29-12-2023 (SAN FRANCISCO) Elon Musk’s X failed to block a California law requiring social media companies to disclose content moderation details, after a federal judge dismissed the platform’s lawsuit on Thursday.
X, formerly known as Twitter, had sued to overturn the transparency regulation passed last year. But U.S. District Judge William Shubb rejected X’s argument that mandated moderation reports violated its free speech rights.
While acknowledging the law imposes a “substantial compliance burden,” Shubb stated the requirements appeared justified and not unduly burdensome under First Amendment precedents. The judge will meet with both sides later to schedule next steps.
California’s law compels platforms earning sizable revenue to publish biannual reports explaining their content rules and how they address problematic posts. X claimed this infringed its constitutional rights.
But Shubb emphasized terms of service shape user experiences and indicated providing transparency is in the public interest. His refusal to block the law deals a blow to X’s pushback against moderation disclosures.
The company faces growing scrutiny of its policies and practices since Musk’s takeover. X’s U.S. ad revenue has plunged as major advertisers paused campaigns over content concerns. European regulators this month also launched an investigation into X’s compliance with new digital rules.
While X pledged cooperation, the California defeat may foreshadow more legal conflicts surrounding its opaque and shifting content decisions under Musk. For now, the platform must ready its first mandated moderation report as users demand more accountability.
