LONDON: Elon Musk was warned by a top European Union official to strengthen Twitter's measures to prevent hate speech and misinformation from spreading to users to avoid violating new EU rules that may result in large fines or even bans for tech giants.
Thierry Breton, the EU’s commissioner for digital policy, told the billionaire Tesla CEO that the social media platform will have to significantly increase efforts to comply with the new rules, known as the Digital Services Act, set to take effect next year.
U.S. Treasury Secretary Janet Yellen says an investigation into Elon Musk's purchase of electric car maker Tesla is not off the table.
They discussed Europe's new digital rulebook, which could set up a clash with Musk's vision for a more unfettered Twitter.
The rulebook will require tech companies to better police their platforms for material that promotes terrorism and child abuse.
Twitter will have to implement transparent user policies, significantly reinforce content moderation and protect freedom of speech, Breton's office says.
Breton said he was pleased to hear that Musk considers the EU rules "a sensible approach to implement on a worldwide basis".
"But let's also be clear that there is still huge work ahead," Musk said, according to a readout of the call released by Breton’s office.
The social media platform's new owner has indicated an interest in rolling back many of Twitter's previous rules meant to combat misinformation.
He has already reinstated some high-profile accounts that had violated Twitter's content rules.
Twitter will conduct a "stress test" at its HQ next year to help the platform comply with new EU rules.
Musk has laid off half the company's 7,500-person workforce, along with many contractors. Many others have resigned, including the head of trust and safety.
Violations could result in fines of up to 6% of annual global revenue or even a ban on operating in Europe's single market.
Elon Musk backtracks on claims that Apple threatened to remove Twitter from its app store.
Meanwhile, U.S. Treasury Secretary Janet Yellen walked back her statements about whether Musk’s purchase of Twitter warrants government review.
The Treasury secretary oversees the Committee on Foreign Investment in the United States, an interagency committee that investigates the national security risks from foreign investments in American firms.
“If there are such risks, it would be appropriate for the Treasury to have a look,” Yellen told The New York Times.
She declined to confirm whether CFIUS is currently investigating Musk’s Twitter purchase.
Billionaire Saudi Prince Alwaleed bin Talal is, through his investment company, Twitter ’s biggest shareholder after Musk.