Foreign Stakeholders in Twitter Deal Might Come Under Investigation Following Legitimacy Concerns

The $44 billion acquisition of Twitter by Elon Musk is still under investigation by the authorities. The US government is investigating, according to a Bloomberg story, if Musk’s overseas investment stakeholders have access to consumers’ personal information on the site.

Bloomberg reported that the government is requesting additional information regarding Musk’s secret agreements with the foreign investors who have holdings in the firm, including Prince Al Waleed bin Talal Al Saud of Saudi Arabia and the Qatar Investment Authority. Concern has also been raised about Musk’s business relationships in China and Ukraine.

The chairman of the Committee on Foreign Investment in the US (CFIUS), Treasury Secretary Janet Yellen, said earlier this week that she sees “no basis” to look into Musk’s purchase of Twitter. While Senator Chris Murphy (D-CT) also requested that CFIUS investigate into Saudi Arabia’s ownership of Twitter, President Joe Biden said that Musk’s “relationships with other countries are worthy of being looked at.” In reaction to Yellen’s speech, Murphy stated, “I don’t understand this decision. “CFIUS is designed on examining deals like these.”

Diverse legislators are also urging the Federal Trade Commission to take action against Twitter, including Richard Blumenthal (D-CT), Dianne Feinstein (D-CA), Elizabeth Warren, Ed Markey, Ben Ray Luján, and Cory Booker (D-NJ). The senators want the FTC to look into whether Musk’s Twitter has broken any consumer protection rules in a letter to Lina Khan, the head of the agency. They say Musk “has taken alarming steps that have undermined the integrity and safety of the platform.” In the letter, Musk’s Twitter Blue with verification subscription is mentioned. Twitter removed this service when it was overrun with phony verified accounts. Later this month, Musk intends to reinstate Blue with verification.

Additionally, Twitter must abide by the terms of the agreement it made with the FTC earlier this year regarding allegations that it sold targeted advertisements using personal information. Musk’s acquisition of Twitter has generated fears that he might face pressure from governments aiming to curtail freedom of expression online.