Twitter: Shares price decline by 25% after non-compliance with the new IT rules

Twitter’s share price submerged by 25%. The non-compliance with new IT rules is the ultimate cause of this fall.

On 16 June, Twitter lost its intermediary status.
Resultantly, the social media giant becomes responsible for any false information that could hamper or cause damage to the nation.

Twitter: Sudden decline in shares’ price?

Earlier, the intermediary title shielded social media apps from the responsibility of illegal or false information. Instead, the individual who posted was liable.
Henceforth, Twitter share prices have declined by 25%.
On 16 June, the closing stock price was $59.93. Although, on 17 June, it still closed at $60.71.
Surely, Wednesday sticks to be the turning point in the share price’s decline.

On 25 February, The Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) was introduced by the government to ensure regulation over unethical content.
The social media apps like Whatsapp, Facebook, Twitter, Signal, and all other social networking apps received  3 months to comply with the rules within the act.
Subsequently, the majority of the companies acted as per the new IT rules. Although, a few legal and other clashes went after the rules’ declaration.
The threat to the privacy of the users’ data was a major concern for apps like Whatsapp.
Hence, there were clashes over the rules.

Although most of the matters settled gradually. Further, the government provided an extended time period to comply with the rules.
Thereafter, Twitter even partially complied with the rules. Yet it failed to fully register itself under the IT rules.
This lead to the loss of the intermediary title of the social media giant.
Presently, a series of incidences lead to the formation of these rules. A man filed a complaint against the same social media platform for spreading misinformation that had the potential to ignite riots.
Also, Twitter has gone through statements of criticism for its management of false information.
It will be essential for the users to know how Twitter takes its stand on the entire matter.

Also Read: Beloved Social Media Platforms  Twitter, Whatsapp, Instagram to be banned in India