News that Elon Musk has paid $43 billion for social media platform Twitter is encountering new resistance, as the world digests the news of how speech might be affected on the social media site.
Regulators in particular are now taking a closer look at the Twitter/Musk deal.
Musk's regular sparring partner Elizabeth Warren (D-Mass.) weighed in April 25 on the deal, saying it needed much closer scrutiny.
“It’s dangerous because one billionaire decides how millions of people will have an opportunity to communicate with each other,” Warren said in a statement after the deal was announced.
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American Lawmakers Zero In on Twitter Deal
The Twitter deal has also grabbed the notice of Republican lawmakers, 18 of which sent a demand that all records related to the deal be preserved.
Republicans have found Twitter a useful recruiting and media tool after former president Donald Trump turned the platform into his primary propaganda distribution method.
Now, with Trump still suspended, Republicans are keeping a close eye on the deal's approval -- and have signaled they will make it a priority if they take back the House during midterm elections in November.
How much that assuages other regulators, including antitrust regulators with governing bodies like the Federal Trade Commission, remains to be seen.
“It seems to me he has a major stake in two transportation companies at the moment,” William Kovacic, a former chair of the F.T.C., told the New York Times. “And it’s hard to see how Twitter has much to do with either one of them.”
Others watching the market and involved in regulatory circles disagreed, with former antitrust guru Bill Baer saying the Justice Department should “look hard to see whether there is a risk to competition and to consumers.”
Warren agreed with that assessment and even leaned into a Republican talking point, saying that the buyout of Twitter is anathema to free market principles.
"Concentration of power means less competition, and ultimately means just one or a handful of people are deciding who talks, who gets heard and who gets shut down," Warren said in a statement April 25.
Consternation Grows Across The Pond
But beyond his usual critics, Musk's buyout of Twitter has attracted the attention of global regulators, particularly in Europe.
Britain's Minister of State for the Pacific and the International Environment Zac Goldsmith tweeted that he is worried that the deal may create a fundamental change in how Twitter is run and how speech is expressed there.
Big Tech has encountered years of skepticism from European authorities, who have put curbs on its attempts to harvest user data.
The European Union has also passed the Digital Services Act (DSA), which is designed to make platforms quickly and aggressively remove forms of harassment, hate speech, and harmful material.
"[Europe] welcome[s] everyone. We are open but on our conditions," Thierry Breton, a member of the European Commission, said Tuesday.
'Elon, there are rules," he said. "You are welcome but these are our rules. It’s not your rules which will apply here.'"
Breton also pointed out that Musk has a small advantage dealing in the E.U. because he operates one of Tesla's Gigafactories in Berlin, and thus should be prepared to adapt to foreign regulations.
Still, if Twitter can't comply with EU standards voluntarily, lawmakers have already warned that they have penalties lined up and ready to go to get the company to pay attention.
"If [Twitter] does not comply with our law, there are sanctions: 6% of the revenue and, if they continue, banned from operating in Europe," Breton told the Financial Times.
