my opinion is a worse situation since now the moderation is in the hand of a company.
We had many examples of social media that on one hand say they are excempted and on the other say that they can decide what goes on the site. Sorry but it not works this way: you are responsible for everything on your site and then you can decide what goes on it or you are not responsible and then you cannot decide what goes on it (granted that is legal). You cannot have both ways.
I disagree. If Facebook would be held responsible for its contents like a startup, I would bet that it would be deadly for Facebook and not the startup. Look at the GDPR, there were reasons why these companies have fought tooth and nail against it.
Which, again, does nothing to stop someone to try to build a new social media.
It's not prohibitive but an obstacle. Facebook can build neural networks to automate legal obligations and it can hire lawyers to minimize damage when they fail. Everybody can try though to build a new social media but nobody will.