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X<\/a> owner Elon Musk has sprung to the defense of the founder of controversial messaging app Telegram, calling for the 39-year-old to be released from French custody.<\/p>\n The spectacular arrest of Pavel Durov on the tarmac of Paris\u2019s Le Bourget airport just after his private jet touched down on\u00a0Saturday<\/a>\u00a0elicited an intense debate over where exactly the boundaries of protected free speech end and the rule of law begins.<\/p>\n Durov is being held in France\u00a0initially without formal charges<\/a>, but authorities <\/strong>could accuse the Telegram founder of failing to police\u00a0illegal content and commerce<\/a>\u00a0conducted via Telegram.<\/p>\n Musk\u2019s X <\/strong>is likewise in the crosshairs of European <\/strong>policymakers, with the EU Commission recently reminding him of its failure to observe the\u00a0Digital Services Act<\/a> that requires large platform owners to systematically clamp down on false and misleading content.<\/p>\n The entrepreneur, who is also CEO of Tesla<\/a> and SpaceX<\/a>, called on France to \u201cfree Pavel<\/a>\u201d, warning his arrest signalled\u00a0dangerous times<\/a>\u00a0ahead for democracy.\u00a0<\/p>\n \u201cThe 2nd amendment is the only reason long-term that the 1st amendment will be upheld,\u201d he\u00a0added<\/a>, referring to the constitutionally-protected right in the United States to bear arms and exercise free speech.\u00a0<\/p>\n POV: It\u2019s 2030 in Europe and you\u2019re being executed for liking a meme https:\/\/t.co\/OkZ6YS3u2P<\/a><\/p>\n \u2014 Elon Musk (@elonmusk) August 24, 2024<\/a><\/p><\/blockquote>\n Musk increasingly casts himself as someone trying to stem a rising tide of censorship and government overreach. The X owner, earlier this month, threw a vulgar insult<\/a>\u00a0at Brussels for its perceived heavy handed approach to regulation. (Musk has, as of now, yet to criticize China, the manufacturing hub for half of Tesla cars).<\/p>\n Chris Pavlovski, CEO of YouTube<\/a> rival Rumble,\u00a0used<\/a> similarly blunt language after claiming to have \u201csafely\u201d departed European soil.<\/p>\n \u201cFrance has threatened Rumble, and now they have crossed a red line by arresting Telegram\u2019s CEO, Pavel Durov, reportedly for not censoring speech,\u201d he\u00a0posted<\/a>\u00a0on Sunday. \u00a0<\/p>\n It\u2019s unclear what Pavlovski was doing in Europe, and he did not respond to a request from Fortune<\/em> for comment. <\/p>\n This year has been one of the biggest tests for democracy in recent memory, with elections held in countries comprising more than half the world\u2019s population.<\/p>\n Election integrity<\/a> has therefor been a major concern across the political spectrum. Regulators like the EU Commission have been particularly sensitive to the risk that hoaxes can spread instantly across social media like Telegram or X where there is little to no oversight or accountability.\u00a0<\/p>\n In a statement, Telegram countered allegations of presumed wrongdoing by saying Durov had \u201cnothing to hide<\/a>\u201d and claimed the Dubai resident with French citizenship regularly travels to Europe, pushing back against the notion he had only now been arrested after finally stepping on EU soil.\u00a0<\/p>\n The arrest of Pavel Durov is worrying.<\/p>\n Telegram is a secure free speech app. It may have some bad actors, but then all platforms do.<\/p>\n What next\u2026 the arrest of Elon Musk?<\/p>\n \u2014 Nigel Farage MP (@Nigel_Farage) August 25, 2024<\/a><\/p><\/blockquote>\n Nigel Farage, the head of the populist Reform Party in the UK and a close associate of Republican presidential nominee Donald Trump, conceded that bad apples are common on social media platforms like Telegram.<\/p>\n \u201cThe arrest of Pavel Durov is worrying,\u201d he\u00a0posted<\/a>. \u201cWhat next\u2026 the arrest of Elon Musk?\u201d\u00a0<\/p>\n Rumble stands with Telegram.<\/p>\n \u2014 Chris Pavlovski (@chrispavlovski) August 25, 2024<\/a><\/p><\/blockquote>\n Alexander Vindman, the retired U.S. Army lieutenant colonel that testified as a key witness in Trump\u2019s first impeachment, wrote that Durov\u2019s case had broader implications for social media sites like X.<\/p>\n \u201cThere\u2019s a growing intolerance for platforming disinfo & malign influence & a growing appetite for accountability,\u201d he\u00a0wrote<\/a>. \u201cMusk should be nervous.\u201d<\/p>\n Last month, Musk posted a\u00a0deepfake video<\/a>\u00a0with an AI-generated voiceover of Kamala Harris calling herself a diversity hire and Biden senile. The post didn\u2019t explicitly mention the use of AI in what some argued was a violation of X\u2019s his own terms of service<\/a> against manipulating content for the purposes of deception.<\/p>\n Musk later\u00a0shared a fabricated story<\/a>\u00a0purportedly by UK daily newspaper The Telegraph<\/em> reporting that British rioters would be deported to the Falkland Islands, near Argentina. The Tesla CEO quietly deleted the post, which racked up millions of views,<\/strong> after he was called out for distributing disinformation.<\/p>\n \u201cPropaganda isn\u2019t just about creating fake news,\u201d Musk would go on to\u00a0explain<\/a>\u00a0last week, without referring to any specific incident. \u201cIt\u2019s also about hiding real news.\u201d<\/p>\n Musk\u2019s stewardship of X is turning into a financial disaster for the entrepreneur. According to internal company figures\u00a0cited<\/a>\u00a0by the\u00a0New York Times<\/em>, U.S. revenue in Q2 plunged to $114 million, representing a steep 84% decline over pre-Musk Twitter just two years prior.\u00a0<\/p>\n Fidelity has taken a massive charge<\/a> on the value of its private investment<\/a> in X, while money managers are treating the company\u2019s debt as if it was radioactive. A consortium of banks that underwrote Musk\u2019s October 2022 buyout have been unable to offload<\/a> nearly $13 billion of leveraged loans still sitting on their book<\/p>\n Tesla investors now fear Musk will\u00a0liquidate more stock<\/a> just\u00a0to keep X afloat.<\/p>\n When reached by\u00a0Fortune<\/em>\u00a0for comment, X replied it was busy. Musk did not respond to a request.<\/p>\n<\/div>\n\n\n
\u2018What\u2019s next\u2026 the arrest of Elon Musk?\u2019<\/h2>\n
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X in financially troubled waters, leaving its banks on the hook<\/h2>\n
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