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US House Panel Subpoenas Alphabet Over Content Moderation Communications

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The U.S. House Judiciary Committee subpoenaed Alphabet (GOOGL.O) on Thursday, demanding the tech giant provide communications with the Biden administration regarding content moderation policies. This subpoena, led by House Judiciary Committee Chairman Jim Jordan, a Republican, also includes requests for similar communications with external entities, such as companies and groups outside of the government.

The subpoena focuses on communications about the moderation or potential banning of content related to various conservative topics, including discussions about President Donald Trump, Tesla CEO Elon Musk, COVID-19, and other conservative issues. This move follows heightened scrutiny of Big Tech by Republicans, who argue that these platforms suppress conservative viewpoints through their moderation policies.

In the past, the Trump administration and members of Congress have criticized Big Tech for allegedly silencing conservative voices online. U.S. Federal Trade Commission Chairman Andrew Ferguson has warned that companies that coordinated moderation efforts or misled users about their policies might be violating the law.

Last year, under similar scrutiny, Meta Platforms disclosed that it had faced pressure from the Biden administration to censor content, leading the company to scale back its content moderation policies. However, Jordan’s letter to Alphabet noted that the company had not yet disavowed any attempts by the Biden administration to censor speech, unlike Meta.

In response, Google spokesperson Jose Castaneda affirmed that Alphabet would continue to demonstrate to the committee how it enforces policies independently, emphasizing its commitment to free expression.

YouTube Launches New $7.99 Subscription Plan to Compete with Streaming Giants

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On Wednesday, YouTube introduced a more affordable subscription plan, Premium Lite, priced at $7.99 per month. This new tier removes ads from most videos, except for music content, making it a more budget-friendly option for viewers who don’t primarily use the platform for music. YouTube’s move aims to better compete with streaming services like Netflix and Disney, offering a plan designed for users who rarely watch music videos or listen to music.

The new Premium Lite plan contrasts with YouTube’s existing $13.99 Premium plan, which is ad-free for both videos and music. Additionally, the $10.99 plan offers ad-free music videos but retains ads for other content, essentially reversing the focus of the new service.

YouTube has noticed a rising demand for more affordable options, particularly among users already subscribed to other music streaming services, such as Spotify, Apple Music, and Amazon Music. This demand has been most evident in the U.S. market, where competition for music streaming subscriptions is fierce.

John Harding, Vice President of Engineering at YouTube, noted that the focus of Premium Lite is to attract a larger pool of potential users who wouldn’t typically pay for YouTube’s higher-tier services. Jack Greenberg, YouTube Premium’s Product Director, added that the new plan targets users who don’t require music content but want an ad-free video experience.

The company had already tested Premium Lite in Australia, Germany, and Thailand, with positive early results showing an increase in first-time subscribers. In fact, more users have upgraded from Premium Lite to the full Premium plan than those downgrading.

YouTube also announced that it now has over 125 million paying subscribers, up from 100 million in January 2024. While advertising still makes up the majority of YouTube’s revenue—$36 billion in 2024—subscriptions are increasingly contributing to its growth. YouTube’s combined ad and subscription revenue surpassed $50 billion over the past year.

Google Pushes Back Against U.S. Government’s Antitrust Efforts

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Alphabet’s Google has urged the U.S. government to reconsider efforts to break up the tech giant, meeting with officials from President Donald Trump’s administration last week, according to a source familiar with the matter.

The U.S. Department of Justice (DOJ) is currently pursuing two antitrust lawsuits against Google, focusing on its dominance in online search and advertising technology. The agency has outlined potential remedies, including forcing Google to divest key assets such as the Chrome web browser and ending agreements that make it the default search engine on devices like Apple’s iPhone.

A Google spokesperson confirmed that the company regularly engages with regulators, including the DOJ, to discuss ongoing legal matters. “As we’ve publicly stated, we are concerned that the current proposals would harm the American economy and national security,” the spokesperson said.

The DOJ has not yet commented on the recent meeting. The trial to determine potential remedies in the search case is scheduled for April, with a final ruling expected by August.

President Trump’s administration is expected to take a less aggressive stance on antitrust enforcement compared to former President Joe Biden’s policies. Industry experts suggest that this could include a softened approach toward breaking up Google, a move that has been a key concern for the tech giant.