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Twitter takeover: EU warns Elon Musk must comply or face sanctions | Mergers and acquisitions

The EU has warned Elon Musk that Twitter must “follow our rules” or face sanctions ranging from fines to total bans, as fears have been expressed that hate speech will increase on the platform it owns.

The world’s richest man has agreed to a $ 44 billion (£ 34 billion) deal to buy a social media network that will hand over control of a platform of 217 million users to a self-proclaimed “absolutist of freedom of speech.”

Thierry Breton, EU Commissioner for the Internal Market, turned to Twitter on Tuesday to remind Tesla’s CEO that he would have to abide by the newly passed Digital Services Act, which requires online platforms to deal with illegal content such as speech. of hatred.

“Whether it’s cars or social media, every company operating in Europe must follow our rules – regardless of their stake,” Breton wrote. “Mr. Musk knows this well. He is familiar with European rules for the automotive industry and will quickly adapt to the Digital Services Act.

Speaking to the Financial Times, Breton added: “We welcome everyone. We are open, but on our terms. At least we know what to say to him: “Elon, there are rules. Welcome, but these are our rules. Your rules don’t apply here. “

He warned that companies violating the new rules, which are expected to take effect in 2024, could face fines of up to 6% of global turnover and outright bans on repeat offenders.

The law will require social media platforms to allow users to tag illegal content – such as incitement to terrorism or commercial fraud – in an “easy and effective way” so that it can be removed quickly.

Whether it’s cars or social media, every company operating in Europe must follow our rules – regardless of their shareholding.

Mr. Musk knows this well.

He is familiar with European rules for the automotive industry and will quickly adapt to the Digital Services Act. # DSA

– Thierry Breton (@ThierryBreton) April 26, 2022

Breton spoke as human rights groups reacted on Twitter, which accepted Musk’s offer with warnings of harmful consequences if the billionaire’s commitment to free speech led to a relaxation of restrictions on harmful content.

Amnesty International has said it is concerned about any decision Twitter may make after Musk’s takeover to undermine the implementation of policies and mechanisms designed to tackle hate speech online.

“The last thing we need is Twitter, which deliberately closes its eyes to violent and insulting speech against consumers, especially those most affected, including women, non-binary individuals,” said Michael Kleinman, director of technology. and human rights at Amnesty International USA,

Deborah Brown, a digital rights researcher and advocate for Human Rights Watch, said even small changes to the platform could have a devastating impact.

“Regardless of who owns Twitter, the company has responsibilities for human rights to respect the rights of people around the world who rely on the platform. “Changes in its policies, functions and algorithms, large and small, can have a disproportionate and sometimes devastating impact, including offline violence,” she said.

The United Kingdom is also introducing a tighter regulatory regime for digital platforms with an online security bill that requires companies such as Twitter and Facebook to protect consumers from harmful content and carries the threat of fines of billions of pounds for violations.

Imran Ahmed, the campaign’s chief executive of the Center for Combating Digital Hate, said: “The United Kingdom and the EU will have the tools to deal with this. Twitter will find it very difficult to work in the UK if it tries to work on the basis of completely free speech and zero rules.

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

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

However, Dorsey, who stepped down as Twitter’s chief executive in November and will receive a payout of $ 978 million for his 2.4% stake when the deal is closed later this year, said that in the end “in principle no I believe that someone should own or manage Twitter. “

“He wants to be a public good at the protocol level, not a company,” he said in a series of tweets. “However, solving the problem is a company, Elon is the only solution I believe in. I trust in his mission to expand the light of consciousness. “

Parag Agraval, who took over from Dorsey as chief executive, told employees that their work was safe for only about six months, which would take to reach a deal.

“Once the deal is done, we don’t know which way the platform will go,” said Agraval, who is on the line for a $ 38.7 million pay package due to a “change of control” clause in his contract.

Donald Trump, who was banned from Twitter after the Capitol riots in the United States last January, said he would not return to the platform even if Musk allowed it. Musk said he preferred temporary timeouts for users who violated Twitter’s policies instead of outright bans.

Musk struck a $ 44 billion deal to buy Twitter after dramatic weeks of speculation about the platform’s future sparked by Musk’s emergence as its largest shareholder on April 4. He then announced a takeover bid on April 14, offering to buy all of the shares on Twitter for $ 54.20 each.

Initially, the Twitter board seemed against, introducing an anti-swallowing measure known as a “poison pill” that could make an attempt at swallowing prohibitively expensive. But his initial reluctance to accept the deal seems to be fading after Musk approved a financing package for the deal – including $ 21 billion in his own money, along with debt financing from Morgan Stanley and other financial institutions – and shareholders backed him.

Ross Gerber, a Tesla investor described as close to Musk, tweeted that Musk was “more powerful than the countries now,” adding Twitter and its hundreds of millions of users to a portfolio that includes aerospace company Space X.

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Musk has promised to clear Twitter bots on the platform, which has been used to try to manipulate major events such as political elections.

However, Vivian Schiller, the former head of Twitter’s news and journalism partnerships, fears that Musk may not realize the challenges of moderating content.

“I think he may just not realize that the decisions that will have to be made, eventually contacting him, are incredibly complex,” she told BBC Radio 4’s Today program. “I believe in freedom of speech,” but what do you do when you talk about incitement to violence, hate speech, or other forms of truly disturbing content?