Mark Zuckerberg-Led Meta Set To Face 'Truth' At Senate Hearing Over China Operations And Communist Party Censorship Efforts

The Senate Judiciary Subcommittee is set to hold a hearing next week to examine Mark Zuckerberg-led Meta Platforms, Inc.’s (NASDAQ:META) alleged efforts to establish a presence in China and its ties to censorship tools.

What Happened: The hearing, titled “A Time for Truth: Oversight of Meta's Foreign Relations and Representations to the United States Congress,” will scrutinize Meta's past actions in China.

Senators, including Josh Hawley (R-Mo.) and Ron Johnson (R-Wis.), have raised concerns over Meta's internal efforts to engage with the Chinese government, as detailed in a book by former Facebook executive Sarah Wynn-Williams.

See Also: Tesla And Other US Robotics Giants Demand Federal Strategy To Compete With China’s $138 Billion Push — Warn America Will Lose The Race Without It

The lawmakers have requested internal documents from Meta regarding the company’s business dealings in China since 2014, including content suppressed at the behest of Chinese officials.

The letter sent to Zuckerberg on Tuesday also cited reports that Meta may have explored partnering with Chinese companies to create censorship tools and share user data with the Chinese Communist Party (CCP).

Meta spokesperson Andy Stone has stated that the company had abandoned its plans to enter China, reported Politico.

 “We do not operate our services in China today,” Stone said, adding that Facebook’s previous efforts to connect with China were publicly discussed but ultimately halted in 2019.

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Why It Matters: Meta’s efforts to suppress the tell-all book by Wynn-Williams inadvertently boosted its popularity.

Last month, Cathie Wood’s Ark Invest sold a significant amount of Meta stock, reflecting investor concerns amid privacy issues and global expansion efforts. This sale occurred as Meta celebrated a milestone with its AI model, Llama, reaching 1 billion downloads.

In February, Zuckerberg visited the White House to discuss advancing American tech leadership abroad. Meta CEO donated $1 million to Donald Trump’s inauguration fund, following previous tensions over alleged censorship of right-wing voices.

Price Action: Meta’s stock is down 2.55% year-to-date, but over the past 12 months, it has climbed 17.40%, according to Benzinga Pro data.

Meanwhile, Benzinga Edge Stock Rankings assigns Meta a 74.72% growth rating. Want to see how it compares to other companies? Click here for the full analysis.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.