EU Warns Musk's X Spreading 'Illegal' Disinfo after Hamas Attack

An EU official said in a letter that concerns over X's moderation practices have heightened after the Hamas attack against Israel. JOEL SAGET / AFP
An EU official said in a letter that concerns over X's moderation practices have heightened after the Hamas attack against Israel. JOEL SAGET / AFP
TT
20

EU Warns Musk's X Spreading 'Illegal' Disinfo after Hamas Attack

An EU official said in a letter that concerns over X's moderation practices have heightened after the Hamas attack against Israel. JOEL SAGET / AFP
An EU official said in a letter that concerns over X's moderation practices have heightened after the Hamas attack against Israel. JOEL SAGET / AFP

The EU's digital chief Thierry Breton warned Elon Musk on Tuesday that his platform X, formerly Twitter, is spreading "illegal content and disinformation", in a letter seen by AFP.

The letter said concerns had heightened after the Hamas attack against Israel, and demanded Musk respond to the complaint within 24 hours and contact "relevant law enforcement authorities".

As the European Union's commissioner for industry and the digital economy, Breton is charged with regulating internet giants that trade within the bloc, and can launch legal action.

"Following the terrorist attacks carried out by Hamas against Israel, we have indications that your platform is being used to disseminate illegal content and disinformation in the EU," Breton wrote.

Breton reminded Musk that EU law sets tough rules on moderating content, "especially when it comes to violent and terrorist content that appears to circulate on your platform".

He asked that X respond to his complaint within 24 hours and also get in touch with Europol, the EU police coordinating agency.

"We will include your answer in our assessment file on your compliance with the DSA," Breton said, referring to the new EU Digital Services Act, which regulates online platforms.

"I remind you that following the opening of a potential investigation and a finding of non-compliance, penalties can be imposed," it said.

Musk, responding later on X to a user who had posted the letter, invited Breton to "please list the violations you allude to".

"Our policy is that everything is open source and transparent, an approach that I know the EU supports," Musk wrote.

Hate and violence

Brussels has previously complained that, among the large-scale internet platforms that fall under the DSA remit, Musk's Twitter now rebranded X spreads the biggest proportion of disinformation.

In August, when the new law came into effect, Musk replied to a post by Breton promising that the platform was "working hard" to comply, but there have been more warning signs.

While the rules were still voluntary, the firm pulled out of an oversight group, and Musk -- a self-styled "free speech absolutist" -- has been dismissive of criticism in his personal posts.

In September, the billionaire tech mogul boasted that he had cut half of its global team dedicated to monitoring and limiting disinformation and fraud around major elections.

Since Saturday's shock attack on Israeli communities by the Hamas group, web platforms have been swamped by posts containing fake or misrepresented reports and footage.

While the confirmed death toll in the renewed war has now passed 3,000 -- unconfirmed, exaggerated or false reports of atrocities have also proliferated.

Experts fear these moves have increased the risk of misinformation provoking real-world harm, amplifying hate and violence.



Existing ByteDance Investors Emerge as Front-Runners in TikTok Deal Talks

The icon for the TikTok video sharing app is seen on a smartphone in Marple Township, Pa., on Tuesday, Feb. 28, 2023. (AP)
The icon for the TikTok video sharing app is seen on a smartphone in Marple Township, Pa., on Tuesday, Feb. 28, 2023. (AP)
TT
20

Existing ByteDance Investors Emerge as Front-Runners in TikTok Deal Talks

The icon for the TikTok video sharing app is seen on a smartphone in Marple Township, Pa., on Tuesday, Feb. 28, 2023. (AP)
The icon for the TikTok video sharing app is seen on a smartphone in Marple Township, Pa., on Tuesday, Feb. 28, 2023. (AP)

White House-led talks on the future of TikTok are coalescing around a plan for the biggest non-Chinese investors in parent company ByteDance to up their stakes and acquire the short video app’s US operations, according to two sources familiar with the discussions.

The plan entails spinning off a US entity for TikTok and diluting Chinese ownership in the new business to below the 20 percent threshold required by US law, rescuing the app from a looming US ban, said the sources, who asked to be kept anonymous because they were not authorized to speak on record.

Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which are represented on ByteDance’s board, are leading discussions with the White House on the plan, the sources said.

Private equity firm KKR is also participating, one of the sources said.

The fate of the short video app used by nearly half of all Americans has been up in the air since a law took effect on Jan. 19 requiring ByteDance to either sell it or face a ban on national security grounds.

The law, passed last year with broad bipartisan support, reflects concern in Washington that TikTok’s ownership makes it beholden to the Chinese government and that Beijing could use the app to conduct influence operations against the United States. Free speech advocates have argued that the ban unlawfully threatens to restrict Americans from accessing foreign media in violation of the First Amendment of the US Constitution.

The company has said US officials have misstated its ties to China, arguing its content recommendation engine and user data are stored in the United States on cloud servers operated by Oracle while content moderation decisions that affect American users are also made in the US.

Under the plan proposed by existing investors, software giant Oracle would continue to house US user data and provide assurances that the data is not accessible from China, this source added.

Representatives for TikTok, ByteDance, Susquehanna, Oracle and the White House could not immediately be reached by Reuters for comment.

General Atlantic and KKR declined to comment.

The Financial Times reported earlier on Friday that US ByteDance investors were seeking to buy out Chinese investors in a proposed deal for a spun-off TikTok US business, naming investment firm Coatue as another existing investor involved in the talks.

Coatue did not immediately respond to a request for comment.

US President Donald Trump issued an executive order postponing enforcement of the law to April 5 shortly after taking office and said last month that he could further extend that deadline to give himself time to shepherd a deal.

According to legal filings from TikTok last year, global investors own about 58 percent of ByteDance, while the company’s Singapore-based Chinese founder Zhang Yiming owns another 21 percent and employees of different nationalities - including about 7,000 Americans - own the remaining 21 percent.

The White House has been involved to an unprecedented level in the closely watched deal talks, effectively playing the role of investment bank.

Trump initially supported the establishment of the ban during his first term but in recent months has pledged to "save TikTok" and keep the app alive in the US, crediting it with helping him win the 2024 presidential election.

The app went dark briefly, then came back online shortly after Trump’s inauguration, after he signed the executive order delaying enforcement of the ban by 75 days.

Trump said earlier this month that his administration was in touch with four different groups about a prospective TikTok deal, without identifying them.

Others vying to acquire the app include an investor group led by billionaire Frank McCourt and another involving Jimmy Donaldson, better known as the YouTube star Mr. Beast.

Reuters and others reported in January that Trump’s administration was working on a plan for TikTok that would involve tapping Oracle and some existing ByteDance investors to take control of the app’s operations.

Under the prospective deal, ByteDance would retain a stake in the company, but data collection and software updates would be overseen by Oracle, which already provides the foundation of TikTok’s infrastructure under an arrangement negotiated during Trump’s first term.