US Lawmakers Accuse X Chief Musk of Profiting from Anti-Israel Propaganda

Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)
Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)
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US Lawmakers Accuse X Chief Musk of Profiting from Anti-Israel Propaganda

Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)
Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)

A group of 27 US lawmakers, all Democrats, wrote to X owner Elon Musk on Tuesday to express concern the platform seemed to be profiting from premium accounts that glorified violence against Israelis.

In the letter to Musk and X chief executive Linda Yaccarino, the lawmakers noted reports from nonprofit organizations that showed people with X Premium accounts "glorifying barbaric acts of violence against Israelis."

The letter is the latest fight between Musk, who bought Twitter and renamed it X, and those who have advocated for better content moderation. X sued the watchdog group Media Matters on Monday, alleging it defamed the platform after it published a report that said ads for major brands had appeared next to posts touting Adolf Hitler and the Nazi party.

"These reports demonstrated that X is profiting from the spread of this gruesome and harmful propaganda through account subscription fees and ad revenue," the lawmakers wrote, adding that much of the offensive content remained live despite being flagged by researchers.

X did not immediately respond to a request for comment.

The lawmakers said X profited from the posts both from subscription fees as well as ads displayed in replies to both Premium and regular posts.

"X has financially benefited from the spread of demonstrably false and misleading content as well," the lawmakers wrote.

X's US ad revenue has declined at least 55% year-over-year each month since Musk's takeover. Advertisers have left the platform since Musk bought it for $44 billion in October 2022 because of some of Musk's controversial posts and layoffs of employees who worked to moderate content.

The lawmakers also noted that the United States had designated Hamas as a terrorist organization in 1997, which means that it was unlawful to knowingly provide material support or resources to the group.

"There is no ambiguity about whether violent videos generated by the group qualify under these policies. These are videos that carry official Hamas branding and iconography," the lawmakers wrote.



Apple’s China Market Share Shrinks as Huawei Surges, Data Shows 

A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
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Apple’s China Market Share Shrinks as Huawei Surges, Data Shows 

A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)

Apple's market share in China shrank by two percentage points in the second quarter of 2024, as the tech giant faced intensifying competition from rivals like Huawei, according to data from market research firm Canalys.

The decline underscores the difficulties the US tech giant faces in its third-largest market.

Huawei's smartphone shipments surged 41% year-on-year in the quarter, bolstered by the launch of its new Pura 70 series in April.

The Canalys data, while not providing specific shipment figures for Apple, showed that the company's market share in China dropped to 14% in the second quarter of 2024, a decrease from 16% in the same quarter of 2023.

As a result of this decline, Apple's ranking in the Chinese smartphone market fell from third to sixth place.

Overall, China's smartphone shipments rose by 10% in the quarter, Canalys said. Vivo was the top vendor with a share of 19%, followed by Oppo, Honor and Huawei with 16%, 15% and 15% respectively.

"Domestic manufacturers have demonstrated market leadership, occupying the top five positions in the mainland Chinese market for the first time in history," said Lucas Zhong, research analyst at Canalys.

"On the other hand, Apple faces growth pressure in the Chinese market and is actively focusing on optimizing channel management."

Huawei made a comeback to the high-end smartphone segment last August with the release of a device powered by a domestically-made chip, defying US sanctions that have cut off its access to the global chipset supply chain.

In an effort to boost sales, Apple has ramped up its discounting efforts this year to entice consumers. The US company launched an aggressive campaign in May, doubling the scale of an earlier promotion in February and offering price cuts of up to 2,300 yuan ($318.84) on select iPhone models.

Analysts expect Huawei's strong performance to continue throughout the year. Canadian research firm TechInsights projected earlier this year that Huawei's overall smartphone shipments in China will exceed 50 million units in 2024, with the Pura 70 series accounting for 10 million of those shipments.

That would make Huawei the No. 1 seller with a 19% market share, up from 12% in 2023, TechInsights has said.