The Federal Trade Commission says developments at Twitter could risk it violating regulatory orders.
Twitter paid the fine in May to settle allegations it had illegally used users' data to help sell targeted ads.
Since taking charge, Mr Musk has fired former chief executive Parag Agrawal and other top management, and the company's advertising and marketing chiefs have also left, adding to concerns that Twitter does not have enough people in place to oversee that it remains compliant with regulations.In addition, some big advertisers have been spooked by the direction Mr Musk is taking the social media firm.
On Thursday, Chipotle Mexican Grill said it had pulled back its paid and owned content on Twitter "while we gain a better understanding on the direction of the platform under its new leadership". Some brands are said to be concerned that Mr Musk will relax content moderation rules and reverse permanent Twitter bans given to controversial figures, including former US president Donald Trump.
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