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Elon Musk’s X sues New York State over law requiring social media sites disclose how they tackle hate speech

Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
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Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
Down Arrow Button Icon
June 18, 2025, 8:29 AM ET
Tesla and SpaceX CEO Elon Musk gestures as he speaks during the inaugural parade inside Capitol One Arena, in Washington, DC, on January 20, 2025.
X owner Elon Musk gestures during the inaugural parade inside Capitol One Arena, in Washington, DC, on January 20, 2025.Angela Weiss—AFP/Getty Images
  • The company formerly known as Twitter argued New York State’s Stop Hiding Hate Act is unconstitutional and would lose in court just like a similar legislative proposal mounted last year by California. New York legislators Brad Hoylman-Sigal and Grace Lee, who cosponsored the law, responded by saying X’s legal argument citing free speech protections used the First Amendment as a shield against accountability.

Elon Musk’s social media platform, X, is suing the State of New York in an attempt to block new legislation that would combat extremist speech.

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Under the Stop Hiding Hate Act that enters into force this week, digital content providers like the company formerly known as Twitter must disclose what efforts they are taking to police content on their respective platforms.

X argues the new law is a “carbon copy” of California’s Assembly Bill 587, which it already successfully challenged. Last year, three judges on the Ninth Circuit Court of Appeals issued an injunction, ruling portions of the law were unconstitutional under protected free speech rights.

“We are confident we will prevail in this case as well,” X wrote in a statement on its platform on Tuesday.

The worldwide rise in alternative media platforms like YouTube, Facebook, and many others has opened a door for extremist groups to destabilize society through targeted disinformation and misinformation designed to polarize and radicalize, supporters of the bill argue. 

However, critics of such measures have countered that this is a slippery slope that could either by design or default lead to the censorship of “wrongthink,” since even good-faith attempts to guard against violence may lead to regulatory overreach. Before Musk acquired Twitter in late 2022, users could be de-platformed for misgendering trans people.

Cosponsors label digital platforms ‘cesspools of hate speech’

“Social media companies, including X, are cesspools of hate speech consisting of anti-Semitism, racism, Islamophobia, and anti-LGBTQ bias,” said the two New York State legislators who cosponsored the bill, Brad Hoylman-Sigal and Grace Lee, in response to the lawsuit by X.

“We’re confident that the court will reject this attempt by X to use the First Amendment as a shield,” they added.

Today, @X filed a First Amendment lawsuit against a New York law, NY S895B. NY S895B is a new social media regulation that is a carbon copy of a California law, CA AB 587, that X successfully challenged in court under the First Amendment last year. The Ninth Circuit Court of…

— Global Government Affairs (@GlobalAffairs) June 17, 2025

Musk himself has played a role fomenting popular anger online, most notably in the U.K. last summer when he backed extremist leader Tommy Robinson’s call to arms that ended in race riots across the country. 

He later platformed the far-right nationalist AfD in Germany, falsely characterizing its policies as “identical” to those pursued by President Barack Obama. The party is under surveillance by the German equivalent of the FBI as a threat to the country’s postwar democratic order. 

As a result of his politics, Musk’s Tesla has seen a backlash in Europe, with sales cratering across the continent.

X argues New York State is simply trying to censor speech it doesn’t like

Since Musk took over Twitter in late 2022, he fired the content management team and outsourced policing to a select group of volunteers. They are free to choose at their discretion whether they fact-check statements from violent extremist groups or harangue drop-ship outlets in China.

When brands decided to follow the advice of the World Federation of Advertisers by departing the controversial platform, Musk sued the WFA. Its affiliated nonprofit, the Global Alliance for Responsible Media, shut its doors last August rather than pay the legal fees to defend itself in court. 

This approach has led to an ongoing legal fight with the European Union, after the latter said X violated content moderation guidelines under its Digital Services Act.

On Tuesday, Musk’s X said that New York’s Stop Hiding Hate Act was just another attempt by the government to “eliminate” certain speech it didn’t like. Cosponsors Hoylman-Sigal and Lee disagreed.

“The fact that Elon Musk would go to these lengths to avoid disclosing straightforward information to New Yorkers as required by our statute illustrates exactly why we need the Stop Hiding Hate Act,” they wrote.

Fortune Brainstorm AI returns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
About the Author
Christiaan Hetzner
By Christiaan HetznerSenior Reporter
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Christiaan Hetzner is a former writer for Fortune, where he covered Europe’s changing business landscape.

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