EU warns Elon Musk that Twitter must stick to digital rules – business live | Business

Shares in Twitter have dipped in early trading, away from Elon Musk’s deal price of $54.20.

Twitter shares are down 1.8% at $50.74, having yesterday jumped over 5.5% as news broke that Twitter was accepting Musk’s offer.

As flagged earlier, the gap between the stock price and Musk’s offer may reflect some risk that the deal doesn’t complete.

Tech shares are under pressure generally, though, with the Nasdaq Composite down 2% as investors brace for results from Big Tech firms such as Apple, Microsoft, Amazon and Alphabet this week (including Alphabet after the market close).

Could Donald Trump, Katie Hopkins, David Icke and Alex Jones all be welcomed back to Twitter once Musk has taken control?

These are just some of the Twitter accounts that could be reinstated if the platform’s new owner-in-waiting, “free speech absolutist” Elon Musk, practices what he preaches, our global technology editor Dan Milmo writes.

All of those accounts have been permanently suspended from the platform for infractions that include, most notoriously, the former US president’s alleged support for the Capitol riot on 6 January last year. Their reinstatement now appears to be back in play given that the world’s richest man has agreed a $44bn (£35bn) takeover of the platform that banned them and has stated that “free speech is the bedrock of a functioning democracy”.

Trump said on Monday he has no intention of rejoining Twitter and is sticking with his rival TRUTH Social network, but Musk may give him an opportunity to recover his more than 88 million followers.

Speaking at a TED conference this month, Musk said he was was “very cautious with permanent bans” and would prefer a timeout system for account holders who break Twitter’s conduct guidelines. Given that Hopkins, a British rightwing commentator, was permanently suspended for breaching the site’s “hateful conduct” policy, her readmission would immediately lessen the stringency of rules in place to prevent threats against people on the basis of “race, ethnicity, national origin, caste, sexual orientation, gender, gender identity, religious affiliation, age, disability, or serious disease”.

Here’s the full story:

Brussels has warned Elon Musk that Twitter must comply with the EU’s new digital rules under his ownership.

EU’s commissioner for the internal market, Thierry Breton, says Elon Musk knows well that companies operating in Europe must stick to its rules, including the Digital Services Act which will force major technology firms to tackle illegal and harmful content online.

Failure to comply with the DSA, agreed last weekend, could mean a fine, or even a ban — a sign that we could see a global regulatory battle over Twitter’s future.

European Commission spokesperson Johannes Bahrke has echoed this point at a news briefing:

“Our Digital Services Act applies to all major platforms, to ensure their power over public debate is subject to democratically validated rules to better protect fundamental rights online,”

The DSA is expected to come into force in 2024, and includes:

• Banning advertising aimed at children or based on sensitive data such as religion, gender, race and political opinions.
• Allowing EU governments to request removal of illegal content, including material that promotes terrorism, child sexual abuse, hate speech and commercial scams.
• Forcing social media platforms to allow users to flag illegal content in an “easy and effective way” so that it can be swiftly removed.

A company failing to comply could be fined up to 6% of its global turnover, or be banned from operating in the EU for repeatedly breaching the rules. Twitter posted annual revenues of $5bn last year, meaning it could be fined around $300m.

Breton has also told the Financial Times that Elon Musk must follow rules on moderating illegal and harmful content online.

Breton said he wanted to offer a “reality check” to Musk’s plans for less stringent moderation, saying:

“We welcome everyone. We are open but on our conditions. At least we know what to tell him: ‘Elon, there are rules. You are welcome but these are our rules. It’s not your rules which will apply here.’”

Twitter co-founder Jack Dorsey has backed Elon Musk’s controversial $44bn (£34bn) takeover of the micro-blogging platform, describing the billionaire as “the singular solution I trust”.

The 45-year-old, who co-founded the company in 2006 and floated it on the New York Stock Exchange in 2013, said it has been “owned” by Wall Street and that Musk’s deal struck on Monday to take it private was the “correct first step”.

However Dorsey, who stepped down as Twitter chief executive in November and will receive a $978m payout for his 2.4% stake when the deal is completed later this year, said that ultimately “in principle I don’t believe anyone should own or run Twitter”.

“It wants to be a public good at a protocol level, not a company,” he said, in a series of tweets.

“Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”

Parag Agrawal, who took over from Dorsey as chief executive, has told staff that their jobs are only safe for about the six months it will take to get the deal is done.

“Once the deal closes, we don’t know which direction the platform will go,” said Agrawal, who is in line for a $38.7m pay package due to a “change of control” clause in his contract.