Twitter Stock Drops: Twitter is finding it very costly to clash with the Indian government over new IT regulations. The Indian government has issued new IT regulations that apply to all social media platforms. However, Twitter is bearing the brunt of the consequences of not adhering to these guidelines, as evidenced by the weakening condition of its stock. Its stock has plummeted in value.
India has angered Twitter.
Twitter’s stock on the New York Stock Exchange (NYSE) has dropped more than 25% from its 52-week high due to its disagreements with the Indian government. In India, Twitter lost its intermediate status on June 16. According to the Indian government, Twitter has been given numerous opportunities to avoid the new IT restrictions. Twitter’s stock slid half a percent to $ 59.93 on the New York Stock Exchange on Wednesday.
However, the company’s stock rose on Thursday when IT Minister Ravi Shankar Prasad stated that Twitter would not be banned in India. The price of Twitter has dropped from a 52-week high of $ 80.75 per share on February 26, 2021, to $ 59.93, a loss of 25.78 percent. Since February 26, Twitter has lost $ 13.87 billion in market capitalization or 22.54 percent of its value.
There have been tremors before
Even before this, Twitter was taken aback when it became involved with the Indian government. The Government of India submitted a notice to Twitter on November 13, 2020, after Leh was represented as part of Jammu and Kashmir instead of the Union Territory of Ladakh. Soon after, the hashtag #BanTwitter began trending on social media, and Twitter’s stock dropped to $43.48.
What is the meaning of intermediate status?
According to Section 7 of the new IT Rules, if social media sites do not follow the rules, they lose their intermediate status, and the complete responsibility for whatever content is posted on the website falls solely on the social media website, in this case, Twitter. That is, Twitter will now be held accountable in India for third-party criminal content under the IPC. Twitter had already been granted legal protection under section 79 of the Information Technology Act.