Judge Rules Elon Musk's X Must Comply with FTC Investigation
The ruling denies X's attempt to invalidate a privacy settlement, potentially boosting a similar SEC investigation.
- Federal Judge Thomas Hixon ruled that Elon Musk's social media company, X, formerly known as Twitter, cannot avoid government oversight and must cooperate with an ongoing Federal Trade Commission (FTC) investigation.
- The FTC is probing X over business decisions that may have jeopardized user security or privacy, following a whistleblower disclosure by Twitter's former security chief, Peiter “Mudge” Zatko.
- Judge Hixon denied X's attempt to invalidate a privacy settlement with the FTC, which forms the basis for the investigation, stating that the court lacks the authority to overturn the agency's administrative order.
- The ruling could indirectly boost a similar move by the US Securities and Exchange Commission to compel Musk's testimony in a separate investigation related to Musk’s purchase of Twitter.
- The FTC investigation has intensified since Musk's takeover of the company, with X protesting what it has called government overreach and harassment of Musk.