The investigation against Twitter Chief Elon Musk intensifies as the Federal Trade Commission seeks the internal communications and documents of the CEO regarding the previous and ongoing layoffs and several budget cuts.
(Photo : CHRIS DELMAS/AFP via Getty Images)
This photo illustration taken on December 18, 2022 in Los Angeles shows a phone displaying Elon Musk's Twitter page where he is conducting a survey about his future as the head of the company.
FTC's Demands
Since Elon Musk took over the company, Twitter's workforce continues to reduce as several job cuts were conducted over the past few months. Due to this, the Federal Trade Commission worries that the company might be incapable to protect users' privacy because of its budget cuts and ongoing layoffs.
The Wall Street Journal reported that FTC is now demanding Twitter to turn over internal communication like emails and documents related to Musk, including detailed information regarding the workforce reduction, as they cite concerns regarding staff reductions could compromise users' safety in the platform.
FTC is also asking the company for details regarding Twitter Blue and to identify all journalists granted access to company records with "Twitter Files." Lastly, the agency wants to depose Musk in connection with the probe. This inquiry is being led by FTC Chairperson and Democrat Lina Khan.
Spokesperson Douglas Farrar stated that the company aims to protect the privacy of the platform's consumers as that is what FTC is supposed to do. He added, "The agency is "conducting a rigorous investigation into Twitter's compliance with a consent order that came into effect long before Mr. Musk purchased the company."
Also Read: FTC Withdraws Antitrust Complaint Against Meta for Within Unlimited Acquisition
Criticisms Towards FTC
This effort came from the dozen letters sent by the FTC to Twitter since Musk's take over last year. The letters contain several concerns from the agency regarding the company's ability to comply with the $150 million agreement that the company made with the agency last May.
FTC said in November that the 2022 settlement gives the agency new tools to ensure compliance and they are prepared to utilize them in the right manner. The agency added that no CEO or company is above the law.
House Judiciary Committee has now obtained the letters and published excerpts of them last Tuesday during a staff report, which as per Gizmodo, is highly critical of FTC's investigation. The committee then accuses FTC of overstepping its bounds and claims regarding its demands.
"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 committee's recent report says.
The New York Times reported that Twitter is required to conduct regular scrutiny audits and keep FTC informed regarding how the company handles data in accordance with the consent decree it reached with the agency in 2011 and its recent expansion in 2022.
Related Article: Twitter Will Take the Fall-Musk's Lawyer Tells Staff that Individuals Won't be Liable to the FTC
