X Battles New York Over Social Media Content Rules

Elon Musk‘s social media platform, X, is suing New York in a bid to halt a new state law. The legislation mandates that social media companies report on how they manage potentially problematic posts, a regulatory approach the company already fought in California.

Legal Challenge Emerges

X filed the lawsuit on Tuesday, challenging the New York law which was signed late last year by Democratic Governor Kathy Hochul. The company insists the measure violates free speech and a 1996 federal law that allows internet platforms to moderate content as they choose. X, headquartered in Bastrop, Texas, argues New York is inappropriately inserting itself into the editorial process of content moderation through these required disclosures.

The lawsuit claims New York is attempting to create public controversy around content moderation to pressure social media companies to censor certain constitutionally protected content on X that the state disapproves of. New York Attorney General Letitia James‘s office stated they are reviewing the complaint and will defend the law’s constitutionality.

Law’s Requirements

The law requires social media firms to issue semi-annual reports. These reports must detail how companies define hate speech, racist or extremist content, and disinformation. Additionally, the reports need to include data on moderation practices, like flagged posts, actions taken, and the reach of the flagged material.

“The state is impermissibly trying to generate public controversy about content moderation in a way that will pressure social media companies, such as X Corp., to restrict, limit, disfavor or censor certain constitutionally protected content on X that the state dislikes,”

—X Corp, Lawsuit

Sponsors, Democratic Senators Brad Hoylman-Sigal and Assembly Member Grace Lee, believe the law will improve transparency and accountability on social media. In 2023, the Pew Research Center found that 41% of Americans say they have personally experienced online harassment, showcasing the importance of content moderation policies (Pew Research).

Historical Context and Controversy

The law affects social media companies broadly. However, X has faced intense scrutiny. In a 2024 letter, the sponsors mentioned that X and Musk have a “disturbing record” which threatens democracy’s foundations. Musk, since taking over the former Twitter in 2022, has relaxed content moderation rules and restored accounts of those with controversial views. This has led to a rise in hate speech and harassment, according to outside groups.

The New York legislation mirrors a similar law in California. X also sued California over its law. A federal appellate court blocked parts of the California law last fall on free speech grounds. The state subsequently settled, agreeing not to enforce the reporting requirements.