Elon Musk’s company, X, has initiated legal action against New York in an effort to prevent the state from compelling social media platforms to disclose how they manage and monitor problematic posts. This regulatory measure, signed into law by Democratic Governor Kathy Hochul late last year, is set to become active in the coming months. X argues that the law infringes upon free speech rights and clashes with a federal statute established in 1996, which permits internet platforms to moderate content as they see fit.
In the lawsuit, X claims that New York is overstepping by mandating “politically charged disclosures” and influencing the editorial process of content moderation. Filed in a federal court situated in Manhattan, the suit attacks the state’s attempt to induce public contention regarding content moderation, aiming to pressure social media platforms, like X, into suppressing content that the government disapproves of, content that falls under constitutional protection.
New York’s Attorney General, Letitia James, declared through a statement that her office is examining the complaint and stands ready to defend the constitutionality of the state’s laws. The law mandates that social media companies issue biannual reports detailing their definitions of hate speech, extremist or racist content, disinformation, and other specified terms. This requirement also extends to documenting their moderation practices and providing data on flagged content, actions taken, and the distribution and visibility of such material.
Sponsors of the legislation, Sen. Brad Hoylman-Sigal and Assembly Member Grace Lee, both affiliated with the Democratic Party, argue that the law will foster transparency within social media companies and enhance accountability. Although the law affects a wide range of social media platforms, X finds itself at the center of growing scrutiny in recent years. In a letter penned in 2024 directed at an X lobbyist, the legislators criticized Musk and the company for possessing a concerning track record, which they believe threatens democratic foundations.
This correspondence was written prior to Musk temporarily collaborating as an adviser during Republican President Donald Trump’s tenure. Since the time Musk acquired Twitter in 2022, he has extensively modified content moderation, arguing for free speech. He disbanded the platform’s Trust and Safety council and withdrew from implementing content moderation and hate speech guidelines. He has revived the accounts of conspiracy theorists and promoted user engagement with incentives and partnerships.
Several external entities have reported an increase in hate speech and harassment on the platform following these changes. X also confronted a lawsuit from a research body that analyzed online hate speech, although this was dismissed last March.
The New York legislation mirrors a similar law enacted in California, which also prompted legal action from X. Previously, a panel of federal appellate judges partially blocked the California law on free speech grounds. Subsequently, the state reached a settlement, agreeing to desist from enforcing the content-moderation reporting requirements.