After the shocking ban of Donald Trump, the sitting Head of a State and President of America, from Twitter the micro-blogging site suffered a huge financial loss of $5 Billion in market value on Monday. Trump with more than 88 million followers was one of the most widely followed political leaders in the world in the social media. Banning of Trump’s account spurred a deep concern among investors over the future regulation of social networks.
But the move drew heavy criticism from some Republicans for stifling the President’s right to free speech, and European Union Commissioner Thierry Breton said the past week’s events likely heralded a new era of heavier official control.
Financial investors are worried that Twitter will be more exposed to any move towards regulation than its bigger rivals Facebook Inc or Google and YouTube-owner Alphabet .
Facebook also issued similar bans on Trump, but the fall in share prices was much heavier for Twitter with a loss of nearly 12% in Twitter in comparison to any of its peers.
With the permanent ban on Trump, who had a very high committed followers in the social media, the number of users of the social media platforms shrunk drastically. As Andrea Cicione, the head of strategy and at brokerage TS Lombard said, “Trump has a very high and loyal following and a lot of those eyeballs will go away if Trump is permanently restricted from posting,” said Andrea Cicione, head of strategy at brokerage TS Lombard.
The EU Commissioner Breton’s remark sums up the issue by saying that sea change in regulation may prove comparable to the global crackdown on terrorism after the attacks of Sept. 11, 2001. “The fact that a CEO can pull the plug on POTUS’s loudspeaker without any checks and balances is perplexing,” he wrote in a column for Politico.
“It is not only confirmation of the power of these platforms, but it also displays deep weaknesses in the way our society is organized in the digital space.”