Elon Musk’s social media company X has filed a federal lawsuit challenging New York’s upcoming content transparency law, arguing it infringes on constitutional and federal protections around free speech and online moderation.
Filed in Manhattan on Tuesday, the lawsuit seeks to block enforcement of the measure, which was signed into law by Democratic Governor Kathy Hochul in late 2024 and is set to take effect later this year. X claims the statute forces platforms to publicly disclose politically sensitive decisions around content moderation, disclosures the company says are unconstitutional.
New York, the complaint asserts, is unlawfully attempting “to inject itself into the content-moderation editorial process” by mandating “politically charged disclosures” about platform decisions.
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“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,” the lawsuit states.
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At the time of filing, the office of New York Attorney General Letitia James had not issued a response.
The law mandates biannual reporting from social media companies detailing how they define and address hate speech, disinformation, racism, extremism, and other types of problematic content. Platforms must also disclose how many posts were flagged, what actions were taken, how widely the flagged content spread, and additional metrics about moderation practices.
Supporters of the measure, including Democratic lawmakers Sen. Brad Hoylman-Sigal and Assemblymember Grace Lee, say the law is designed to improve transparency and increase accountability among tech companies.
X’s lawsuit echoes its earlier legal challenge in California, where a similar law was temporarily blocked by a panel of federal appellate judges on First Amendment grounds. California ultimately agreed in a legal settlement not to enforce the moderation reporting requirements.
While the New York law applies broadly, X has found itself at the center of political scrutiny. In a 2024 letter to one of Musk’s lobbyists, the bill’s sponsors accused X and Musk of having a “disturbing record” that “threatens the foundations of our democracy.”
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The letter preceded a brief political alliance between Elon Musk and President Donald Trump, during which Musk served as an informal adviser and famously slashed costs at federal agencies while wielding a chainsaw during a government reform stunt. Though the two billionaires later clashed, their relationship has remained unpredictable.
Since acquiring Twitter in 2022 and rebranding it as X, Musk has significantly rolled back moderation policies in the name of free expression. He dismantled the platform’s Trust and Safety council and ended enforcement of hate speech guidelines, while restoring the accounts of previously banned conspiracy theorists. Musk also introduced monetization incentives for high-engagement users, deepening the company’s shift in content strategy.
These changes prompted watchdog groups to report a surge in hate speech and harassment. X later filed suit against one such research organization, though the case was dismissed in March 2025.
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