X has succeeded in blocking a part of California's content moderation law.

Illustration: The Verge

An appeals court has ruled that a California law requiring social platforms to report their efforts to combat misinformation and hate speech likely violates the First Amendment. X has won an appeal to block parts of the content moderation law, which mandates social platforms to publicly post policies against hate speech and misinformation, and submit semiannual reports on their enforcement efforts. 

According to Bloomberg Law, a federal appeals court concluded on Wednesday that the reporting aspect of the law probably violates the First Amendment. In the lawsuit against California last year, X alleged that the state's social media law violates free speech by forcing companies like X Corp. to engage in speech against their will. 

A California judge initially denied X's request for a preliminary law injunction, stating that the enforcement reporting requirement doesn't seem "unjustified or unduly burdensome within the context of First Amendment law." 

However, the appeals court has now overturned this decision, stating that the law's requirements are "more extensive than necessary to serve the State’s purported goal of requiring social media companies to be transparent about their content-moderation policies."Since Elon Musk acquired X, the platform's content moderation team has been significantly reduced.

 As a result, X has faced criticism for not removing misinformation and hate speech from the platform, despite having policies against both. In response to the appeals court ruling, the office of California Attorney General Rob Bonta has stated that they are reviewing the opinion and will respond appropriately in court. Meanwhile, X has called the decision a "victory" for the platform and "free speech nationwide."