Let me disagree with one of your premises: the story wasn't "blocked." Yes, Social Media sites decided they didn't want to "advertise" the story -- but that only stopped the people who want to be "spoon fed" the news.
I learned about the story. Then again, I tend not to get my news from social media. I'm guessing you would have come across it, as well.
Yes, I came across it. And no, it was not blocked from people who want to go to the NY post or may use an aggregator that still included it.
But the difference in this case is that Facebook for instance, which drives a lot of news views from the "spoon feeding" crowd as you mention, is claiming not to be a publisher, but is operating under section 230 liability protections as a platform. So "advertising" as you call it, hosting other views, is what they are designed for, and why they receive such protections. I am not a big fan of changing section 230 protections because they have allowed for more voices without the platforms being sued out of existence. But the more they are perceived as limiting viewpoints, the more that becomes likely.
Courts have broadly interpreted their ability to edit content, ban users, etc. However, if they keep pushing lines that appear to penalize narratives in perceived political ways (not just the right, but at times the anti-war left, etc. as well), they are likely to see some of these protections reduced, or see some other action taken. If the NY Post puts out a poor article, it is their reputation that will be impacted. If Facebook decides it won't allow the article, it is Facebook's reputation that is called into question because they no longer appear to be acting as a platform, but as a publisher with editorial discretion. On the user level it hurts their reputation because you have an article you want to share, and they will not let you do it. It is perceived to be unfair, because they have allowed other stories that seem poorly sourced.
You can argue about the "elites" controlling the media -- that has been a valid concern, particularly as more and more of our "media" has started to be controlled by fewer people. At the same time, the rise of the Internet, particularly many of the various news sites and blogs have made getting out news in non-traditional ways more common. A small part of that is social media.
Agreed, I would say social media is increasingly part of that because platforms by design can take lesser voices to more people. This has been a good development.
I think the issue is, what responsibility do "Media" (in general, to include social media) have to ensure every story someone wants published to be heard? For example, YouTube has determined they will not promote people who claim we live on a Flat Earth -- is that wrong, with science clearly stating we live on a spherical Earth, or do you think they are justified in not allowing things that is considered to be false?
Another example, Fox News has been known not to report on stories that are negative toward Republicans (or MSNBC stories that are negative to Democrats). Is that their right, to not report, or do you feel they should be required to publish all stories. What about a story that is from an "unidentified source," do they have a requirement to report that the story is out there, or can they (particularly if they believe it is false) just ignore it until more facts are available?
You have just cited two very different entities. Fox news does exercise editorial discretion and decides not to report on things. And for this reason they do not enjoy section 230 protections. They publish their own material, and are responsible for it, and can be pursued for defamation, etc.
Youtube hosts material from many, many users, as a platform, and is not responsible for the content because of liability protection provided under section 230.
I think there are three issues here: First, what is moral -- and an argument can be made they should report all "reasonable" (where there is a reasonable chance it might be true) stories; giving both the pro (it is true) and con (it is false) information so that readers can make their own decision. At the same time, it can also be argued it is moral to refuse to print stories they believe are false.
I don't think a news organization has an imperative to cover every story, because there may not even be enough resources to do so. However, when there is a trend that they choose not to cover what will upset one side or the other of a political divide, that hurts their reputation. Some may want that type of news where everything agrees with them. But others want more fair coverage. But beyond just the market forces, there is recourse to the courts if they are truly defaming, etc.
Platforms, on the other hand, are hosting other people's ideas. They don't need to be deciding what one they think is true.
Second, there is the question of what is legal. Are sites (both news and social media) legally required to create or allow stories reported by every other news outlet, regardless of if they believe the story is true or not. I think we both know the answer here is no.
Under current law we agree that the answer is no. Section 230 grants some good faith moderating. The courts interpretation of that has been quite broad, perhaps broader than the statute, allowing them to essentially ban, remove, etc. at will. But the social media platforms are running the risk that lawmakers may revisit the situation if they are perceived as moderating for viewpoints rather than harmful content.
Last, there is where morality and law meet -- what should the legal obligations be? That is I think where you get different opinions and there is no easy answer. Yes, it is good to spread news as widely as possible. At the same time, it is good to restrict the spread of false information (though it can be argued if it should just not be posted or "fact checks" attached). But also, there is the idea that the owner of a site should determine how they want to handle it for their site -- and does your right to "post" outweigh their right to control what is posted on their site?
Again, you need to distinguish between publishers and platforms. Someone can control everything they want on their site. But the question is whether they will enjoy special liability protections carved out for those hosting other people's viewpoints.