New York Challenges X's Lawsuit Against Social Media Hate Speech Disclosure Law

After acquiring Twitter in 2022, Elon Musk eliminated the platform's content moderation policy entirely.

On Monday, New York state officials requested a judge to dismiss a lawsuit filed by Elon Musk's X that seeks to invalidate a state law mandating social media companies to disclose their methods for monitoring hate speech, extremism, harassment, foreign political interference, and disinformation.

New York Attorney General Letitia James argued that the Stop Hiding Hate Act helps consumers understand what to expect when using social media platforms, without restricting these platforms from expressing themselves or exercising judgment in content moderation decisions.

James maintained that requiring platforms to disclose their content moderation policies and enforcement activities "furthers the state's legitimate interests in empowering consumers to make informed choices about their use of social media."

X, formerly known as Twitter, has retained prominent First Amendment attorney Floyd Abrams among its legal representatives.

Abrams and other attorneys representing X did not immediately respond to requests for comment on James' filing in Manhattan federal court.

X REFERENCED A SIMILAR CALIFORNIA LAW THAT WAS BLOCKED

Musk's company argued that New York's law unconstitutionally exposed it to potential lawsuits and substantial fines unless it disclosed "highly sensitive and controversial speech" that the state deemed objectionable.

X also pointed to a September 2024 federal appeals court decision that partially blocked a California law on free speech grounds, which had served as a model for New York's legislation. California subsequently agreed not to enforce the disclosure requirements of its law.

James contended that the appeals court in the California case relied on an "erroneous premise" that social media companies' content moderation policies do not constitute commercial speech—a premise that the federal appeals court overseeing New York cases has rejected.

NEW YORK LAW IMPOSES DAILY FINES FOR VIOLATIONS

Signed into law last December by Governor Kathy Hochul, New York's legislation requires social media companies with annual revenue of at least $100 million to disclose their methods for eliminating hate on their platforms and to report their progress in doing so.

Civil penalties can amount to $15,000 per violation per day. The law was developed with assistance from the Anti-Defamation League.

After purchasing Twitter for $44 billion in 2022, Musk dismantled the company's content moderation policy.

The world's wealthiest individual and former close adviser to Republican President Donald Trump has described himself as a "free speech absolutist."

The case is identified as X Corp v James, U.S. District Court, Southern District of New York, No. 25-05068.