Twitter (TWTR  ) is legally liable for any content posted to its flagship platform, according to court filings submitted by the Indian government.

According to experts, with the matter now heading to New Delhi's High Court, the final decision over whether Twitter will lose its liability protection rests with the Indian legal system. While under domestic law, firms such as Twitter or Facebook (FB  ) are protected under federal law, the Indian government passed new regulations in May that enacted requirements for said immunity.

According to India's IT ministry, Twitter's immunity is being revoked because it is in violation of those requirements.

"All social media platforms are welcome to do business in India. They can criticize Ravi Shankar Prasad, my Prime Minister or anyone. The issue is of misuse of social media. Some of them say we are bound by American laws. You operate in India, make good money, but you will take the position that you'll be governed by American laws. This is plainly not acceptable," said Indian IT Minister Ravi Shankar Prasad.

Should Indian courts rule against Twitter, it would set a precedent against the safe harbor laws that tech firms enjoy in most markets. Legal challenges to remove offensive content could potentially leave executives facing charges if such protections were lost.

Twitter, however, doesn't stand alone in violation of the Indian government's new regulations. WhatsApp remains in noncompliance with a key rule requiring encrypted messaging apps to include a means of tracking offensive/harmful messages back to their sender. WhatsApp filed a lawsuit against the Indian government in May, contesting this requirement, claiming that it violated users' constitutional right to privacy.

Twitter's impending legal battle doesn't appear to have concerned investors much, at least by the time of writing. Twitter shares were up 1% on Tuesday as markets neared close at $69.93, a modest improvement over Friday's close of $69.21.