‘Misleads users’: Elon Musk’s X violates EU online content rules | Regulatory News

The company could be fined up to 6% of its total annual worldwide turnover if the findings are later confirmed.

Elon Musk’s social media platform X violates the European Union’s online content law, according to preliminary findings by regulators that could lead to hefty fines for the company.

The European Commission, the executive arm of the 27-member bloc, announced on Friday that the controversial social media platform is violating the Digital Services Act (DSA) in areas linked to “murky standards, advertising transparency and access to data for researchers.”

The investigation, which began in December 2023, reached its preliminary conclusions through the analysis of internal company documents and interviews with experts. The DSA requires major online platforms and search engines to do more to combat illegal content and public safety risks.

It found that X, formerly Twitter, uses the so-called “blue checkmark” in a way that does not correspond to industry practices and “misleads users”.

“Because anyone can apply for this ‘verified’ status, it negatively impacts users’ ability to make free and informed decisions about the authenticity of the accounts and content they interact with. There is evidence of motivated malicious actors abusing the ‘verified account’ to deceive users,” the commission said.

In the past, #BlueChecks used to mean reliable sources of information

Now with X, our preliminary view is that:

They deceive users

They infringe #DSA

X now has the right to defense – but if our opinion is confirmed, we will impose fines and demand significant changes. pic.twitter.com/M9tGA5pYQr

-Thierry Breton (@ThierryBreton) July 12, 2024

It concluded that X does not meet the required transparency in advertising matters, refusing to provide a searchable and reliable advertising repository.

It was also found that researchers.

The company will now have the opportunity to analyze the findings in detail and present a formal response.

“X now has the right to defense – but if our opinion is confirmed, we will impose fines and demand significant changes,” said European Commissioner Thierry Breton in a statement – ​​published in X.

If the findings are ultimately confirmed, a verdict of non-compliance could result in fines of up to 6% of the company’s total annual worldwide turnover. Musk took the company private after purchasing Twitter in 2022, meaning its financial performance data is no longer publicly available.

The commission could also impose periodic financial sanctions and implement periods of enhanced supervision.

“The DSA has transparency at its core and we are determined to ensure that all platforms, including X, comply with EU law,” said commission official Margrethe Vestager.

In 2024, the commission also opened formal proceedings against TikTok, the Chinese website AliExpress and Meta.