Elon Musk’s X has failed to block a California law requiring public disclosure of its content moderation practices.
X had filed a lawsuit in September, arguing the law violated its free speech rights under the US Constitution’s First Amendment and California’s state constitution.
On Thursday, December 28, the attempt to overturn the content moderation law faced a setback as the court ruled against the social media giant.
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The law mandates social media companies to disclose how they moderate specific content on their platforms transparently.
The company has not responded to requests for comments, and a scheduling conference with the lawyers involved is set for February 26.
Judge Shubb emphasized the importance of “terms of service” requirements within the law, considering them integral and potentially influential for users.
X has faced criticism over its content moderation policies, leading to several companies pausing advertising on the platform.
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X saw Massive drop in ad revenue
Since Elon Musk assumed control in October 2022, X’s monthly US ad revenue reportedly declined by at least 55 percent year-over-year each month.
Beyond legal challenges in the US, the company is also under European scrutiny.
The European Union is investigating the platform for suspected breaches of obligations, particularly related to posts following Hamas’ attacks on Israel.
This marks the EU’s first probe under the Digital Services Act (DSA).
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After the attacks on Israel by Hamas on October 7, X and other social media platforms dealt with a flood of fake images and misleading information.
Despite these challenges, X asserts its commitment to complying with the DSA and cooperates with the regulatory process.
The case, officially known as X Corp v Bonta, is ongoing in the US District Court for the Eastern District of California.
