Elon Musk, Chief Executive Officer of SpaceX and Tesla, gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTERS/Gonzalo Fuentes/File Photo

By Jonathan Stempel

NEW YORK (Reuters) -New York asked a judge on Monday to dismiss a lawsuit by Elon Musk's X to void a state law requiring social media companies to disclose how they monitor hate speech, extremism, harassment, foreign political interference and disinformation.

The state's attorney general, Letitia James, said the Stop Hiding Hate Act helps consumers understand what to expect from social media, without blocking platforms from speaking out or exercising judgment when moderating content.

James said requiring platforms to disclose their content moderation policies and enforcement activity "furthers the state's legitimate interests in empowering consumers to make informed choices about their use of social media."

X was once known as Twitter, and its lawyers include prominent First Amendment lawyer Floyd Abrams.

The lawyers did not immediately respond to requests for comment on James' filing in Manhattan federal court.

X CITED SIMILAR CALIFORNIA LAW THAT WAS BLOCKED

Musk's company argued that New York's law unconstitutionally exposed it to lawsuits and big fines unless it disclosed "highly sensitive and controversial speech" that the state found objectionable.

X also cited a September 2024 federal appeals court decision that partially blocked on free speech grounds a California law on which New York modeled its own law. California later agreed not to enforce its law's disclosure requirements.

James said the appeals court in the California case relied on an "erroneous premise" that social media companies' content moderation policies are not commercial speech, a premise that the federal appeals court for New York cases has rejected.

NEW YORK LAW IMPOSES DAILY FINES PER VIOLATION

Signed last December by Governor Kathy Hochul, New York's law requires social media companies with at least $100 million of annual revenue to disclose how they eliminate hate on their platforms, and report their progress.

Civil fines can reach $15,000 per violation per day. The law was written with help from the Anti-Defamation League.

Musk did away with Twitter's content moderation policy after he bought that company for $44 billion in 2022.

The world's richest person and former close adviser to Republican President Donald Trump has described himself as a free speech absolutist.

The case is X Corp v James, U.S. District Court, Southern District of New York, No. 25-05068.

(Reporting by Jonathan Stempel in New York; Editing by Stephen Coates)