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Facebook's Mark Zuckerberg and his wife, Priscilla Chan, donated more than $400 million to nonprofits that in turn distributed grants last year to state and local election officials.
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The move is the most severe punishment any social media company has taken in response to Trump, who used online platforms to encourage the violent mob that stormed the Capitol on Wednesday.
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After Congress failed to aid local election offices, a nonprofit backed by Mark Zuckerberg gave $350 million in crucial funds that helped the presidential election run surprisingly smoothly.
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The new ban is an expansion of the social network's rules against misinformation that could lead to imminent physical harm. It comes as governments prepare to roll out the first vaccinations.
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Facebook's Mark Zuckerberg, Twitter's Jack Dorsey and Google's Sundar Pichai go before the Senate Commerce Committee to defend Section 230, a law that protects them from lawsuits over users' posts.
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CEO Mark Zuckerberg, who previously considered such claims free speech, said his thinking has "evolved." Survivors had lobbied the social network to remove posts that deny the Holocaust.
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"We're increasingly seeing attempts to undermine the legitimacy of our elections from within our own borders," Facebook CEO Mark Zuckerberg says.
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A two-year investigation concludes the social network's leaders made decisions that were "significant setbacks for civil rights."
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Companies from Ford to Microsoft are part of a growing protest over how the social media giant handles hate speech and other harmful content.
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Facebook says the campaign advertisements violated the social network's ban on hate group symbols. The Anti-Defamation League's CEO said that "ignorance is no excuse for using Nazi-related symbols."