Elon Musk’s X Corp. Sues California AG Over Content Moderation Law

Elon Musk’s X Corp, the parent company of the platform previously known as Twitter, has filed a lawsuit against California’s Attorney General over the state’s new content moderation law. The law, known as AB 587, was signed by California Governor Gavin Newsom in September of the previous year. It mandates that social media companies must publish their terms of service online and submit semiannual reports to the state attorney general outlining their content moderation policies and practices. These reports must include details on automated content moderation systems, definitions of controversial content categories, and the number of flagged or removed content pieces in such categories.

Governor Newsom’s office promoted the bill as a means to enhance transparency among social networks. However, in a complaint filed in California’s Eastern District Court against California Attorney General Robert Bonta, X Corp alleged that the law violates the First Amendment and California’s constitution by potentially forcing the company to moderate politically charged user speech.

The company’s complaint states that the law “compels companies like X Corp. to engage in speech against their will, impermissibly interferes with the constitutionally-protected editorial judgments of companies such as X Corp., has both the purpose and likely effect of pressuring companies such as X Corp. to remove, demonetize, or deprioritize constitutionally-protected speech.” It also argues that the law could impose an “undue burden” on social media companies like Musk’s X Corp, which is based in California.

The Attorney General’s press office responded to the lawsuit, stating in an email to CNN, “While we have not yet been served with the complaint, we will review it and respond in court.”

Governor Newsom’s statement from last September highlighted the aim of the bill, saying, “California will not stand by as social media is weaponized to spread hate and disinformation that threaten our communities and foundational values as a country. Californians deserve to know how these platforms are impacting our public discourse, and this action brings much-needed transparency and accountability to the policies that shape the social media content we consume every day.”

This legal action follows Elon Musk’s recent escalation of rhetoric regarding what types of speech should be allowed on the platform. The company has experienced significant revenue challenges tied to concerns over content moderation and other issues. Under Musk’s leadership, the platform has made several policy changes, including ceasing enforcement of its Covid-19 misinformation policy and reinstating many previously banned users.

Recently, at least two brands paused their advertising spending on X after their ads appeared alongside an account promoting Nazism. X suspended the account after the issue was flagged, stating that ad impressions on the page were minimal.

Elon Musk also recently threatened to sue the Anti-Defamation League (ADL) for defamation, alleging that the organization’s statements about rising hate speech on the platform had negatively impacted X’s advertising revenue. The ADL has refrained from commenting on legal threats, but its CEO, Jonathan Greenblatt, spoke out against the #BanTheADL campaign on X.

In the lawsuit filed on Friday, X Corp argued that requiring social media companies to report their moderation practices could pressure platforms into “limiting or censoring constitutionally-protected content that the State finds objectionable.” The company also claimed that the law might compel social platforms “to take public positions on controversial and politically charged issues,” forcing them to tailor those positions to avoid public scrutiny.

The lawsuit seeks a jury trial to determine the constitutionality and legal validity of California’s content moderation law.