Elon Musk under investigation by FTC over handling of Twitter Blue and Twitter Files

According to a report from two House of Representatives committees, the US Federal Trade Commission (FTC) has requested that Twitter provide internal communications related to owner Elon Musk and other detailed information and data about its business decisions as part of a probe into the social media company. 

The FTC has sent over a dozen letters to Twitter and its lawyers since Musk's takeover in October, with requests including the company's identification of all journalists who were granted access to company records, as well as information about the launch of the revamped Twitter Blue subscription service.

They have also requested that Musk testifies in connection with the probe. However, Musk has publicly criticised the investigation as "a shameful case of weaponization of a government agency for political purposes and suppression of the truth!"

The FTC has stated that "it should come as no surprise that career staff at the commission are conducting a rigorous investigation into Twitter's compliance with a consent order that came into effect long before Mr Musk purchased the company." 

One of the FTC's concerns was whether Twitter had the necessary resources to comply with the privacy consent decree, which was agreed upon in May 2022. The settlement required Twitter to improve its privacy practices and place responsibility on individuals who held certain positions. This concern was prompted by mass layoffs at the firm.

While some of the requests made by the FTC are relevant to its investigation regarding Twitter, the staff report by the House Judiciary Committee and Select Subcommittee on the Weaponization of the Federal Government suggests that some elements went too far. 

"There is no logical reason why the FTC, on the basis of user privacy, needs to analyze all of Twitter's personnel decisions. And there is no logical reason why the FTC needs every single internal Twitter communication about Elon Musk," the report said.

The agency has been asking Twitter if it has the resources required to comply with the privacy consent decree. Last year, a person familiar with the matter informed Reuters about the FTC's concerns regarding Twitter's staffing requirements to abide by the May 2022 settlement agreement, which also involved Twitter agreeing to pay a fine of $150 million to settle allegations of the misuse of private information, and improve its compliance practices.

(With Agency inputs)

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