California Agrees to Dilute Social Media Law in Settlement with X Corp

California has settled a lawsuit with Elon Musk's X Corp., resulting in the state dropping key provisions of a social media transparency law, Assembly Bill 587. The law, enacted in 2022, required platforms to disclose their definitions and handling of hate speech, misinformation, and other harmful content. The settlement, reached in federal court, found that certain reporting mandates violated the First Amendment, although the law itself remains partially intact. California Attorney General Rob Bonta expressed disappointment but acknowledged that some provisions of the law still apply. The decision reflects ongoing tensions between state regulations and social media companies' content moderation practices, as critics like Musk claim such laws interfere with free speech. Following a Ninth Circuit ruling that paused the law, the settlement further limits the state's oversight of social media platforms' content moderation policies.