Big Companies Versus Freedom of Speech

Introduction

United States legislators rarely reach agreements across both major political parties. On October 18th of this year, such an agreement occurred when bipartisan lawmakers called out two companies, Apple and Activision Blizzard, for censoring the pro-democracy movement in Hong Kong. These companies have come under fire for their methods of preserving business interests in China. While many people are banding together to protect democracy worldwide, these companies’ actions have sparked fear for the future of free speech.

Big Companies Versus Freedom of Speech

The Hong Kong pro-democracy movement is receiving international support. With protests growing larger each day, volunteers have created apps that track the movements of Chinese law enforcement. One of the most popular of these apps, HKMap.live, was recently pulled from Apple’s app store. This came just one day after Chinese state media berated Apple for approving the app and warned the tech giant of weakened business ties.

US lawmakers viewed Apple’s decision as undemocratic. On October 18th, these lawmakers wrote a joint letter to Apple CEO Tim Cook, in which they said that Apple’s decision “to accommodate the Chinese government” was “deeply concerning.” The letter addressed the issue of Apple being pressured by the Chinese government to pull HKMap.live because it allowed “rioters in Hong Kong to go on violent acts.” However, HKMap’s developers said there is no evidence suggesting that their app had been used to target police and undermine public safety (Bonifacic, 2019).

HKMap.live is certainly not the only app Apple has censored in the wake of the Hong Kong protests. Citing data from GreatFire, the lawmakers said that Apple had censored more than 2,200 apps in China. Among them were the Virtual Private Network apps used to get around China’s Great Firewall, and apps for oppressed groups such as Tibetans and Uyghurs. Apple may be strengthening its business ties with China by censoring these apps, but by putting business interests before First Amendment rights, global free speech has become jeopardized. “We urge you in the strongest terms to reverse course, to demonstrate that Apple puts values above market access, and to stand with the brave men and women fighting for basic rights and dignity in Hong Kong,” the lawmakers wrote. “When a repressive government refuses to evolve or, indeed, when it doubles down, cooperation can become complicity.”

Lawmakers' Response

Seven Senate and House members signed the letter: Sen. Ron Wyden (D-OR), Sen. Tom Cotton (R-AR), Sen. Marco Rubio (R-FL), Sen. Ted Cruz (R-TX), Rep. Alexandria Ocasio-Cortez (D-NY), Rep. Mike Gallagher (R-WI), and Rep. Tom Malinowski (D-NJ). Five of these members – Wyden, Rubio, Ocasio-Cortez, Gallagher, and Malinowski -- went on to write a second letter, this one addressed to Activision Blizzard.

Activision Blizzard is a California-based video game company, and one of the largest in the world in terms of revenue and market capitalization. The company hosts some of the most popular games today, including Warcraft, Overwatch, and Hearthstone. Recently, a professional Hearthstone player named Chung Ng Wai, AKA “Blitzchung,” received a one-year suspension from Blizzard Entertainment -- a subsidiary of Activision Blizzard – for shouting “Stand with Hong Kong” during a post-tournament broadcast. The company also revoked Ng’s $10,000 prize money and fired two hosts who expressed support for the Hong Kong protests. Public backlash was swift; the company lightened Ng’s suspension to six months and returned his prize money. However, Activision Blizzard also suspended three more Hearthstone players for boycotting the punishment of Ng.

The lawmakers’ second letter, directed at Activision Blizzard CEO Bobby Kotick, expressed concern over Ng’s suspension “in light of the Chinese government’s growing appetite for pressuring American business to help stifle free speech.” They wrote, “Because your company is such a pillar of the gaming industry, your disappointing decision could have a chilling effect on gamers who seek to use their platform to promote human rights and basic freedoms. Indeed, many gamers around the world have taken notice of your company’s actions, understandably calling for boycotts of Activision Blizzard gaming sites… As China amplifies its campaign of intimidation, you and your company must decide whether to look beyond the bottom line and promote American values – like freedom of speech and thought – or to give in to Beijing’s demands in order to preserve market access. We urge you in the strongest terms to reconsider your decision with respect to Mr. Chung. You have the opportunity to reverse course. We urge you to take it.”

Business Interests vs. Human Rights

In both the cases of Apple and Activision Blizzard, lawmakers urged the companies to “reverse course.” Indeed, for free speech to spread on a global scale, massive companies like Apple and Activision Blizzard must sever some business ties. Of course, this is much easier said than done.

China is an extremely important market for Apple. It is no secret that Apple has had a rough past year in China; the company booked $13 billion in revenue from China during last year’s December quarter, which was down 27% from the year prior. Apple also experienced challenges with China through their legal battles with Qualcomm (Feiner, 2019). Viewing Apple from a business perspective, it makes sense why the company would censor apps in order to maintain a foothold in the Chinese market. For an entity whose motive is to maximize profits, censoring politically-charged apps may seem like a reasonable compromise.

China is also an extremely important market for Activision Blizzard. Over 25% of Activision Blizzard’s business in 2018 – $570 million – came from the Asia-Pacific region, with many of its games localized for China through a partnership with NetEase. Additionally, Chinese gaming giant Tencent holds a 4.9% stake in the company. The Chinese market is just as important to Activision Blizzard as it is to Apple. So, how do these companies go about preserving Chinese business ties, as well as free speech?

Conclusion

The truth is, when it comes to matters of business vs. human rights, companies cannot always have their cake and eat it. In order for free speech to spread on a global scale, companies must draw a line with governments once said governments attempt to silence its own people. While this decision will inevitably lead to decreased revenue, standing up for free speech will not only boost the companies’ reputations, but also help millions of people worldwide. These letters may be just the push these companies need to steer themselves onto a more democratic route.

References

• Bonifacic, I. (2019). Apple pulls HKmap.live app used in Hong Kong protests. Engadget. Retrieved from https://www.engadget.com/2019/10/10/apple-hkmap-live-hong-kong/
• Feiner, L. (2019). Apple’s revenue in China falls 27% as CEO Cook blames weaker demand, trade war. CNBC. Retrieved from https://www.cnbc.com/2019/01/02/apple-revenue-in-china-falls-27percent.html