On Thursday, Elon Musk’s X was unable to prevent a California state law that mandates social media companies to publicly reveal their content moderation practices.
X, previously known as Twitter, filed a lawsuit against California in September in an effort to overturn a content moderation law. The company argued that the law infringed upon its right to free speech as protected by the First Amendment of the U.S. Constitution and California’s state constitution.
Social media companies are obligated by law to release semiannual reports detailing their content moderation practices. These reports must include data on the number of objectionable posts and the actions taken to address them.
In an eight-page decision, U.S. District Judge William Shubb dismissed the social media company’s request.
“Although the reporting requirement may impose a significant compliance burden on social media companies, it seems that the requirement is reasonable and not excessively burdensome considering the principles outlined in the First Amendment,” Shubb stated.
X did not promptly reply to a request for a comment. Shubb has scheduled a meeting with the lawyers involved in the case on February 26th for a scheduling conference.
Shubb emphasized the importance of “terms of service” requirements in accordance with the law, stating that they can greatly influence users’ decisions.
X has faced significant criticism for its content moderation rules, leading to numerous companies suspending advertising on the platform. Ever since Elon Musk assumed control of X in October 2022, the monthly U.S. ad revenue has consistently experienced a significant decline of at least 55% year-over-year, as reported by third-party data provided to Reuters in October.
Europe is also closely examining the social media platform. In a recent development, the European Union has initiated an investigation into X for potential violations of its obligations. This investigation is particularly focused on posts made in the aftermath of Hamas’ attacks on Israel. Notably, this is the first probe conducted under the Digital Services Act (DSA).
After the Oct. 7 attacks by Hamas on Israel, X and other social media companies were inundated with fabricated images and deceptive information. X reaffirmed its dedication to adhering to the DSA and expressed its willingness to collaborate with the regulatory process.
