Court rejects X’s bid to void FTC privacy settlement

In May 2022, just months before Elon Musk acquired Twitter (now X), the FTC fined the platform $150 million and imposed guidelines for protecting users’ personal data. The ruling came after the FTC found that Twitter violated a previous decree by inappropriately sharing user phone numbers and email addresses with advertisers.

After acquiring Twitter, Elon Musk went to court to overturn the decree, claiming the FTC targeted X and pressured a third-party assessor to find fault with its security practices. However, a federal judge rejected the motion, ruling that his court lacked the authority to block the FTC’s order. The judge also rejected Musk’s request to avoid a deposition as part of a separate investigation. X must continue to follow the privacy reporting standards imposed by the FTC.

The judge pointed out issues with X’s argument, noting the FTC had reason to increase scrutiny after Musk took over. The judge also ruled that Musk cannot avoid being deposed by the FTC.

Musk’s FTC problems began after his acquisition of X, when key executives on Twitter’s privacy and security teams departed. The FTC intensified its probe into Musk’s actions in March regarding the company’s handling of layoffs, X Premium subscriptions, the “Twitter Files,” and other issues.

Meanwhile, the platform remains in the news, as IBM said it would pull advertising on X after discovering its ads were being placed next to pro-Nazi content. Musk himself faced criticism after appearing to endorse an antisemitic post on the platform.