Elon Musk's X Corp filed a federal lawsuit Tuesday against New York state, challenging the constitutionality of legislation requiring social media platforms to disclose content moderation practices for hate speech and extremism.
What Happened: The lawsuit targets the Stop Hiding Hate Act, which X claims violates First Amendment protections by forcing disclosure of "highly sensitive and controversial speech" policies, reported Reuters. The Manhattan federal court filing argues the law subjects platforms to potential lawsuits and fines up to $15,000 per violation daily.
"Deciding what content is acceptable on social media platforms engenders considerable debate among reasonable people about where to draw the correct proverbial line," X stated in court documents. "This is not a role that the government may play."
The law, authored by state Senator Brad Hoylman-Sigal and Assemblymember Grace Lee with Anti-Defamation League support, was signed by Governor Kathy Hochul in December. It requires platforms to report progress on eliminating hate speech, disinformation, harassment, and foreign political interference, according to the report.
Why It Matters: X's legal challenge follows similar content moderation disputes globally. The platform faces ongoing tensions with Brazil over account restrictions and recently settled with California over nearly identical disclosure requirements in February.
Musk, who acquired Twitter for $44 billion in October 2022 and rebranded it as X, eliminated many content moderation policies while positioning himself as a "free speech absolutist." Tesla Inc. (NASDAQ: TSLA) stock has faced pressure repeatedly in the past amid concerns over Musk's X-related activities.
The complaint references legislative sponsors' criticism of X's "disturbing record" on content moderation that "threatens the foundations of our democracy."
X based its constitutional challenge on a 2023 federal appeals court decision that partially blocked California's similar law over free speech concerns. The legislators expressed confidence that their law would withstand judicial scrutiny, stating Musk's resistance demonstrates the legislation's necessity.