Twitter: India figures in Elon Musk’s failed deal to acquire the microblogging platform
Virendra Pandit
New Delhi: Twitter’s legal struggle in India has figured in Tesla chief Elon Musk’s failed deal to acquire the world’s leading microblogging site.
Musk, who is locked in a high-profile court battle with Twitter over a failed acquisition bid the microblogging platform is now pushing through, said the social media giant jeopardized its third largest market (India) by failing to disclose “risky” litigation against the Government of India, the media reported on Saturday.
In a lawsuit filed under seal last Friday in a Delaware court and made public on Thursday, Musk claimed he was “hoodwinked” into signing the USD 44 billion deal to buy the San Francisco-based social media firm.
According to the court documents, Musk asserted Twitter must follow Indian laws. The New York Times Technology Reporter Kate Conger @kateconger posted and circulated snapshots of these documents on Twitter itself.
“In 2021, India’s Information Technology Ministry unveiled rules allowing the government to probe objectionable social media posts, demand identifying information, and prosecute the firms refusing to comply.
Musk, a proponent of free speech, believes that moderation on the microblogging platform follows the laws of the countries it operates, the reports said.
Twitter responded by saying it “respectfully refers to the Court for their complete and accurate contents. Twitter lacks knowledge or information sufficient to form a belief as to the truth of the allegations.” It “therefore denies them on that basis.”
Referring to a petition filed in Karnataka High Court in July, Musk objected to Twitter’s failure to disclose litigation against the Government of India.
“Twitter avers it has challenged certain blocking orders issued by the Indian government under Section 69A of the Information Technology Act, directing Twitter to remove certain content from its platform, including content from politicians, activists, and journalists….”
Through its lawyer at the Karnataka High Court, Twitter said its India business would close if it complied with the government orders to block content that competent authorities had deemed illegal. The High Court had issued notices to the Centre and adjourned the hearing for August 25.
The world’s richest man and Twitter are now heading to trial on October 17 after Musk sought to abandon his deal to acquire the platform over what he said is a misrepresentation of fake accounts on the site.
Twitter is trying to compel Musk to follow through on the acquisition deal while accusing him of sabotaging it because it no longer served his interests.
In April, Musk reached an acquisition agreement with Twitter at USD 54.20 per share in a transaction valued at nearly USD 44 billion.
In May, however, he put the deal on hold to let his team review the veracity of Twitter’s claim that less than 5 percent of accounts on the platform are bots or spam.
According to media reports and experts, the two sides might reach an out-of-court settlement, and Musk may still gain Twitter for less than USD 44 billion!
