In a recent legal battle, Elon Musk’s social media platform, X, formerly Twitter, faced defeat in its attempt to thwart California’s content moderation law. The law mandates social media giants to publicly disclose their content moderation practices, posing a considerable compliance burden on companies with substantial annual revenue.
Despite X’s legal efforts, U.S. District Judge William Shubb ruled against the platform’s claims that the law infringed upon its free speech rights. Shubb emphasized that while the reporting requirement imposes a significant burden, it is justified within the framework of the First Amendment.
X, which has seen a decline in monthly U.S. ad revenue since Musk assumed control in October 2022, now faces the challenge of adapting to the stringent terms of service mandated by the law. The court highlighted the importance of these terms as a crucial factor for users.
Notably, X’s woes extend beyond the U.S., with the European Union launching an investigation into potential breaches of obligations under the Digital Services Act (DSA). The probe, triggered by posts related to Hamas’ attacks on Israel, marks a significant development in the EU’s scrutiny of social media platforms.
Despite facing criticism and a decline in ad revenue, X affirms its commitment to complying with the DSA and is actively cooperating with the regulatory process. As the legal battle continues, the social media giant awaits further proceedings in the case, scheduled for a conference on Feb. 26.
This setback adds to the challenges X has been grappling with, both in the U.S. and abroad, raising questions about the platform’s ability to navigate the evolving landscape of content moderation and regulatory compliance.
