A US federal court on Monday dismissed a lawsuit filed by X Corp. by Elon Musk against the non-profit organization Center for Countering Digital Hate (CCDH). The group had accused Musk of allowing a rise in hate speech on his social media platform and was subsequently sued by him.
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In the lawsuit filed last year, X Corp. argues that the center violated the site's terms of service by improperly compiling public tweets. The subsequent reports about the increase in hate speech cost X millions of US dollars as advertisers left.
On Monday, U.S. District Judge for the Northern District of California Charles Breyer dismissed the lawsuit. “X Corp brought this case to punish CCDH for CCDH publications criticizing X Corp – and perhaps also to deter others who would make such criticism,” Breyer wrote in his order (AZ 3:23-cv-03836). It continues: “It is impossible to read the complaint and not conclude that X Corp is far more concerned about CCDH's statements than its data collection practices.”
X Corp. proof is not required
X had claimed that the Center for Countering Digital Hate had “scoured” the X website for data, in violation of its terms of service. However, Judge Breyer found that X had failed to “claim losses based on technological damages.” That is, the company has not demonstrated how the scraping itself resulted in financial losses for X.
X had demanded millions in damages and argued that the non-profit organization's reports had led to the exodus of advertising customers and the loss of advertising revenue. However, the judge agreed with CCDH's argument and stated that X could not claim damages for the independent actions of third parties based on CCDH's reports. X Corp. announced in a statement that it would appeal the court's decision.
The Center to Combat Digital Hate is a nonprofit organization with offices in the United States and the United Kingdom. It regularly publishes reports about hate speech and misinformation on social media such as X, TikTok and Facebook. The organization has published several reports noting an increase in hate speech, such as anti-LGBTQ speech, or fake news about climate change on X. Posts that glorify National Socialism, deny the Holocaust or incite violence against Jews, Muslims and Palestinians have also not been removed. Musk created a “safe space for racists,” according to the CCDH.
A billionaire’s “hypocritical harassment campaign.”
Imran Ahmed, the center's founder and executive director, said the lawsuit was a “hypocritical harassment campaign” by a billionaire who talked about protecting free speech but then used his wealth to silence his critics, according to the US news agency AP. The lawsuit highlights the need for federal law requiring tech companies to release more information about their activities so the public can understand how these powerful platforms shape society, Ahmed said.
Since Musk took over Twitter in 2022, the social media platform's advertising business has struggled. Advertising revenue in the USA collapsed. US media suspects that in addition to the rise in hate speech, advertisers may have been spooked by Musk's changes to the social network, including the removal of rules about what can and cannot be said on the service, as well as the increase in advertising for online gambling and Marijuana products.
The court order in the X Corp case. v Center for Countering Digital Hate
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