The consumer protection authority has the social network in its sights.
(Photo: Reuters)
san francisco According to a media report, the US consumer protection agency FTC is intensifying its examination of security standards and data protection regulations at Twitter. FTC attorneys spoke with two former Twitter executives last month about maintaining a 2011 consensus agreement with the agency, Bloomberg reported on Tuesday, citing people familiar with the matter.
The FTC asked the platform if it had sufficient resources to fulfill the agreement. No comment was initially available on Twitter. The FTC declined to comment on it.
Twitter boss Elon Musk has made several controversial changes since taking over the social network. After the dismissal of management and half of the workforce, he caused unrest in the past few days by blocking the user accounts of American journalists. After international criticism, he reversed this decision.
Musk had spent around $44 billion on the platform. Investors hope for good profits under his leadership. According to one of the investors involved in the takeover, it assumes that the capital employed will be increased fivefold. “We believe that in just a few years, Twitter will generate a four to five times return,” Aliya Capital Partners chief executive Ross Kestin said in a statement Tuesday.
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The risk is comparatively limited. Kestin referred to Musk’s successes at Tesla and SpaceX. When the auto industry around the world just kept building “the same boring product,” Musk created an industry. “When Nasa couldn’t take off with their rockets, this man’s vision took off,” Kestin wrote. “It’s happening again on Twitter.”
Musk did not comment. Questions to Kestin regarding the current challenges in transforming Twitter initially went unanswered. Miami-based Aliya manages money from wealthy families and contributed $360 million to Musk’s deal.
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