Judge Rules Government Oversight Inescapable for Elon Musk and X
A federal judge denies Elon Musk's plea to avoid government scrutiny, ruling against X's owner in an ongoing FTC investigation Public attention intensifies as the social media giant faces legal implications
On Thursday, a federal judge declined to mediate in the argument between Elon Musk, the owner of X, and the Federal Trade Commission (FTC) regarding an active agency investigation into the popular social media platform. This investigation has sparked significant public attention.
As a result of this ruling, Musk might be required to collaborate with federal investigators looking into X, previously known as Twitter, regarding potential business choices that regulators are concerned may have put user security or privacy at risk.
US Magistrate Judge Thomas Hixon has denied X's attempt to invalidate a longstanding privacy settlement with the FTC, which is the foundation for the ongoing investigation. Hixon has stated that the US District Court for the Northern District of California does not have the authority to grant X's request to overturn the administrative order issued by the independent agency.
Additionally, Hixon has ruled that he cannot prevent the FTC from seeking to depose Musk as part of their investigation, citing the same lack of authority. This decision may indirectly support the recent move by the US Securities and Exchange Commission to compel Musk's testimony in a separate investigation regarding his acquisition of Twitter.
The US government's investigation into X is closely tied to the privacy settlement. In 2022, concerns regarding the company's compliance with the 2011 order became significant. Twitter subsequently paid $150 million to update the settlement, addressing allegations that it misused user data by using it for advertising rather than account authentication.
Peiter "Mudge" Zatko, former security chief at Twitter, revealed new doubts about the company's compliance in the same year. This disclosure triggered the ongoing FTC probe. Since Musk assumed control of the company, the investigation has become more intense, leading X to object to what it perceives as government overreach and harassment by Musk. The FTC maintains that its mission is to ensure X's adherence to its legal obligations.
X didnt immediately respond to a request for comment on Thursdays order.
