How Joe Biden’s FTC Seemingly Targetted Elon Musk and Why It Matters
Lina Khan ‘Weaponized’ FTC Against Musk: Report
Since Elon Musk’s acquisition of Twitter (now X), the FTC, under Chair Lina Khan, has seemingly stepped up regulatory actions against the platform, garnering huge controversy. Now, a House Judiciary Committee report has also added to growing concerns about regulatory overreach and intentions behind the FTC’s approach, specifically alleging Khan 'weaponized' the FTC to go after the billionaire, his social media platform, and his right to free speech.
An Urgent Consent Decree Vote
FTC consent decrees, which can last ten years or more, set compliance obligations for companies. However, as per the report, Khan pushed for an immediate vote to finalize Twitter’s consent decree just three days after he acquired the platform, stating that the 'urgency' was due to his purchase in an email to a lawyer. Although the FTC had been pondering over Twitter’s consent decree before Musk’s ownership, its enforcement was delayed and only seemed to get back on track until his acquisition, the House Judiciary Committee report noted.
Over 350 Document Demands
Furthermore, within months of Musk’s takeover, the FTC reportedly issued more than 350 document demands to Twitter, a volume criticized as excessive and often beyond the decree’s original scope. According to the House Judiciary Committee report, the FTC's extensive actions were seen as a 'tool for the FTC to harass Musk' and reflect a "willingness to stifle speech that runs contrary to the prevailing narrative."
Commissioner Objections
At the same time, two Republican FTC commissioners opposed the accelerated vote, questioning the lack of a full review process. Commissioner Noah Philips’ advisor asked, “What’s the urgency?” and argued that the swift vote disregarded procedural fairness. Moreover, the unusual process raised concerns among other FTC officials about transparency and neutrality in decision-making.
Claims of Free Speech Suppression
The House Judiciary Committee report asserted that the FTC’s demands aimed to curb free speech on the platform, particularly with regard to Musk’s approach. It states that the “Biden-Harris Administration has… demonstrated a willingness to stifle speech that runs contrary to the prevailing narrative,” referencing a perceived bias against free speech advocates like Musk.
Journalist Data Requests and Privacy Practices
The FTC requested details about journalists Musk collaborated with for his 'Twitter Files' project, which the House Judiciary report described as an 'inherently politically motivated attempt to stifle Twitter' amid Musk’s focus on free speech. This led the FTC to expand its privacy investigation, aiming to assess “what types of access Musk is granting outside journalists.” Concluding in early 2024, the probe determined that Twitter’s privacy measures met regulatory standards.
X CEO’s Condemnation of Bias
Linda Yaccarino, CEO of X, condemned the FTC’s approach as biased, urging the agency to clarify its accusations against Musk’s Twitter. "The FTC Commissioners clearly targeted our company for political reasons," Yaccarino wrote on X. She also described the situation as deeply troubling, expressing that they had worked in good faith with the FTC for years and had expected the same in return while emphasizing an urgent need for answers.
Impact on Big Tech
The ongoing scrutiny of Musk and X has spurred discussions around regulatory reform. With lawmakers questioning the FTC’s motives, the House Judiciary Committee’s report suggests that the 'weaponization of regulatory authority' against Musk may set a concerning precedent for Big Tech oversight.
