How Will Trump’s Second Term Impact Social Media Companies?

How Will Trump’s Second Term Impact Social Media Companies?

2 minutes

Table of contents

With Donald Trump elected for a second term, questions arise about the potential changes in social media regulation and their effects on leading social platforms. Throughout his campaign, Trump frequently voiced his stance on major platforms. Here’s a look at what might be in store for the biggest players in the sector.

Meta

Trump’s relationship with Meta has always been complex. On one hand, he actively used Facebook to promote his campaigns, but at the same time, he accused the platform of censorship. During the campaign, Trump warned Meta’s founder, Mark Zuckerberg, of the consequences of interfering with the election, even threatening imprisonment. At the same time, Trump supports the development of American innovations, especially in artificial intelligence (AI). By planning to revoke Biden’s executive order regulating AI, Trump could create more favorable conditions for Meta’s expansion in this field.

This could positively impact Meta, despite personal differences between Zuckerberg and Trump. However, it further underscores Meta’s need to continue avoiding conflict-driven content and political topics to evade intensified scrutiny and maintain a positive image.

X (formerly Twitter)

The X platform, owned by Elon Musk, is expected to be the biggest beneficiary of Trump’s presidency. Musk supported Trump’s campaign, using X to spread messages and bolster his image. Trump praised Musk, calling him a “super genius” and a “new star of the Republican Party.”

During Trump’s second term, X may gain more attention from advertisers and user support, which could help the platform recover lost ad revenue and solidify its market position. However, Musk’s primary interest lies in influencing public opinion, and he may use X as a tool for this purpose.

TikTok

Back in 2020, Trump sought to ban TikTok, but now he has pledged to keep the app in the U.S., despite Biden signing a law for its sale. Trump could use an executive order to block the law, which would support the platform’s growth. However, TikTok still faces numerous regulatory challenges that could present long-term difficulties.

Snapchat

Trump has criticized Snapchat’s CEO, Evan Spiegel, multiple times, although his campaign still used ads on the platform in 2024. A reduction in regulatory pressure could offer Snapchat some advantages, but most of Snap’s hardware is manufactured in China, which may conflict with Trump’s America-focused production plans.

LinkedIn

While LinkedIn was not directly mentioned in the campaign, Trump’s plans to revoke AI regulations may positively affect its parent company, Microsoft, which is heavily invested in the field. This could enable LinkedIn to integrate AI further into its products and processes. However, Trump’s previous conflicts with Microsoft over political censorship issues may affect these initiatives in the future.

Our conclusions

Trump’s second term could bring significant changes for social media companies. It is expected that the field of artificial intelligence will gain more freedom due to Trump’s promises to reduce government regulation of technology. This could facilitate the growth of companies like Meta and LinkedIn, giving them greater opportunities for innovation and expansion.

For X, led by Elon Musk, Trump’s second term is likely to serve as an important stimulus, as Musk actively supported Trump during the campaign. This platform could gain increased attention from both users and advertisers, which could significantly strengthen its financial stability and influence on public opinion.

Meanwhile, TikTok and Snapchat remain under the threat of potential restrictions, though Trump promised to keep TikTok in the U.S. However, due to complex legal issues and the influence of external factors, these platforms may face challenges.

Overall, the main challenge for social media will be their ability to quickly adapt to potential regulatory changes and new political priorities.

This article available in Ukrainian.

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