Seminar: Carlo Schwarz, Bocconi University

Abstract:

Social media companies are under scrutiny for the prevalence of hateful content on their platforms, but there is little empirical evidence on the consequences of moderating such content. We study the online and offline effects of content moderation on social media using the introduction of Germany’s "Network Enforcement Act" (NetzDG), which fines social media platforms for failing to remove hateful posts, as a natural experiment. We show that the NetzDG reshaped social media discourse: posts became less hateful, refugee-related content became less inflammatory, and the use of moderated platforms increased. Notably, the law did not significantly reduce the overall activity of toxic users or alter conversation topics. Offline, the NetzDG caused a 1% reduction in anti-refugee hate crimes for every standard deviation in far-right social media usage. Using a synthetic control approach, we document similar effects on overall hate crimes in Germany. In terms of mechanisms, we provide evidence that the NetzDG decreased hate crimes by reducing collective action rather than changing attitudes toward refugees.