Musk’s Twitter play has some telecom implications

The biggest story in tech this week is without a doubt Elon Musk’s deal to buy Twitter for $44 billion and to take the company private. And while that deal doesn’t touch directly on wireless or wired telecom networks, there are some connections related to the Federal Communications Commission, spectrum and telecom policy. First, no one is suggesting that the deal won’t happen. New Street Research policy analyst Blair Levin said there aren’t any big antitrust issues. It would be different if a social media competitor, such as Meta, were trying to buy Twitter. But Musk’s portfolio of companies, including Tesla and SpaceX, doesn’t include anything directly competitive. The FCC will have to approve the deal, but Levin said, “It is unlikely in my opinion that there will be an FCC problem.” However, Musk may run into entanglements with the FCC, related to Section 230 of the Communications Decency Act of 1996, after he acquires Twitter. Section 230 became an issue for a time toward the end of the Trump Administration. “Both Democrats and Republicans tended to favor a reform of Section 230 for different reasons,” said Levin. Musk could find himself in the middle of all that and working with the FCC on Section 230 reforms. Levin said that Musk’s businesses all have considerable interactions with the government. “The most vulnerable is SpaceX. It would not be difficult for an FCC to decide spectrum disputes in ways that cannot be tied to Musk’s handling of Twitter but can shift the competitive environment in the space industry.”