Elon Musk’s X Corp challenges New York’s hate speech disclosure law in court

Elon Musk’s social media platform X (formerly Twitter) has filed a lawsuit against the state of New York, arguing that a newly enacted law requiring platforms to disclose their handling of hate speech and disinformation infringes on constitutional rights.

Filed on Tuesday in a Manhattan federal court, the suit targets the “Stop Hiding Hate Act,” which mandates that social media companies publicly detail their content moderation practices around hate speech, extremism, foreign political interference, and other harmful content. X contends that this law violates the First Amendment and New York’s state constitution by effectively forcing companies to publish information on speech the state might deem offensive — or face substantial fines.

According to the complaint, X argues that decisions about what constitutes acceptable content are inherently subjective and complex — and not for the government to dictate. “This is not a role that the government may play,” the company stated, calling the law an overreach into editorial discretion.

The legislation, sponsored by Democratic state Senator Brad Hoylman-Sigal and Assemblymember Grace Lee, was signed into law in December by Governor Kathy Hochul. The lawmakers have previously criticized X and Musk’s approach to moderation, describing it as a “disturbing record” that threatens democratic norms. They argue that Musk’s aversion to content regulation makes transparency laws like this one all the more critical.

Free speech vs public accountability

X’s legal pushback is part of a broader national debate on how far governments can go in pushing for transparency from tech companies without infringing on free speech protections. The company pointed out that New York’s law closely mirrors a 2023 California statute, which was partially blocked by a federal appeals court over similar First Amendment concerns. California ultimately agreed in a February 2024 settlement not to enforce the contested portions of its law against X.

The New York law carries steep penalties — with potential fines reaching $15,000 per violation per day for non-compliance. It was developed in collaboration with the Anti-Defamation League and seeks to compel companies to report both their moderation policies and progress in removing harmful content.

Attorney General Letitia James, named as the defendant in the suit, has yet to comment on the case.

Senator Hoylman-Sigal and Assemblymember Lee, however, issued a statement expressing confidence in the law’s constitutionality. “The fact that Elon Musk would go to these lengths to avoid disclosing straightforward information to New Yorkers only underscores the need for this legislation,” they said.

The case, X Corp v. James, is being heard in the U.S. District Court for the Southern District of New York.

Summary

X Corp has sued the state of New York over a new law requiring social media platforms to disclose how they monitor hate speech and related content. The company claims the law violates First Amendment protections, echoing similar concerns raised in California. The case highlights growing tensions between tech platform autonomy and state efforts to regulate online speech.

Frequently Asked Questions (FAQs)

1. What is the Stop Hiding Hate Act?

The Stop Hiding Hate Act is a New York state law that requires social media platforms to publicly disclose their policies and actions related to moderating hate speech, disinformation, extremism, and harassment. It aims to increase transparency and accountability in online content moderation.

2. Why is Elon Musk’s X Corp challenging this law?

X Corp argues that the law violates the First Amendment by compelling platforms to disclose information about controversial or offensive speech, thereby infringing on their editorial discretion and free speech rights. The company fears it may be penalized for failing to report content the government deems objectionable.

3. What penalties could social media platforms face under this law?

Companies found non-compliant with the Stop Hiding Hate Act could face civil fines of up to $15,000 per violation per day, making it potentially very costly for platforms that resist disclosure.

4. Has a similar law been challenged elsewhere?

Yes. A nearly identical law in California was partially blocked by a federal appeals court in 2023 over First Amendment concerns. In early 2024, California settled with X Corp and agreed not to enforce the law’s disclosure rules.

5. Who are the sponsors of the New York law?

The law was authored by Senator Brad Hoylman-Sigal and Assembly member Grace Lee, both Democrats, with assistance from the Anti-Defamation League. It was signed into law by Governor Kathy Hochul in December 2023.

6. What is the broader significance of this legal battle?

This case highlights a growing tension between government efforts to combat online hate and misinformation and the constitutional limits on regulating speech. The outcome could set a national precedent for how much transparency states can demand from tech companies.

7. Who is named in the lawsuit filed by X Corp?

New York Attorney General Letitia James is the defendant in the case, as her office is responsible for enforcing the state’s laws. She has not yet publicly commented on the lawsuit.