In a significant legal development, a federal judge has ruled against X owner Elon Musk’s attempt to avoid government oversight in an ongoing Federal Trade Commission (FTC) investigation of the social media giant. The judge’s decision means Musk may be compelled to cooperate with federal investigators probing X, formerly known as Twitter, over concerns about business decisions impacting user security and privacy.
- The ruling, issued by US Magistrate Judge Thomas Hixon, denies X’s attempt to invalidate a longstanding privacy settlement with the FTC, which is the foundation for the ongoing investigation.
- The judge clarified that the US District Court lacks the authority to overturn the FTC’s administrative order, making it clear that Musk and X must adhere to the privacy settlement.
- Musk’s potential deposition by the FTC as part of the investigation cannot be blocked, according to the ruling, potentially impacting a separate SEC investigation related to Musk’s Twitter purchase.
- The privacy settlement in question is crucial to the US government’s examination of X, with recent concerns arising in 2022 when Twitter paid $150 million to update the settlement, addressing allegations of user harm due to the misuse of personal information.
- The whistleblower disclosure by Peiter “Mudge” Zatko, Twitter’s former security chief, further fueled doubts about Twitter’s compliance, leading to the current FTC probe, which has intensified since Elon Musk’s takeover of the company.
- X has contested what it perceives as government overreach and harassment, while the FTC maintains its mission is to ensure X’s compliance with legal obligations.
This ruling sets the stage for increased scrutiny of X and Elon Musk, highlighting the continued regulatory challenges facing the social media giant.