Elon Musk has pledged to challenge the European Union in court following the EU’s claim that X, previously known as Twitter, violated the Digital Services Act (DSA). The platform’s blue-tick verification system, among other practices, is central to the dispute. Musk’s bold stance sets the stage for a prominent legal confrontation that could have significant implications for social media regulation.
EU’s Findings and Allegations
The European Commission presented initial findings from its investigation into X, indicating that the social media platform breached the DSA in three major areas:
1. Misleading Blue Ticks: The Commission argues that X’s blue-tick system, now accessible to any paying user, misleads users by giving credibility to potentially unreliable accounts. This is a significant change from the previous system, where blue ticks were reserved for notable individuals and institutions, signifying trustworthiness.
2. Lack of Data Accessibility for Researchers: The platform has been criticized for not providing adequate access to publicly available data, such as user posts, which hampers researchers’ ability to study the platform’s content and the spread of misinformation.
3. Inadequate Advertising Library: X’s advertising database does not meet the DSA’s transparency requirements, making it difficult for researchers to scrutinize advertisements, including potentially misleading ones.
Thierry Breton, the EU’s Commissioner for the Internal Market and a key architect of the DSA, highlighted that blue checks used to symbolize trust. “Currently, with X, our initial assessment is that they mislead users and violate the DSA,” Breton stated. The Commission has allowed X to address these findings, but if the breaches are verified, the company could be fined up to 6% of its global revenue.
Musk’s Response
Elon Musk, in his typical confrontational style, responded on X on Friday, promising, “We look forward to a very public battle in court.” He also accused the European Commission of proposing an “illegal secret deal” to avoid fines by quietly censoring user content, although he did not provide specific details or evidence for these claims.
X, under Musk’s ownership, has not disclosed formal financial figures. However, Elon Musk has admitted to a significant drop in advertising revenue, the platform’s primary income source, since his acquisition in 2022. He predicted the company’s revenue would reach $3 billion in 2023, a stark contrast to its previous earnings. The introduction of paid blue ticks, costing €8 a month in the EU, aimed to boost revenue but has been criticized for enabling bad actors to exploit the verification system
The EU’s investigation into X represents the first preliminary findings under the DSA, with similar inquiries ongoing against other tech giants like TikTok and Meta. The DSA is a significant regulation aimed at holding social media platforms accountable for protecting users and ensuring transparency, with the goal of reducing illegal content and misinformation.
In response to Musk’s accusations, Thierry Breton reiterated that no secret deal was offered. He clarified that Musk’s team had requested details on the complaint according to established regulatory procedures. “Up to you to decide whether to offer commitments or not. That is how rule of law procedures work. See you (in court or not),” Breton wrote on X
As this situation progresses, the world watches to see how the conflict between one of the most influential tech entrepreneurs and the European Union will unfold. The outcome could set a precedent for future interactions between global tech companies and regulatory bodies, potentially reshaping the landscape of social media governance. Whether resolved in court or through regulatory compliance, the dispute over X’s practices is poised to be a defining moment in the ongoing debate over digital regulation and platform accountability.
