In a legal setback for Elon Musk’s X Corp., a federal judge in Sacramento dismissed the company’s attempt to block a California law regulating toxic social media posts. The law, requiring companies to disclose content-moderation policies, was upheld, despite X Corp.’s argument of violating free-speech rights.

The ruling follows Musk’s controversial endorsement of antisemitic posts on his platform, leading to major advertisers like Sony, Apple, and CBS pausing or stopping spending. California Governor Gavin Newsom signed the law, AB 587, in 2022 to enhance transparency on hate speech, disinformation, harassment, and extremism policies.

X Corp., formerly Twitter, claimed the law aims to pressure platforms to eliminate constitutionally protected content, calling it problematic. The ruling comes amid the US Supreme Court’s consideration of similar laws in Florida and Texas, testing social media companies’ free-speech rights.

Musk’s acquisition of Twitter for $44 billion in 2022 aimed for a censorship-free platform, but subsequent policy changes led to a rise in harmful content. Musk hired CEO Linda Yaccarino to repair industry partnerships and attract advertisers.

Blaming watchdog groups for a decline in US advertising revenue, Musk accused them of spreading false accusations about harmful content on X. Judge William Shubb dismissed X Corp.’s argument, stating the reporting requirement, though burdensome, aligns with First Amendment law.

As X Corp. navigates legal challenges and strives to maintain a censorship-free stance, the broader debate on social media content moderation continues, with implications for free-speech rights and platform responsibility. The court’s decision sets a precedent in the evolving landscape of online content regulation.

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