So I do actually believe Mastercard when they say this, but holding them accountable anyway is probably for the best. They're likely the single group with the most influence over the regulators.
So I do actually believe Mastercard when they say this, but holding them accountable anyway is probably for the best. They're likely the single group with the most influence over the regulators.
For background,
https://en.wikipedia.org/wiki/Brown_v._Entertainment_Merchan... ("Brown v. Entertainment Merchants Association" (2011) ("ruling that video games were protected speech under the First Amendment as other forms of media"))
I don't think there's any government involvement necessary here - Mastercard has some censorship apparatus (which they claim to be necessary for their brand's reputation), and they used it (apparently through pressure from an Australian group) towards video games.
This is really bad but I don't think it makes sense to believe a government was ever involved here. Of course, there should be laws put in place to regulate mastercard into a common infrastructure. They should not be able to deny processing a legal payment because of nebulous "brand reputation" reason.
In general? Absolutely - search 'Operation Chokepoint'.
There's a great summary in the middle of this (very long) article under that header: https://www.bitsaboutmoney.com/archive/debanking-and-debunki...
Mastercard could simply refuse service for those games in particular instead of demanding (through proxies) that the games be banned from Steam. There's a clear antitrust violation.
This has been happening for years already, this is not an accident caused by a crazy lady from Australia complaining to the right people. She simply took advantage of Mastercard already engaging in censorship and challenged them and their payment processors to take on an even broader interpretation of Mastercard's obscenity rules.
Which is a pretty messed up situation.
Also, the FCC does not directly set standards and instead responds to complaints from the communities in which the broadcast is available. So it’s conceivable that in an environment where nobody cared, you could do this at any time of day.
You can hand wave around well they are a monopoly or some related argument but the government does not see it that way. Visa and Mastercard for decades have censored adult sites on their network. At the end of the day I suspect they would be happy to take the fees but they are the ones underwriting the risk and there have been cases over the year in the US at least that challenge how extreme you can go with Adult material. Even today there are certain categories that are much harder to get setup for processing.
Edit: to be ultra clear, I would love more competition in this space but at the same time there is no argument around free speech here.
Constitutional rights are also civil rights - businesses may not violate them nilly-willy in this specific manner which causes damages to people.
Now, I happen to think that, pace Dershowitz, adult content does not fall within the scope of free speech. The entire purpose of free speech is to allow the truth to be to expressed. Free speech takes an attitude of pragmatic permissiveness toward certain varieties of what are objectively bad speech as the price for that to happen. It's a choice that was made in American political history, but even here, the bounds of what is legally permitted under free speech have not remained fixed for various reasons.
Adult content is nowhere in the vicinity of this notion of free speech, and certainly not its moral purposes. There is no right to produce or to view adult content. There is no right to anything that is objectively unethical, and both the production and consumption of such content is unethical. Gov'ts can choose to take a permissive stance toward such activity for prudential reasons (for example, historically, while prostitution was categorically condemned on moral grounds, gov'ts took a permissive attitude in some respects, because they felt that banning it would cause still greater problems), but they have the authority to criminalize it.
So, given that it isn't a free speech issue, I have no problem, in a free speech context, with private companies banning such content from their platforms or from being the subject of transactions passing through their systems.
Severing either of these two links would be enough though.
1. Government pressure only triggers a First Amendment issue when it’s actual, not hypothetical. Courts require clear state action or coercion.
2. Mastercard acting on its own isn’t censorship in the legal sense, it’s a private company making content-moderation decisions. You may not like that power, but it’s not unconstitutional.
If you want structural reforms, like regulating payment networks as common carriers, that’s a policy question, not a current free speech violation.
Imagine that the government instituted a private organization that had the power to cripple any business, with no recourse, and had control over it. The first amendment does not literally prohibit this, yet this would have clearly been a violation of the first amendment in spirit.
It's like if a tier 1 ISP only peered with networks that peer with networks that censor XYZ. Allowing for these kind of agreements leads to censorship and is why net neutrality is important from the government.
This typically comes up when someone thinks they're getting better transit service from a tier-1 than a tier-2. They're not. A tier-2 ISP can have better routes, since a tier-1 will refuse to deliver your traffic anywhere that requires them to pay money. Some places are just unreachable from tier-1 ISPs.
Famously, for over a decade Cogent has refused to receive packets from Hurricane Electric without payment because idk profits, and Hurricane Electric has refused to pay them because it's a tier-1-ish, so you just can't talk to Cogent customers if you're an HE customer and vice versa. (I think HE eventually relented by paying a third-party to forward packets to specifically Cogent, even though they have tier-1 status to everywhere else)
But even in the context of the First Amendment, freedom of speech does not only apply to the government. For example, net neutrality laws prevent ISPs, which are generally private companies, from restricting Internet traffic on free speech grounds.
To the extent that it is legal for a payment processor to censor speech, the only reasonable conclusion is that the law is wrong and must be amended. Large corporations are much more similar to governments than they are to private so individuals, and should be treated as such.
Net neutrality was about common carriers (ISPs) due to their chokepoint role in internet access. Payment processors are not classified as common carriers and are not subject to those rules.
If you want laws changed to regulate them like utilities, that’s a policy argument, not a free speech violation under current law.