X, once known as Twitter, faces a legal setback as a US judge dismisses the social media platform’s challenge regarding content moderation.
In a significant legal blow to Elon Musk’s X, previously recognized as Twitter, a California judge dismisses the tech giant’s bid to challenge a state law mandating transparency in social media content moderation.
This decision marks a pivotal juncture in the ongoing discourse on the interplay between free speech rights and the regulations governing digital platforms.
Significantly, X contested the law, asserting its infringement on constitutional principles. Nevertheless, U.S. District Judge William Shubb’s recent ruling supports the state’s authority to require disclosure from social media entities.
California Legislation Triumphs in Content Moderation Disagreement
Dealing a setback to Elon Musk’s X, Judge Shubb rejected the company’s legal approach, highlighting that although the reporting obligation poses a significant burden, it remains justified under the First Amendment.
The law stipulates that social media firms must disclose semiannual reports outlining their content moderation procedures, providing insights into objectionable posts and their resolutions, as reported by Reuters.
Challenges for Elon Musk’s X as Ad Revenue Declines and EU Scrutiny Intensifies
Since October 2022, X has come under increased scrutiny for its content moderation policies. The platform experienced a significant monthly decline, with U.S. ad revenue dropping at least 55% year-over-year each month.
Concurrently, a legal battle unfolds as the European Union (EU) investigates X under the Digital Services Act (DSA). This inquiry arises due to concerns about potential breaches related to posts following Hamas’ attacks on Israel.
Despite the hurdles, X remains steadfast in its commitment to DSA compliance and underscores its cooperation with the regulatory process. The court is slated to reconvene on February 26, playing a pivotal role in shaping the future framework of content moderation across social media platforms.
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