Elon Musk's X fails to block California's content moderation law
29 Dec 2023
In a setback for Elon Musk’s social media platform X, a U.S. District Judge dismissed its attempt to block California’s content moderation law. The law mandates social media companies with significant annual revenue to release semiannual reports detailing their content moderation practices.
Formerly known as Twitter, X sued California in September 2023, arguing that the law violated its free speech rights. However, Judge William Shubb ruled that while the reporting requirement imposed a compliance burden, it was justified within the context of First Amendment law.
The law necessitates detailed reports, including data on objectionable posts and how they were addressed. X, which has faced criticism for its content moderation, did not immediately respond to the court’s decision.
Judge Shubb, in an eight-page decision, emphasized the importance of the “terms of service” requirements of the law and noted their significance for users. A scheduling conference with the involved lawyers is scheduled for 26 February 2023.
X has encountered challenges under Musk’s leadership, experiencing a substantial decline in monthly U.S. ad revenue since October 2022. Third-party data indicated a year-over-year decrease of at least 55% each month.
The platform is also under investigation in Europe. The European Union is probing X over suspected breaches of obligations, particularly related to posts following Hamas’ attacks on Israel. This investigation marks the first under the Digital Services Act (DSA).
After the attacks on Israel by Hamas on 7 October 2023, X, along with other social media companies, faced an influx of fake images and misleading information. X affirmed its commitment to complying with the DSA and is cooperating with the regulatory process.
The case is titled X Corp vs. Bonta and is being heard in the U.S. District Court, Eastern District of California, under No. 2:23-cv-01939.