The FTC’s Twitter investigation searched for journalists’ names in Elon Musk’s internal communications

The FTC is also seeking to remove Mr. Musk in connection with the investigation.

“We are concerned about the impact of these staffing cuts on Twitter’s ability to protect consumers’ information,” an FTC official wrote to Twitter’s lawyers on Nov. 10 after an initial wave of layoffs, according to a copy of the letter seen by the Journal.

The so-called letters of request were obtained by the Republican-led House Judiciary Committee, excerpts of which were published Tuesday in a task force report on the FTC investigation.

The letters indicate that Twitter responded to the FTC, but that the agency felt as of late January that the company was engaging in a “disturbing pattern of persistent delays” that raise “serious concerns about its compliance.”

“Protecting consumers’ privacy is exactly what the FTC is supposed to do,” said FTC spokesman Douglas Farrar. He said the agency “is conducting a rigorous investigation of Twitter’s compliance with the consent order that went into effect long before Mr. Musk purchased the company.”

Mr. Farrar said the FTC routinely seeks information that companies under a consent order provide to third parties, including journalists, on the grounds that a company cannot withhold that same information from the FTC.

Twitter did not respond to requests for comment.

The inquiries by the Federal Trade Commission, led by Democrat Lena Khan, track mass layoffs by Mr. Musk that have raised concerns within the agency about the company’s ability to comply with a $150 million settlement related to alleged privacy violations.

In November, the FTC said its order accompanying the 2022 settlement “gives us new tools to ensure compliance, and we are ready to use them… No CEO or company is above the law.”

The Judiciary Committee’s report, the first by a new subcommittee examining what Republicans call “weaponizing” federal agencies, accused the FTC of overstepping its authority when prodding progressive groups unhappy with Mr. Musk’s acquisition of the company.

“There is no logical reason, for example, why the FTC would need to know the identities of journalists who interact with Twitter,” the report said. “There is no logical reason why the FTC would need, on the basis of user privacy, to analyze all decisions of Twitter employees. And there is no logical reason why the FTC would need every internal Twitter communication about Elon Musk.”

When asked in December about Twitter’s investigation in an interview with the magazine, Ms. Khan declined to discuss the specifics of the case but said the FTC wants to “make sure that we fully implement the orders that we have on the books.”

She said Twitter’s 2022 order is “more mandatory and detailed” than an earlier FTC settlement with the company from 2011.

Mr. Musk told Twitter employees in November that the company would do whatever it takes to follow both the letter and the spirit of the FTC’s order, the newspaper reported at the time.

Mr. Musk said in December that the company’s workforce had been reduced to nearly 2,000 from 8,000, sparking a debate about whether tech companies in general are overstaffed as well as questions about Twitter’s ability to comply with security practices and perform other functions. .

In remarks at a tech conference in San Francisco on Tuesday, Musk said Twitter would have gone bankrupt within a few months if it hadn’t taken steps to cut costs.

The FTC letters, dating from November 10 to February 1, asked Twitter to quantify the number of layoffs and resignations across the board. its divisions. The agency sought a detailed account of the new executives’ responsibilities, including who will oversee matters of privacy and security.

One of the messages was pressed for an explanation for the departure of Jim Baker, a former Justice Department official who until December was one of Twitter’s top attorneys responsible for ensuring compliance with the FTC order.

The FTC also required all internal Twitter communications “related to Elon Musk,” sent “at the direction of or received by” Mr. Musk.

Mr. Musk was scheduled to be deposed by the FTC on Feb. 3, but there was a potential dispute related to court testimony in a securities lawsuit, according to the FTC letter dated Jan. 24. A person familiar with the matter said the briefing did not happen.

The FTC also pressed Twitter about whether it was conducting in-depth privacy reviews before implementing product changes such as the new version of Twitter Blue, as required by the 2022 order. The agency sought detailed records on how Twitter users were notified of the product changes.

She asked Twitter to explain how it handled a recently reported leak of Twitter user profile data, to account for changes to the way users authenticate their accounts, and to describe how it launders sensitive data from sold office equipment.

On Dec. 13, the FTC asked about Twitter’s decision to give journalists access to internal company communications, a project Mr. Musk has dubbed “Twitter Files” and which he says sheds light on controversial decisions made by the administration. previous.

The agency asked Twitter to describe “the nature of the access granted to each person” and how allowing such access “is consistent with its privacy and information security obligations under the Order.” It asked if Twitter conducted background checks on journalists, and if they had access to the personal messages of Twitter users.

House committee report reflects Sharp partisan divide over Mr. Musk’s takeover of Twitter.

Republicans contend that prior to the takeover, Twitter censored conservative views — citing among other things its decision to ban former President Donald Trump from the platform, a decision Mr. Musk has reversed. Former Twitter executives have denied political bias.

The GOP-led Judiciary Committee report says Mr. Musk “reshaped Twitter to reinvigorate free speech online.”

Democrats including President Biden have raised concerns about Mr. Musk’s estate, saying he could potentially jeopardize the platform’s ability to secure the personal data of its users. Seven Democratic senators on November 17 called on the Federal Trade Commission to investigate, among other things, whether Twitter users were harmed by fraudulent accounts created after the launch of a new version of Twitter. Twitter Blue that month.

Senator Richard Blumenthal (Dr.

Concerns about possible violations of the FTC’s order were also raised in August 2022 by a former Twitter security executive turned whistleblower. The company said at the time that the allegations were not accurate.

If the FTC concludes that Twitter violated the 2022 order, the agency could seek financial penalties, trade restrictions, or penalties for responsible executives.

Write to Ryan Tracy at [email protected]