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Brownstone Institute

Et Tu, PayPal? The EU’s Role in Defunding Dissent

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This article was originally published by the Brownstone Institute

BY ROBERT KOGON

PayPal appears unsure whether it should participate in the current crusade against online “disinformation” or not.

First it closed the PayPal accounts of The Daily Sceptic and the Free Speech Union, and even the personal account of their founder Toby Young, and then, two weeks later, it restored them. Then it announced that it would be docking $2,500 from anyone who uses its services in connection with “promoting misinformation” and then, two days later, it again reversed course and announced that this language was never intended to be included in its new Acceptable Use Policy (AUP).

It was not intended to be included? Well, where did it come from then?

Could the EU’s Code of Practice on Disinformation and its Digital Services Act (DSA), about which I wrote in my last Brownstone article, have something to do with PayPal’s skittish forays into “combatting disinformation?” Well, yes, they could, and you may rest assured that EU officials or representatives have already had a word with PayPal about them.

As discussed in my previous article, the Code requires signatories to censor what is deemed by the European Commission to be disinformation on pain of massive fines. The enforcement mechanism, i.e. the fines, has been established under the DSA.

PayPal is not, for the moment, a signatory of the Code. Furthermore, since it is neither a content platform nor a search engine – the potential channels of “disinformation” targeted in the DSA – it is obviously not in a position to censor per se. But the very first commitment in the “strengthened” Code of Practice unveiled by the European Commission last June is dedicated precisely to demonetization.

Unsurprisingly, given the nature of the business models of the most prominent signatories – Twitter, Meta/Facebook and Google/YouTube – this commitment and the six “measures” it comprises are mostly related to advertising practices.

But the “Guidance” that the Commission issued in May 2021, prior to the Code’s drafting, explicitly calls for “broadening” efforts to defund alleged purveyors of disinformation and contains the following highly pertinent recommendation:

Actions to defund disinformation should be broadened by the participation of players active in the online monetisation value chain, such as online e-payment services, e-commerce platforms and relevant crowd-funding/donation systems. (p. 8; emphasis added)

PayPal, the online e-payment service par excellence, was thus already in the Commission’s sights.

Somewhat illogically, given their own emphasis on advertising and the fact that an advertising-based revenue model and a donation or pay model would ordinarily be regarded as alternatives, the signatories of the “strengthened” Code thus pledged to

…exchange best practices and strengthen cooperation with relevant players, expanding to organisations active in the online monetisation value chain, such as online e-payment services, e-commerce platforms and relevant crowd-funding/donation systems…. (Commitment 3)

But the outreach to PayPal has not only occurred via third parties like the Code signatories.

In late May, shortly after the text of the Digital Services Act had been finalized – but before the European Parliament had even had the opportunity to vote on it! – an 8-member delegation from the parliament was dispatched to California to discuss the DSA and the related Digital Markets Act (DMA) with relevant “digital stakeholders.”

In addition to Code signatories Google and Meta, the “host list,” so to say – since the parliamentarians were to be the guests and they were inviting themselves! – also included PayPal. (See the delegation report here.)

Curiously, Twitter was not included among the companies and organizations to be visited, perhaps because of the turmoil unleashed by Elon Musk’s takeover bid. But, as touched upon in my prior article, Thierry Breton, the EU’s Internal Market Commissioner, had already paid a visit to Musk in Austin, Texas earlier in the month to have a word with him about the DSA.

No less than three of the delegation’s eight members – Alexandra Geese, Marion Walsmann and delegation head Andreas Schwab – were German, whereas Germans only account for around 13% of the total members of the parliament. This stark overrepresentation is telling, since Germany has undoubtedly been the prime mover behind the EU’s censorship drive, having already adopted its own online censorship law in 2017 with the express motivation of “combatting criminal fake news in social networks” (p. 1 of the legislative proposal in German here).

The German legislation, commonly known as “NetzDG” or the Network Enforcement Act, threatens platforms with fines of up to €50 million for hosting content that infringes any of a variety of German laws that restrict speech in ways that would be unthinkable and unconstitutional in the United States. It is also the source of the Twitter notices that many Twitter users will have received informing them that their account had been denounced by “a person from Germany.”

As noted above, PayPal is not presently a signatory of the Code of Practice on Disinformation. On July 14, however, just nine days after the passage of the DSA, the Commission issued a “Call for interest to become a Signatory” of the Code. The call is explicitly addressed to, among others, “e-payment services, e-commerce platforms, crowd-funding/donation systems.” The latter are identified as “providers whose services may be used to monetize disinformation.”

Evidently not satisfied merely with “deplatforming,” the Commission has thus made clear that the next frontier in its combat against “disinformation” is attempting to defund dissenters who, despite their discrimination by or banishment from the major online platforms, have managed to preserve a place in the online discussion thanks to platforms of their own.

PayPal, moreover, will know that the “exclusive” – in effect, dictatorial – powers that the DSA confers on the European Commission include the power to designate the “very large” online platforms that are susceptible to incurring the massive DSA fines of up to 6% of global turnover. PayPal will easily satisfy the “very large” size criterion of having at least 45 million users in the EU, but it is obviously not a content platform.

Nonetheless, this appears not to be so obvious to the European Commission. For the Commission press release on the call for signatories treats it precisely…as a content platform! Thus, the press release refers to “providers of e-payment services, e-commerce platforms, crowd-funding/donation systems, which may be used to spread disinformation.” Huh?

In the meanwhile, on September 1, the EU has opened a specially-dedicated office or “embassy” in San Francisco to conduct what it itself describes as “digital diplomacy” with US tech firms. The “ambassador,” Commission official Gerard de Graaf, is reportedly one of the drafters of the DSA. Perhaps he will be able to explain the intricacies of the DSA to PayPal – or even already has. PayPal headquarters are, after all, just a stone’s throw away in Palo Alto.

In any case, PayPal has been put on notice, and, with it, so too have dissident websites that depend on user support for their survival. Ignore the EU at your peril.

Author

  • Robert Kogon is a pen name for a widely-published financial journalist, a translator, and researcher working in Europe. Follow him at Twitter here. He writes at edv1694.substack.com.

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Brownstone Institute

Deborah Birx Gets Her Close-Up

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From the Brownstone Institute

BY Bill RiceBILL RICE 

According to Birx, she intentionally buried the more draconian elements of the lockdowns in text at the end of long documents, theorizing (correctly apparently) that most reporters or readers would just “skim” the document and would not focus on how extreme and unprecedented these mandates actually were.

Most Americans will remember Dr. Deborah Birx as the “scarf lady” who served on the White House’s Covid Response Team beginning in February 2020.

According to a recently-released (but little-seen) 24-minute mini-documentary, it was Birx – even more so than Anthony Fauci – who was responsible for government “guidelines,” almost all of which proved to be unnecessary and disastrous for the country.

According to the documentary, the guidelines ran counter to President Trump’s initial comments on Covid, but ultimately “toppled the White House (and Trump) without a shot being fired.”

The mini-documentary (“It Wasn’t Fauci: How the Deep State Really Played Trump”) was produced by Good Kid Productions. Not surprisingly, the scathing 24-minute video has received relatively few views on YouTube (only 46,500 since it was published 40 days ago on Feb. 26).

I learned of the documentary from a colleague at Brownstone Institute, who added his opinion that “Birx (is) far more culpable than Fauci in the Covid disaster…Well worth the time to see the damage an utter non-scientist, CIA-connected, bureaucrat can do to make sure things are maximally bad.”

I agree; the significant role played by Birx in the catastrophic national response to Covid has not received nearly enough attention.

Brought in from out of Nowhere…

From the video presentation, viewers learn that Birx was added to the White House’s Coronavirus Task Force as its coordinator in latter February 2020.

Birx worked closely with Task Force chairman Vice President Mike Pence, a man one suspects will not be treated well by future historians.

According to the documentary, “career bureaucrats” like Birx somehow seized control of the executive branch of government and were able to issue orders to mayors and governors which effectively “shut down the country.”

These bureaucrats were often incompetent in their prior jobs as was Birx, who’d previously served as a scientist (ha!) in the Army before leading the government’s effort to “fight AIDS in Africa” (via the PEPFAR Program).

When Birx was installed as coordinator of Covid Response she simply rehashed her own playbook for fighting AIDS in Africa, say the filmmakers.

The three tenets of this response were:

  1. “Treat every case of this virus as a killer.”
  2. “Focus on children,” who, the public was told, were being infected and hospitalized in large numbers and were a main conduit for spreading the virus.
  3. “Get to zero cases as soon as possible.” (The “Zero Covid” goal).

The documentary primarily uses quotes from Scott Atlas, the White House Task Force’s one skeptic, to show that all three tenets were false.

Argued Atlas: Covid was not a killer – or a genuine mortality risk – to “99.95 percent” of the population. Children had virtually zero risk of death or hospitalization from Covid. And there was no way to get to “zero cases.”

Atlas Didn’t Shrug, but was Ignored…

Furthermore, the documentary convincingly illustrates how the views of Atlas were ignored and how, at some point, his ability to speak to the press was curtailed or eliminated.

For example, when Atlas organized a meeting for President Trump with Covid-response skeptics (including the authors of the Great Barrington Declaration) this meeting was schedule to last only five minutes.

The documentary also presents a report from the inspector general of the Department of State that was highly critical of Birx’s management style with the African “AIDS relief” program she headed.

Among other claims, the report said she was “dictatorial” in her dealings with subordinates and often “issued threats” to those who disagreed with her approach.

Shockingly, this highly-critical report was published just a month before she was appointed medical coordinator of the Coronavirus Task Force.

A particularly distressing sound bite from Birx lets viewers hear her opinion on how controversial “guidance” might be implemented with little pushback.

According to Birx, she intentionally buried the more draconian elements of the lockdowns in text at the end of long documents, theorizing (correctly apparently) that most reporters or readers would just “skim” the document and would not focus on how extreme and unprecedented these mandates actually were.

The documentary points out that Birx’s prescriptions and those of President Trump were often in complete conflict.

Birx, according to the documentary, once pointed this out to Vice President Pence, who told her to keep doing what she believed.

Indeed, the Vice President gave Birx full use of Air Force 2 so she could more easily travel across the country, spreading her lockdown message to governors, mayors, and other influencers.

Several Covid skeptic writers, including Jeffrey Tucker of Brownstone Institute, have noted that President Trump himself went from an opponent of draconian lockdowns to an avid supporter of these responses in a period of just one or two days (the pivotal change happened on or around March 10th, 2020, according to Tucker).

Whoever or whatever caused this change in position, it does not seem to be a coincidence that this about-face happened shortly after Birx – a former military officer – was named to an important position on the Task Force.

(Personally, I don’t give Anthony Fauci a pass as I’ve always figured he’s a “dark master” at manipulating members of the science/medical/government complex to achieve his own desired results.)

This documentary highlights the crucial role played by Deborah Birx and, more generally, how unknown bureaucrats can make decisions that turn the world upside-down.

That is, most Americans probably think presidents are in charge, but, often, they’re really not. These real rulers of society, one suspects, would include members of the so-called Deep State, who have no doubt installed sycophants like Fauci and Birx in positions of power.

I definitely recommend this 24-minute video.

A Sample of Reader Comments…

I also enjoyed the Reader Comments that followed this video. The first comment is from my Brownstone colleague who brought this documentary to my attention:

“… As I said, things can change over the period of 20 years but in the case of Birx/Fauci, I do not believe so. I have never seen people entrenched in the bureaucracy change.”

Other comments from the people who have viewed the mini-documentary on YouTube:

“Pence needs to be held accountable.”

“What does Debbie’s bank account look like?”

“(The) final assessment of President Trump at the 23:30 mark is, while painful, accurate. He got rolled.”

“This is very hard to find on YouTube. You can literally search the title and it doesn’t come up.”

“Excellent summary, hope this goes viral. Lots of lessons to learn for future generations.”

“Eye opening. Great reporting.”

Post from One Month Ago…

“37 likes after 3 years of the most controversial and divisive action in recent history. How can this be?”

“Oh never mind. YouTube hid it from the public for years.”

“Probably hasn’t been taken down yet for that reason, relatively low views.”

“Thanks for this! Sounds like everyone below President Trump was on a power trip and I didn’t think it was possible to despise Pence more than I already do.”

“…the backing of CDC, legacy media, WHO and government schools, business folding in fear are ALL responsible. Accountability for every person and agency is paramount!”

“Should be noted that her work on AIDS in Africa was just as useless and damaging.”

“First, any mature, adult woman who speaks with that much vocal fry should be immediately suspect. And the glee with which she recounts her role at undermining POTUS is remarkable and repulsive. This woman should NEVER be allowed to operate the levers of power again.”

Republished from the author’s Substack

Author

  • Bill Rice

    Bill Rice, Jr. is a freelance journalist in Troy, Alabama.

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Brownstone Institute

Justices’ Grave Error in Murthy v. Missouri

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From the Brownstone Institute

BY Aaron KheriatyAARON KHERIATY 

Along with my co-plaintiffs, I was at the Supreme Court last week for oral arguments in our Murthy v. Missouri case, in which we are challenging the federal government’s alleged censorship on social media. The Supreme Court will likely rule in June whether to uphold, modify, or strike down the Fifth Circuit Court of Appeals’ injunction against five federal agencies, in what, the district court judge wrote, “arguably involves the most massive attack against free speech in United States’ history.”

At the hearing, Justice Samuel Alito pointed out that emails between the White House and Facebook “showed constant pestering of Facebook.” He went on to comment, “I cannot imagine federal officials taking this approach to the print media…It’s treating these platforms like subordinates.” He then asked the government’s attorney, “Would you treat the New York Times or the Wall Street Journal this way? Do you think the print media considers themselves ‘partners’ with government? I can’t imagine the federal government doing that to them.”

The government’s attorney had to admit, “The anger is unusual” — referring to White House official Rob Flaherty literally cursing at a Facebook executive and berating him for not taking action quickly enough to comply with the government’s censorship demands.

Justice Brett Kavanaugh followed up, asking, “On the anger point, do you think federal government officials regularly call up journalists and berate them?” It’s worth recalling that Kavanaugh worked as a White House attorney before he was appointed to the court, as did Justices John Roberts and Elena Kagan. No doubt there were times they dialed a journalist or editor to try to convince them to change a story, clarify a factual assertion, or even hold or quash the publication of a piece. Kavanaugh admitted, “It’s not unusual for the government to claim national security or wartime necessity to suppress a story.”

Perhaps colorful language is sometimes used in these conversations, as Kavanaugh himself hinted. Kagan concurred: “Like Justice Kavanaugh, I have had some experience encouraging the press to suppress its own speech…This happens literally thousands of times a day in the federal government.” With a wink to the other former executive branch attorneys on the bench, Roberts quipped, “I have no experience coercing anyone,” which generated a rare chuckle from the bench and audience.

This analogy to government interactions with print media, however, does not hold in the case of the government’s relationship with social mediaThere are several crucial differences that profoundly change the power dynamic of those interactions in ways directly relevant to our case. These differences facilitate, in Alito’s words, the government treating the platforms like subordinates in ways that would be impossible with print media.

Behind the Scenes

First, when a government official contacts a newspaper, he is talking directly to the journalist or editor — the person whose speech he is trying to alter or curtail. The writer or editor has the freedom to say, “I see your point, so I’ll hold my story for one week to allow the CIA time to get their spies out of Afghanistan.” But the speaker also has the freedom to say, “Nice try, but I’m not persuaded I got the facts wrong on this, so I’m running the story.” The publisher here has the power, and there is little the government can do to threaten that power.

By contrast, with requests or demands for social media censorship, the government was never talking with the person whose speech was censored, but with a third party operating entirely behind the scenes. As my co-plaintiff, the eminent epidemiologist Dr. Martin Kulldorff, quipped, “I would have been happy to get a call from a government official and hear about why I should take down a post or change my views on the scientific evidence.”

Power Dynamic

Additionally, there is little the government can do to destroy the business model and cripple the New York Times or Wall Street Journal, and the journalists and editors know this. If the government pushes too hard, it will also be front page news the next day: “Government Trying to Bully The Post to Censor Our Breaking Story,” with the lede, “Naturally, we told them to go pound sand.”

But the power dynamic is entirely different with Facebook, Google, and X (formerly Twitter): The government does have a sword of Damocles to hang over the head of noncompliant social media companies if they refuse to censor — in fact, several swords, including the threat to remove Section 230 liability protections, which Facebook founder Mark Zuckerberg has accurately called an “existential threat” to their business, or threats to break up their monopolies. As the record in our lawsuit shows, the government explicitly made just such threats, even publicly on several occasions, in direct connection to their censorship demands.

Furthermore, unlike the major tech companies, newspapers or magazines do not have massive government contracts that might disappear if they refuse to comply. When the FBI or Department of Homeland Security calls Facebook or X with censorship demands, the corporate executives know that a weaponized agency has the power to launch frivolous but onerous investigations at any time. It thus becomes virtually impossible for social media companies to tell the government to take a hike — indeed, they may have a fiduciary duty to shareholders not to incur serious risks by resisting government pressure.

The text of the First Amendment doesn’t say the government shall not “prevent” or “forbid” free speech; it says the government shall not “abridge” free speech — i.e., shall not do anything to lesson a citizen’s ability to speak or diminish one’s potential reach. A sensible and clear injunction would simply state, “Government shall not request that social media companies remove or suppress legal speech.”

But if the justices want to distinguish between persuasion and coercion in the injunction, they need to appreciate that social media companies operate in a very different relationship with government than traditional print media. These asymmetrical power dynamics create a relationship ripe for unconstitutional government coercion.

Republished from The Federalist

Author

  • Aaron Kheriaty

    Aaron Kheriaty, Senior Brownstone Institute Counselor, is a Scholar at the Ethics and Public Policy Center, DC. He is a former Professor of Psychiatry at the University of California at Irvine School of Medicine, where he was the director of Medical Ethics.

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