WASHINGTON, Oct 15 (Reuters) - Federal Communications Commission chairman Ajit Pai said Thursday the agency will move forward to set new rules to clarify the meaning of a key legal protection for social media companies.

U.S. President Donald Trump in May directed the U.S. Commerce Department to file a petition with the FCC seeking to curb legal protections for social media companies over a provision known as "Section 230." Pai said the FCC's general counsel said the agency "has the legal authority to interpret Section 230." (Reporting by David Shepardson)