The European Commission has accused X, formerly known as Twitter, of violating the Digital Services Act (DSA). This is the first charge against a tech company under the new social media regulations that recently came into effect in the European Union. The Commission’s preliminary findings have sparked a contentious response from X’s owner, Elon Musk.
The Digital Services Act and Its Requirements
The DSA is a comprehensive set of regulations designed to make online platforms more accountable for the content they host and ensure the protection of European users. Platforms must actively work to remove harmful or illegal content and provide transparency in their operations, including the management of advertisements and user data. Non-compliance with these rules can result in significant fines, up to 6% of a company’s annual global revenue.
Allegations Against X
The European Commission’s investigation into X highlighted several key areas where the platform allegedly falls short of DSA requirements:
Misleading Blue Checkmarks
The European Commission accused X of using “dark patterns” with its blue checkmarks, which can mislead users about the authenticity of accounts. Originally, these verification badges were reserved for notable figures such as celebrities and politicians. However, since Elon Musk acquired the platform in 2022, the checkmarks have been available to any user willing to pay approximately seven euros per month. This change has blurred the lines of credibility, making it difficult for users to discern between genuinely verified accounts and those simply paying for the status.
Transparency in Advertising
X has also been charged with failing to comply with the DSA’s advertising transparency rules. The regulations mandate that platforms maintain a searchable and reliable database of all digital advertisements, including details on who paid for the ads and their intended audience. The Commission found that X’s ad database is neither easily searchable nor reliable, with design features that obstruct transparency and hinder research into the potential risks associated with online advertisements.
Another significant concern is X’s approach to data accessibility for researchers. The DSA requires platforms to provide public data access to enable scrutiny of their operations and the evolution of online risks. However, the Commission reported that X’s process for granting data access is cumbersome, often deterring researchers or forcing them to pay high fees. Additionally, researchers are unable to independently scrape data from the site, further limiting their ability to analyze the platform’s activities.
Elon Musk’s Response
Elon Musk responded combatively to the Commission’s accusations, claiming on X that the European Commission had offered the platform an “illegal secret deal” to avoid fines if it censored speech quietly. Musk did not provide further details or evidence to support his claims. X’s response to inquiries was limited, with an automated message stating, “Busy now, please check back later,” following reports that the company’s main spokesperson left in June.
European Commissioner Thierry Breton expressed concern over the changes in X’s verification process, stating that the current system deceives users and violates the DSA. The Commission’s investigation into X is ongoing, with further scrutiny on whether the platform is adequately curbing illegal content such as hate speech and terrorism incitement. Additionally, the effectiveness of X’s Community Notes fact-checking feature, which relies on crowd-sourced input, is under review.
X is not alone in facing DSA-related investigations. Other tech giants, including TikTok, AliExpress, and Meta Platforms (owner of Facebook and Instagram), are also being examined for their compliance with the new regulations.
X now has an opportunity to respond to the Commission’s findings and implement necessary changes to comply with the DSA. These changes will become legally binding, and failure to satisfy the Commission could result in severe financial penalties and mandatory corrective actions. The Commission’s focus on transparency and accountability aims to enhance the safety and integrity of online platforms, protecting users from deceptive practices and harmful content.
The European Commission’s accusations against X mark a significant step in enforcing the Digital Services Act. As the investigation continues, the outcome will likely set a precedent for how other tech companies are held accountable under the new regulations. Elon Musk and X face a critical period ahead, with the potential for substantial penalties and required reforms to align with the EU’s stringent digital content rules.
